Energy's interconnected future demands integrated intelligence

The global energy system has reached a critical inflection point. Wood Mackenzie's seventh annual Energy Transition Outlook, analysing 35 commodities across energy and natural resources sectors, reveals the world now confronts an energy landscape of unprecedented complexity. Emissions trajectories continue to deteriorate, climate targets drift further from reach, and market volatility has reached extraordinary levels.

In this complex, more interconnected energy system, we argue business as usual is over in the book Connected and that traditional siloed approaches to analysis and decision-making have become dangerously obsolete.

The energy complexity challenge intensifies

Energy demand maintains its relentless upward trajectory, propelled by expanding populations, robust economic growth, and rising aspirations across developing nations. This growth outpaces gradual improvements in energy efficiency, creating fundamental challenges for global energy systems. Wood Mackenzie analysis reveals the world remains on a 2.6 °C pathway, deterioration from our base case prediction a year ago and still far from the Paris Agreement's goals of limiting warming to 1.5 °C or even 2 °C.

Why so little progress? The war in Ukraine disrupted commodity markets and threatened energy security. Tensions in the Middle East have added to energy security fears. The global economy still runs on fossil fuels, with oil, gas and coal meeting 80% of energy needs today.

The numbers reveal stark realities. No major G7 nation remains on track to meet 2030 emissions goals. Peak emissions are now projected for 2028, with the subsequent decline rate slowing to 2% annually. Variable renewables will surge from 20% of generation today to 60% by 2050, with solar power alone doubling by 2030 and overtaking coal in 2034.

This transformation unfolds amid extraordinary complexity. The artificial intelligence boom strains global power markets, with data centres set to consume 700 TWh in 2025, exceeding electric vehicle demand. By 2050, data centres could consume 3,500 TWh, equivalent to current demand in India and the Middle East combined.

Fill in the form at the top of the page to download your complimentary report: Energy’s interconnected future demands integrated intelligence.

In this report, we explore:

• The gradual decline of fossil fuels
• How artificial intelligence accelerates disruption
• The emergence of the interconnection imperative
• The dawn of the intelligence revolution

ADIPEC 2025

This content was originally promoted at ADIPEC in Abu Dhabi. 

As an official Knowledge Partner of ADIPEC 2025, Wood Mackenzie brings unparalleled analysis, data and perspective to the global dialogue on the future of energy.