The International Energy Agency (IEA) has released its flagship annual publication, the World Energy Outlook. This report provides crucial insights into the evolving energy context, driven by increasing capacities in liquefied natural gas (LNG) and oil production, alongside a surplus of key transition goods such as photovoltaic (PV) panels and batteries. These elements are central to the global energy transition.

One of the significant drivers of rising electricity demand is the growing use of electric vehicles and air conditioning. As these technologies become more prevalent, the report underscores the urgent need for a robust energy infrastructure to support this demand.

In terms of investment trends, the IEA forecasts that by 2035, photovoltaic and wind energy will surpass coal-generated electricity, assuming current policy frameworks remain in place. Additionally, the report highlights a noteworthy resurgence in nuclear energy, indicating a potential shift in energy strategies as countries seek to diversify their energy portfolios.

The heat market is also poised for transformation, with increasing electrification, particularly through the adoption of heat pumps. District heating systems are expected to expand in certain markets, aligning with the recent updates to the net zero roadmap.

As the report emphasises the role of district heating in the transition to a low-carbon energy system, it presents a critical opportunity for cities and regions to enhance energy efficiency and reduce greenhouse gas emissions. By integrating renewable energy sources and leveraging waste heat, district heating can provide a sustainable solution to meet growing energy demands while supporting decarbonisation efforts. The path forward for district heating will require innovative policies, investment, and collaboration among stakeholders to ensure its successful implementation and alignment with net zero goals.

IEA's World Energy Outlook reveals changing energy landscape and the importance of district heating and cooling in the energy transition