Last year was a record year for renewables when 50 percent of all newly-built power plants relied on renewable energy sources, Fatih Birol, executive director of the International Energy Agency (IEA), said.
Renewables are also set to make their mark in the next 25 years in growth in the global energy market, Birol said.
China led the way globally in terms of renewables in 2015, achieving a number one place for wind, solar and hydroelectricity investments, he said.
“China and the U.S. have implemented significant new policies and subsidies in renewables in the last few years, increasing their expectations of the market growth due to the sharp drops in costs,” Birol said, speaking at a conference organized by Sabanci University Istanbul International Center for Energy and Climate (IICEC) to present the ‘World Energy Outlook 2016’.
The largest contribution to world energy consumption in the last 25 years came from coal, Birol remarked, adding "but coal consumption is expected to seriously slowdown in the next 25 years, with oil demand increasing more slowly compared with the previous periods,“ he said.
Middle Eastern countries’ oil production hit 35 percent of the world's total up to last month, reaching its largest share in the last 40 years, Birol said.
Shale gas and oil formed contributed to the economic and geopolitical developments in the world in recent years, he also remarked.
- U.S. oil imports could die out in next 10-15 yrs
The U.S.' oil imports could almost become non-existent in the next 10-15 years, if the country's oil production significantly increases with the new Trump administration, according to Birol.
“This development will affect not only oil markets but lots of other areas as well. It will help the U.S. achieve independence in terms of oil. It is right to think that shale gas and oil production will increase with the new U.S. government," he said.
Birol noted the renewable energy market was a fast-growing, profitable area in the U.S. providing significant labor opportunities.
He said the IEA expects a volatile period in the oil markets, with a projected drop in new investments over the next three years.
“This kind of drop will be a first in history,” he remarked.
”It is inevitable that world oil markets will experience huge problems if demand growth stays at 1 million barrels per day in the next 2-3 years.” he added.
- Israeli gas going over Turkey most economical
Turkey should follow a balanced and steady energy diplomacy in this volatile period in the Middle East, Birol emphasized.
“How Israeli gas will be transmitted will probably be discussed for years. But looking at it from a purely economic point of view, it is probably the most profitable solution if it is transported over Turkey,” he asserted.
Commenting on the assassination of the Russian Ambassador Andrey Karlov to Ankara on Monday night, Birol said he did not expect this to affect relations between Russia and Turkey.
“Economic realities are stubborn,” he said, warning that “there are some very important trade agreements at stake.”
Writing by Sibel Akbay
Reporting by Zeynep Duyar Canli
sibel.akbay@aa.com.tr