Exim Energy CEO Akbay: Global Energy Demand to Rise by 18% by 2050
Foreks - Eksim Energy CEO Arkın Akbay evaluated the future of the sector through the 'Turkey's Energy Transformation Roadmap 2035' announced by the Ministry of Energy and Natural Resources. Akbay stated, “Considering the measures to be taken against fluctuating commodity and equipment costs, the goal of energy independence, and the destructive effects of climate change, we need to accelerate the energy transformation. While global energy demand is expected to increase by 18% by 2050, it is predicted that most of this growth will come from developing economies. In this context, Turkey's investment targets of $80 billion for wind energy and $28 billion for the transmission system necessary for transporting generated energy, set for 2035, provide a vision that surpasses global trends in the renewable energy sector.”
The global green transformation is generating a wave of fundamental changes in energy production and consumer demand worldwide, aiming to build a sustainable future. Accordingly, investments in clean energy sources are steadily increasing. Arkın Akbay, CEO of Eksim Energy, which operates under Eksim Holding, noted that the company is preparing to play a significant role in the future of renewable energy with its 100% renewable energy investments and provided evaluations on the 2035 Energy Transformation Plan and the global status of renewable energy.
Interpreting the global picture through the McKinsey & Company's 2024 Global Energy Perspective Report, Arkın Akbay mentioned, “The report states that significant progress has been made in the nine years since the Paris Agreement was signed, but measures against fluctuating commodity and equipment costs, the goal of energy independence, and most importantly, the destructive effects of climate change indicate that we need to accelerate the energy transformation. It is essential for governments to focus on policy changes and global consensus, taking concrete steps in this direction. Despite the increase in private sector commitments, we are cautiously monitoring that emissions are not declining at the targeted pace. Energy demand is rising as expected, indicating that we need to integrate clean energy sources beyond merely transforming existing capacity. Timely access to economic green financing has become critical to achieving net-zero targets.”
On the increase in renewable energy demand, Akbay stated that artificial intelligence will play a significant role. "Global energy demand is projected to increase by 18% by 2050. Most of this growth is expected to come from developing economies such as Southeast Asia, India, and the Middle East. The introduction of solutions where high-temperature processes will also be met by electricity, the increasing market share of electric vehicles, the rise of artificial intelligence in business models, and the subsequent demand from data centers positively influence the pace of energy demand growth. AI solutions have the potential to create an economic value between $10 to $15 trillion annually for the global economy. It is estimated that total electricity demand from data centers could increase by 5 to 9% by 2050. To meet even a quarter of this projected demand increment, we will need an additional 50 to 75 GW of clean energy sources globally.”
Akbay emphasized the importance of sustainability in the process of meeting this additional demand, stating, “The effective implementation of green financing is of utmost importance for meeting demand, spreading wealth, reducing income inequalities, and transforming the direction of climate change to repair ecosystems. We should be able to provide economic financing sources including local production wherever equipment is produced most economically. Countries must work together to develop with fair sharing. We must leave behind the existing environment where equipment is financed mostly through self-production and exported to others.”
Evaluating Turkey's Renewable Energy 2035 vision in conjunction with the global situation, Akbay said, “Strategies such as the proliferation of low-carbon technologies, increasing energy efficiency, and expanding renewable energy capacity are also on our country’s energy agenda. To reach the goal of limiting global warming to 1.5°C, carbon emissions need to be reduced by 50% by 2030, and the share of renewable energy sources in energy supply should be increased to 65-80%. In this context, Turkey's investment targets of $80 billion for wind energy and $28 billion for the transmission system necessary for transporting generated energy set for 2035 provide a vision that surpasses global trends in the renewable energy sector. The 7,500 MW wind and solar projects to be commissioned each year to reach the 120,000 MW installed capacity target will play a critical role in Turkey’s energy independence and supply security, adding value to the competitiveness of our industry. The growth plan supported by storage wind and solar power plants, capacity increase in existing facilities, and self-consumption projects holds valuable potential to improve energy production efficiency per unit area and reduce carbon emissions.” Akbay also added that they would continue to contribute to the 2035 vision through Eksim Energy investments.
"Contributions to local equipment production will accelerate sustainable growth," Akbay stated, noting that the contribution of local equipment usage should also be applied to storage units, which will accelerate the green transition in energy. “YEKDEM and local contribution support have not only expanded our industry’s product range but have also contributed to our exports. Collaboration between the private sector and government institutions on renewable transformation financing supports us to gain a strong position in global competition. Renewable energy sources offer more economical cost opportunities compared to fossil fuels, which have alternatives, contributing to reducing the average electricity energy costs in our country. This enables us to enhance the competitiveness of our industry. As a sector, we can use the accumulated intellectual and financial capital to increase production quality and installed capacity, supplying our consumers with more economical electricity. It is now time for our industry to ensure long-term predictability of electricity energy costs through long-term electricity supply agreements. In this way, our industry will prioritize its productivity investments to enhance competitiveness and innovation without entering a new focus area in energy investments with which it is not very familiar.”