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What Electricity Sources Power the World?

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Electricity Sources by Fuel in 2022

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What Powered the World in 2022?

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In 2022, 29,165.2 terawatt hours (TWh) of electricity was generated around the world, an increase of 2.3% from the previous year.

In this visualization, we look at data from the latest Statistical Review of World Energy, and ask what powered the world in 2022.

Coal is Still King

Coal still leads the charge when it comes to electricity, representing 35.4% of global power generation in 2022, followed by natural gas at 22.7%, and hydroelectric at 14.9%.

Power by fuel

Source: Energy Institute

Over three-quarters of the world’s total coal-generated electricity is consumed in just three countries. China is the top user of coal, making up 53.3% of global coal demand, followed by India at 13.6%, and the U.S. at 8.9%.

Burning coal—for electricity, as well as metallurgy and cement production—is the world’s single largest source of CO2 emissions. Nevertheless, its use in electricity generation has actually grown 91.2% since 1997, the year when the first global climate agreement was signed in Kyoto, Japan.

 

 

Renewables on the Rise

However, even as non-renewables enjoy their time in the sun, their days could be numbered.

In 2022, renewables, such as wind, solar, and geothermal, represented 14.4% of total electricity generation with an extraordinary annual growth rate of 14.7%, driven by big gains in solar and wind. Non-renewables, by contrast, only managed an anemic 0.4%.

The authors of the Statistical Review do not include hydroelectric in their renewable calculations, even though many others, including the International Energy Agency, consider it a “well-established renewable power technology.”

With hydroelectric moved into the renewable column, together they accounted for over 29.3% of all electricity generated in 2022, with an annual growth rate of 7.4%.

France’s Nuclear Horrible Year

Another big mover in this year’s report was nuclear energy.

In addition to disruptions at the Zaporizhzhia nuclear power plant in Ukraine, shutdowns in France’s nuclear fleet to address corrosion found in the safety injection systems of four reactors led to a 4% drop in global use, year-over-year.

The amount of electricity generated by nuclear energy in that country dropped 22% to 294.7 TWh in 2022. As a result, France went from being the world’s biggest exporter of electricity, to a net importer.

Powering the Future

Turning mechanical energy into electrical energy is a relatively straightforward process. Modern power plants are engineering marvels, to be sure, but they still work on the same principle as the very first generator invented by Michael Faraday in 1831.

But how you get the mechanical energy is where things get complicated: coal powered the first industrial revolution, but heated the planet in the process; wind is free and clean, but is unreliable; and nuclear fission reliably generates emission-free electricity, but also creates radioactive waste.

With temperature records being set around the world in the summer, resolving these tensions isn’t just academic and next year’s report could be a crucial test of the world’s commitment to a clean energy future.

 

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Energy

Charted: 4 Reasons Why Lithium Could Be the Next Gold Rush

Visual Capitalist has partnered with EnergyX to show why drops in prices and growing demand may make now the right time to invest in lithium.

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The teaser image shows a bubble chart showing that the price of a Tesla is similar to that of other major auto manufacturers.

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The following content is sponsored by EnergyX

4 Reasons Why You Should Invest in Lithium

Lithium’s importance in powering EVs makes it a linchpin of the clean energy transition and one of the world’s most precious minerals.

In this graphic, Visual Capitalist partnered with EnergyX to explore why now may be the time to invest in lithium.

1. Lithium Prices Have Dropped

One of the most critical aspects of evaluating an investment is ensuring that the asset’s value is higher than its price would indicate. Lithium is integral to powering EVs, and, prices have fallen fast over the last year:

DateLiOH·H₂O*Li₂CO₃**
Feb 2023$76$71
March 2023$71$61
Apr 2023$43$33
May 2023$43$33
June 2023$47$45
July 2023$44$40
Aug 2023$35$35
Sept 2023$28$27
Oct 2023$24$23
Nov 2023$21$21
Dec 2023$17$16
Jan 2024$14$15
Feb 2024$13$14

Note: Monthly spot prices were taken as close to the 14th of each month as possible.
*Lithium hydroxide monohydrate MB-LI-0033
**Lithium carbonate MB-LI-0029

2. Lithium-Ion Battery Prices Are Also Falling

The drop in lithium prices is just one reason to invest in the metal. Increasing economies of scale, coupled with low commodity prices, have caused the cost of lithium-ion batteries to drop significantly as well.

In fact, BNEF reports that between 2013 and 2023, the price of a Li-ion battery dropped by 82%.

YearPrice per KWh
2023$139
2022$161
2021$150
2020$160
2019$183
2018$211
2017$258
2016$345
2015$448
2014$692
2013$780

3. EV Adoption is Sustainable

One of the best reasons to invest in lithium is that EVs, one of the main drivers behind the demand for lithium, have reached a price point similar to that of traditional vehicle.

According to the Kelly Blue Book, Tesla’s average transaction price dropped by 25% between 2022 and 2023, bringing it in line with many other major manufacturers and showing that EVs are a realistic transport option from a consumer price perspective. 

ManufacturerSeptember 2022September 2023
BMW$69,000$72,000
Ford$54,000$56,000
Volkswagon$54,000$56,000
General Motors$52,000$53,000
Tesla$68,000$51,000

4. Electricity Demand in Transport is Growing

As EVs become an accessible transport option, there’s an investment opportunity in lithium. But possibly the best reason to invest in lithium is that the IEA reports global demand for the electricity in transport could grow dramatically by 2030:

Transport Type202220252030
Buses 🚌23,000 GWh50,000 GWh130,000 GWh
Cars 🚙65,000 GWh200,000 GWh570,000 GWh
Trucks 🛻4,000 GWh15,000 GWh94,000 GWh
Vans 🚐6,000 GWh16,000 GWh72,000 GWh

The Lithium Investment Opportunity

Lithium presents a potentially classic investment opportunity. Lithium and battery prices have dropped significantly, and recently, EVs have reached a price point similar to other vehicles. By 2030, the demand for clean energy, especially in transport, will grow dramatically. 

With prices dropping and demand skyrocketing, now is the time to invest in lithium.

EnergyX is poised to exploit lithium demand with cutting-edge lithium extraction technology capable of extracting 300% more lithium than current processes.

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