Global energy consumption rises, challenging transition narrative

The world is consuming more oil, gas, coal and renewables than ever before, the International Gas Union's chief of staff told the final day of Baku Energy Week, challenging the conventional understanding of energy transition.

"There is not so much energy transition as there is an energy addition," said Damjan Krnjević Mišković, chief of staff to the IGU secretary-general.

"We're consuming more and more oil and gas and coal and nuclear and biomass and renewables than we ever have before in the world," Krnjević Mišković explained.

The dominant theme of the day revolved around how to expand renewable capacity without abandoning the hydrocarbons that still underpin energy security and export revenues for producer economies.

Azerbaijan's President Ilham Aliyev set out his country's renewable targets at the forum's opening ceremony earlier in the week, saying Azerbaijan would have 2 gigawatts of solar capacity installed by the end of next year and aimed for 8 gigawatts by 2032.

"Countries should not be judged by having oil or not having oil, but by how they use revenues, how they invest to develop the country, to provide better living conditions for the people, how they invest in green agenda issues," Aliyev said.

He also noted that Azerbaijan now exports gas to 16 countries, 10 of which are EU members, and pointed to new electricity and green energy corridors linking the Caspian region to European markets via the Black Sea.

Nuran Karimov, managing partner of Deloitte Azerbaijan, said renewable energy had moved from a niche debate into the mainstream of every energy discussion.

"The discussion around green energy is not put in opposition to conventional fossil fuel. Most speakers spoke about energy mix," he said.

Transmission infrastructure emerged as a central concern. Fuat Age Aslan, international business development manager at HT Solar, argued that grid upgrades were as important as generating capacity itself.

"The grid is always important because grids are the roads and highways for electricity transmission. Once we are implementing renewable-energy systems, the grid efficiency and transmission capabilities need to improve urgently," Aslan said.

"At the Caspian Sea, Azerbaijan has very high potential for wind power. And also in the region we have a lot of potential for solar and hydro."

Battery storage, digital energy management and AI-driven grid systems were also widely discussed as components of the next phase of development. Karimov said AI had been a defining theme across the forum.

"At every panel we heard how technology, including AI, is profoundly changing the traditional way energy is produced, processed and transmitted," he said.