1. 10 Facts:
An Introduction to
Energy Transition

2. As energy transition takes off, access to new
competitive clean-energy alternatives will accelerate.
Businesses and
governments that
want to capitalize
on the opportunities
will need to navigate
a rapidly changing
energy landscape
shaped by four key
dimensions:
Energy security
Providing safe and reliable
supply of energy to all,
including the poorest
Energy
costs
Enabling
acceptable
energy costs
to foster
economic
growth
Social
acceptance
Deploying energy
solutions that are
accepted by the
civil society
Climate change
Developing sustainable
low carbon solutions
suitable in a carbon
constrained world
Source: A.T. Kearney Energy Transition Institute

3. 1. Decoupling greenhouse gas emissions from
economic growth is improving at only 1% per year.
Securing economic growth and energy efficiency will
require innovative new approaches.
1960
Notes: GDP in constant USD2014; Energy refers to total primary energy demand; CO2 refers to energy-related CO2 emissions
Source: BP (2015) “Statistical review”; World Bank (2015) GDP data; A.T. Kearney Energy Transition Institute
0.4
0.2
0.0
0.3
0.1
1970
Global Primary Energy Consumption per GDP
kgofoilequivalent/GDP$
1980 1990 2000 2010 2020
–0.9%

4. 2. Energy use has a major
impact on our climate—
accounting for two-thirds
of global greenhouse
gas emissions.1
Forward-thinking businesses
and governments are investing
in solutions that use less energy,
reduce costs, and make it easier
for consumers to make the
transition.
2/3
Remaining 1/3
from forestry/agriculture/waste (25%)
and other industrial emissions (9%)
Source: IEA, CO2 Emissions from Fuel Combustion Highlights 2016; A.T. Kearney Energy Transition Institute
1 Including CO2 (90%), CH4 (9%), N2O (1%)

5. 3. Switching from coal
to gas could reduce
the world’s CO2
emissions by 20%
With more than 200
years of gas reserves,
utilities and oil and
gas companies have
a wealth of growth
opportunities.
Natural gas supply (years)
233
Technically recoverable
resources
58
Proved reserves
(according to OPEC)
20
Proved
reserves
(according to RYSTAD)
1
Annual
production
Sources: IEA, World Energy Outlook 2013; OPEC Annual Statistical Bulletin 2014,
Rystad Energy; A.T. Kearney Energy Transition Institute

6. 4. Carbon capture and
storage is essential
to keep global warming
from rising above the
2°C threshold, but it
requires robust carbon
pricing mechanisms or
direct public financial
support to compensate
for the immediate high
upfront investments
that are needed.
CO2
Source: A.T. Kearney Energy Transition Institute

7. 5. With major automakers introducing new
models, the global fleet of electric vehicles
could see massive growth.
However, this will still only
be about 10 percent of the
world’s vehicles. Improving
fuel engine efficiency
will remain a priority
for our climate for
years to come. 2015
2030
140
million+1
million
Sources: EA Energy Technology Perspectives 2016 (2DS scenario); A.T. Kearney Energy Transition Institute

8. 6. Onshore wind and solar PV are the cheapest
electricity sources in favorable locations,
offering attractive investment opportunities
and accelerating the energy transition.
2017
Production
costs/kWh
1970s
Sources: IRENA (2015), “Renewable Power Generation Costs in 2014”; A.T. Kearney Energy Transition Institute
Note: kWh is kilowatt hour.

9. 7. Up to 20% of electricity is lost during
transmission and distribution.
Smart-grid technologies can recover most of these
losses and reduce CO2 emissions by up to 4 percent
in the next 10 to 15 years.
Gener-
ation
Trans-
mission
Distri-
bution
Consump-
tion
Sources: The World Bank, "Electric power transmission and distribution losses, 2011 dataset"; IEA (2012), “ETP 2012”; A.T. Kearney Energy Transition Institute

10. 8. The global energy transition is being led by
new technologies and drastic drops in the cost
of electricity storage needed to cope with fluctu-
ations in renewable power generation. With the
exception of pumped-storage hydroelectricity,
electricity storage is at an embryonic stage.
Current split of electricity storage
98%
Pumped
hydro storage
0.7%
battery storage
1.3%
other1
Sources: BNEF database (November 2015); IRENA database (November 2015); A.T. Kearney Energy Transition Institute
1 Includes thermal; flywheel, hydrogen, and CAES (compressed air energy systems)

11. 9. The energy industry
uses 15% of the world’s
supply of fresh water.
Meanwhile, two-thirds
of the world’s population
faces a water shortage.
Solar and wind power
improves energy security
while also alleviating the
water shortage in water-
stressed regions.
Sources: IEA (2012), “World Energy Outlook 2012 – Chapter 17 Water for Energy”; A.T. Kearney Energy Transition Institute
Note: calculated using mean data from Meldrum, et al. (2013)

12. 10. If we used all of the world’s coal, oil, and
gas reserves, we would exceed the CO2
threshold to limit global warming below
2°C three times over.
Forward-thinking oil and
gas companies are already
considering ways to
optimize their portfolios
to avoid stranded assets
and are pursuing
opportunities in gas
and renewable energy.
Sources: IPCC (2015) “AR5, Synthesis Report”; A.T. Kearney Energy Transition Institute
1,900
GtCO2
C02 emitted
(1870–2011)
1,000
GtCO2
C02 budget remaining
in the 21st century

13. The A.T. Kearney Energy Transition Institute is a nonprofit organization. It provides leading insights on global
trends in energy transition, technologies, and strategic implications for private sector businesses and public
sector institutions. The Institute is dedicated to combining objective technological insights with economical
perspectives to define the consequences and opportunities for decision makers in a rapidly changing energy
landscape. The independence of the Institute fosters unbiased primary insights and the ability to co-create
new ideas with interested sponsors and relevant stakeholders.
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