Energy

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.

In a bid to reduce the world’s carbon footprint, the energy industry is turning towards clean electricity and energy storage systems to support this transition. Battery energy storage systems are in the spotlight, as they enable grid flexibility and balancing and can be integrated with renewable energy technology to store energy. China was at the forefront of battery manufacturing in 2023, as well as being the country with the most ambitious energy storage capacity targets.

Electricity and gas are distributed to end-users via public utilities. In 2024, United States-based NextEra Energy and Japan-based Tokyo Electron 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 Asia.

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. Gas and coal prices have since decreased and were moderately impacted by the Israel-Hamas war started in 2023.