An energy transition is underway. Solar and wind are being added in ever-greater numbers. Electric vehicles are becoming more commonplace. Meanwhile, policy makers are grappling with the right mix of policies to pay for it all.
Bloomberg New Energy Finance’s conference on the future of energy in Asia assembled industry executives, policy makers and bankers tackle some of the big questions surrounding energy.
“The past tells us a very clear lesson, and that is that we have underestimated the pace of the energy transition,” BNEF analyst Kobad Bhavnagri said as the conference started in Shanghai.
Here are some of the highlights from Tuesday’s presentations:
EVs are here to stay
Electronic vehicles have become a key element of the energy transition.
BNEF expects 530 million EVs on the road by 2040. Moreover, the researcher expects more electric buses and trucks as that segment of the transportation market becomes more attractive for electrification.
The implications for oil are significant, with the researcher expecting EVs to displace 8 million barrels of daily oil demand by 2040. Meanwhile, China is not only interested in EVs for the domestic market. The world’s most-populous nation is aiming to become a globally competitive automaker by the 2020s — with the latest EV technology.
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