ESS to Grow 17-Fold by 2050... Solar Power to Become World's Largest Energy Source by 2032

Bloomberg NEF "2026 New Energy Outlook" Report

Data Center Power Demand to Double by 2050

80% of New Nuclear Capacity Concentrated in China and India

Gas to Surpass Oil as Largest Primary Energy Source by Mid-2040s

There is a projection that within the next six years, solar power will become the world’s largest single source of electricity due to large-scale oversupply and falling prices. Battery energy storage systems (ESS) are expected to grow 17 times by 2050. Power demand from data centers is projected to double by 2050.

On June 1, Bloomberg New Energy Finance (NEF) released its updated "2026 New Energy Outlook," which presents an updated Energy Transition Scenario (ETS) outlining the evolution path of energy systems over the next 10 years and out to 2050.

According to Bloomberg NEF’s ETS, by 2050, two-thirds of new energy demand will be met by electricity, while natural gas will supply an additional 25%.

The increase in demand is expected to be driven by electric vehicles, data centers, and further electrification. Global data center capacity reached 84 gigawatts (GW) in 2025, up 20% from the previous year.

Data centers consumed 500 terawatt-hours (TWh) of electricity last year, which accounted for 1.9% of global power demand. This is projected to more than double to 1,114 TWh (3.6% of total demand) by 2050. This scale is roughly equivalent to one-tenth of global electricity consumption.

China, which is rapidly advancing electrification, had already made electricity its main final energy source as of 2023. The share of coal-fired power is expected to decrease from 32% in 2025 to 19% in 2035, and further down to 7% by 2050.

In India, electricity is expected to surpass oil and coal as the leading energy source by 2041. In Europe, electricity will become the main energy source by 2043, while the United States, with a slower pace of transition, is expected to reach the same level by 2047.

The report also forecasts that solar power, driven by large-scale oversupply and price declines, will become the world’s largest source of electricity by 2032. The outlook for ESS has also been revised upward, with battery capacity projected to increase 17 times, from 223 GW in 2025 to 3.8 TW in 2050.

While electric vehicles are expected to reduce oil demand, Bloomberg NEF projects that the clean power sector will make the largest contribution to carbon dioxide emissions reduction. In other words, the shift will be from coal-fired power to renewables, batteries, and gas.

During this process, the role of batteries will also increase. Currently, storage technologies such as batteries allow about 3% of total electricity generation to be consumed at a different time than when it is produced. This share is expected to rise to 11% by 2035.

In 2025, global investment in the energy transition reached a record high of $2.3 trillion. Bloomberg NEF forecasts that a total investment of $235 trillion will be required by 2050 to achieve net zero.

Bloomberg NEF expects oil demand to peak in 2029 due to electrification of transportation (including the introduction of electric vehicles) and then fall back to early-2000s levels. In contrast, gas demand is projected to grow strongly due to the need to supply electricity for data centers, and by the mid-2040s, it will surpass oil to become the largest share of primary energy.

Bloomberg NEF also noted the "dash to gas" phenomenon, stating, "An increasing number of countries including Argentina, Brazil, Canada, Guyana, Israel, and Mozambique are joining in expanding production."

Although coal-fired power has attracted renewed attention due to a focus on energy security, Bloomberg NEF believes that a sustained recovery is unlikely.

Bloomberg NEF forecasts, "Coal-fired power’s share in the electricity sector peaked at 41% in 2011, and by 2050 it will account for only 8% of total power generation." They stated that the structural decline of coal power in the electricity sector is clear, but due to its advantage of being able to supply power around the clock and its role in certain industrial processes, it will not be easily eliminated from the global energy system.

The expansion of nuclear power is being led by the Asia-Pacific region. According to the Bloomberg ETS, China and India are expected to account for 80% of the increase in global nuclear power capacity through 2035. Of the 75.5 GW of nuclear capacity currently under construction worldwide, 44 GW is concentrated in China and India, with China accounting for 38 GW and India for 6 GW.

According to the Bloomberg ETS, China’s greenhouse gas emissions are projected to decrease by 17% by 2030 compared to the 2023 peak. By 2050, emissions will have fallen by nearly 50% from their peak, but are still expected to significantly exceed current levels in the United States or Europe.

This content was produced with the assistance of AI translation services.