Global Energy Demand Set to Jump 60% by 2060 as Developing Nations Power Up

S&P Global’s recent analysis finds that surging energy use across developing countries could push total world demand more than 60% higher by 2060. The firm frames that increase as roughly comparable to adding another China to global consumption, driven by fast economic growth and rising living standards in nations across Africa, Asia and Latin America.

Governments from Brazil to India and Nigeria are accelerating efforts to expand both domestic energy production and imports to keep pace with growing needs. At the same time, the report and industry observers note a marked increase in renewable deployment in many emerging markets, aided in part by low-cost clean-energy equipment manufactured in China.

Despite the rapid uptake of solar and other clean technologies, S&P Global and market commentators expect an ‘‘all-of-the-above’’ energy mix to meet near- and mid-term demand. Vice chairman Dan Yergin said renewables will be important but cautioned that coal, oil and gas are likely to remain part of the equation for longer than some expect.

Advocates for development note that expanded energy access is closely tied to jobs, incomes and poverty reduction. Energy for Growth Hub deputy executive director Katie Auth emphasized that many low-income countries still consume very little electricity per capita, and that enlarging energy systems cannot wait for further cost declines in renewables. The report also highlights the unfinished record of climate finance commitments from wealthy countries, which complicates the transition plans of poorer nations.