Statkraft Report Underscores Renewables’ Central Role in Energy Security and Growth

Statkraft has released its latest annual report on the pace of the global energy transition, analysing developments across three possible pathways: an optimistic green scenario, a delayed transition, and a scenario marked by global unrest.

In the green scenario, global warming could be limited to 1.9°C — in line with the Paris Agreement’s 2°C goal, though still above the 1.5°C target. However, if progress slows, the report warns that global temperatures could rise by around 2.4°C, with serious implications for people and the planet.

The report notes that renewable technologies continue to experience strong global growth, with new records set each year. In 2024, global investments in clean energy and infrastructure nearly doubled those in fossil fuels, according to data from the IEA and Ember. Statkraft’s scenarios project that solar generation will grow by three to six times by 2035, and by six to twelve times by 2050. By 2035, renewables are expected to account for more than 50 percent of global power generation, rising to 66–80 percent by 2050.

Renewable energy, the report emphasizes, is not only central to achieving climate goals but also key to ensuring Europe’s energy security and economic competitiveness. With low costs and short construction times, solar and wind are identified as the most vital clean technologies. The replacement of fossil gas with renewable electricity in industrial processes could further strengthen Europe’s industrial competitiveness.

“Our scenarios show that it is still possible to reach the 2-degree target of the Paris Agreement, but this requires a significantly faster pace of emission cuts than we see today. Geopolitical tension and economic and political challenges impact the speed of the energy transition, but the rapid cost reductions for mature technologies such as solar, wind, and batteries mean that the bulk of global CO2 emission cuts are still within reach. At the same time, we see that the last and most challenging emission cuts – especially in parts of the industry and long-distance transport – are becoming harder and more expensive than previously assumed,” says Bolkesjø.

“Renewable energy is the key to success, not only to replace coal and gas power, but also to accelerate electrification of transportation and heating. A key for the future growth is to adopt more flexibility solutions to integrate more renewable power. Statkraft can play a crucial role in achieving this through our competence in balancing energy markets and investing in flexible solutions,” says Head Analyst and lead author of the report, Mari Grooss Viddal.