Of the three sectors, transport has the lowest penetration of renewables. While renewable energy in transport is expected to grow by 19% between 2018 and 2023, the overall renewable share remains small. In transport demand, renewables grew from 3.4% in 2017 to just 3.8% in 2023. Even so, renewables account for 12% of transport fuel demand growth.
Biofuel production continues to increase, rising 15% to 165 billion litres by the end of the forecast. In transport sector energy demand, biofuels still hold an almost 90% share of total renewables in 2023, even though electric mobility expands rapidly. Fuel ethanol makes up two-thirds of biofuel production growth, and biodiesel and hydrotreated vegetable oil (HVO) provide the remainder.
Renewable electricity in transport is expected to increase by two-thirds. Electric cars, two- and three- wheelers, and buses lead this growth; their electricity consumption almost triples over the forecast period. However, rail still accounts for most of renewable consumption in 2023. Overall, by the end of the forecast period, renewables provide almost one-third of the global demand for electrified transport.
Renewables 2018 is the IEA market analysis and forecast from 2018 to 2023 on renewable energy and technologies. It provides global trends and developments for renewable energy in the electricity, heat and transport sectors.
You can read or download the full report from our content partners here.