‘Renewables set for powerhouse status by 2035’

Renewable energy will become the dominant source of global electricity by 2035, driven by solar and wind power alongside expanding grids and energy storage, according to Statkraft’s Green Transition Scenarios 2026 report.

The Norwegian energy company said global electricity consumption is expected to grow by 50 to more than 100 per cent by 2050 across four scenarios examining the future energy system.

Statkraft added that electricity will become increasingly important for economic growth, industrial competitiveness and energy security, particularly in countries dependent on fossil fuel imports.

The report identifies electrification as a major driver of the energy transition, with electric vehicles, heat pumps and other technologies replacing less efficient fossil fuel alternatives.

Electric vehicles use 60–90 per cent less energy than internal combustion engine vehicles, while heat pumps can reduce energy consumption for heating by 50–80 per cent.

“In a turbulent world marked by growing geopolitical tensions, trade barriers and major regional differences, electricity is increasingly becoming the foundation for competitiveness, energy security and industrial growth,” said Torjus Folsland Bolkesjø, head of Global Energy Drivers at Statkraft and co-author of the report.

Global energy-related CO₂ emissions are approaching their peak and are expected to decline towards 2050, with reductions ranging from 20 to 56 per cent across the scenarios.

However, even the greenest scenario falls short of the 1.5°C climate target, while the least ambitious points to warming below 2.7°C with a 67 per cent probability unless emissions reductions accelerate after 2050.

In Europe, renewable energy accounted for 48 per cent of EU electricity generation in 2025, compared with 38 per cent in 2021.

Despite this progress, the EU continues to import 57 per cent of its energy, highlighting the importance of expanding domestic renewable generation and accelerating electrification.

The report identifies electricity grids, storage and system flexibility as key challenges for Europe’s energy transition.

Artificial intelligence and data centres are also expected to increase electricity demand, with data centres accounting for 6–9 per cent of total EU electricity consumption by 2050 across the scenarios.

The scale of this growth will depend on AI adoption, improvements in energy efficiency, grid access and local acceptance.

“The pace at which new power generation and grid capacity can be developed will be decisive for where and how quickly new data centres are established,” said Bolkesjø.

In Norway, where renewable sources already account for 98 per cent of electricity generation, slow development of new capacity could reduce the country’s power surplus.

Annual Norwegian electricity generation is projected to range from 176TWh to 253TWh by 2050, largely depending on future wind power development.

Since 2021, Norway has added around 6GW of generation capacity, compared with 13GW in Sweden.

Hydropower is expected to remain the dominant source of Norwegian electricity, accounting for between 60 and 80 per cent of generation in 2050.

Onshore wind, supported by flexible hydropower, could provide substantial additional electricity at competitive costs, while grid upgrades and interconnectors will be important for security of supply.

“Norway’s challenge is not a lack of resources. The challenge is whether new generation and grid capacity can be developed quickly enough to meet rising demand and maintain industrial competitiveness,” said Mari Grooss Viddal, head analyst and co-author of the report.

Statkraft’s annual Green Transition Scenarios report examines four possible pathways for the global, European and Norwegian energy systems from 2026 to 2050.

More information:https://www.renews.biz/other-news/renewables-set-for-powerhouse-status-by-2035/