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The understanding of potential and kinetic energy has given humans the ability to create and harness heat, motion, electricity, and light. Potential energy is the energy a physical body has due to its relative position to another object or its inherent composition. Relevant within the energy industry are potential energy sources such as wood, coal, or gas. Kinetic energy is the energy released during motion such as wind or steam and is exploited by the power sector through the installation of electricity-generating turbines.
Energy sources are categorized into renewables and non-renewables, depending on the timespan needed for them to be formed. These sources in their natural form serve as primary energy. They may be directly consumed or further manipulated into secondary energy, such as gasoline and electricity. While fossil fuels still lead the global primary energy industry, subsidies and climate-conscious policies have seen the participation of renewables grow consistently.
China is the world's largest energy user
Since the beginning of the century, global energy production and consumption have declined just twice: during the first year of the coronavirus pandemic (2020) and in the year following the Great Recession (2009). China is the world's largest producer and consumer of primary energy. As the second leading economy and home to over 1.4 billion people, it requires far more fuel to power households and industry than any other country.
Fossil fuels remain the leading fuel source
Fossil fuels remain by far the leading primary energy source worldwide. With the first large-scale power plants dating back to the late 19th century, coal- and gas-fired steam engines have since established themselves as indispensable electricity sources. Today, thermal power from fossil-powered steam turbines continues to be the motor for developing economies like China and India. Renewables have been on the growth in recent years, with China again being the global leader.
Leading countries by renewable energy capacity
Hydrogen's role in tomorrow's energy sector
In a bid to reduce the world’s carbon footprint, the energy industry is turning towards hydrogen as an energy carrier. However, current technologies still make fossil-fuel-derived hydrogen (blue hydrogen) the more economically viable option. Today, most hydrogen is produced through natural gas steam reforming with carbon capture and storage. In the future, green hydrogen from electrolysis powered by renewables is forecast to dominate the stage.
Renewable-focused utilities most valuable
Electricity and heating gas are distributed to end-users via public utilities. In 2022, United States-based NextEra Energy and Duke Energy were the most valuable utilities in the world, followed by the Chinese utility Yangtze Power. These companies have invested heavily in renewable capacity in the past decade and have become some of the largest energy companies worldwide, ahead of conventional Big Oil names. In terms of revenue, the world’s leading utilities are based in Europe and China.
Main renewable energy companies
Soaring energy prices
Gas and coal prices skyrocketed in 2021 and 2022, affecting electricity prices in the countries most dependent on these fuels. The prices hiked up when the energy demand recovered after the pandemic and when fossil fuels supply ran short after Russia invaded Ukraine. The issue was aggravated by low renewable power output and depleted fuel stocks after a prolonged winter. After reaching record lows during the pandemic's outbreak, crude oil prices have since rebounded as well.
Industry definition
Within this segment, Statista provides detailed information for all major energy sources, such as fossil energy, renewables, and nuclear power, with an additional focus on the electricity industry and market. Included are key market indicators, such as production, consumption, and prices, in addition to statistics and reports on the leading utilities and industry players.
Source: statista
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