🔮 The transition is hiding in plain sight #604

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The electrification of the global economy appears to be progressing further than many realize. According to data from the International Energy Agency, electricity now powers 46% of global GDP, yet it only accounts for 23% of the final energy we consume. This discrepancy in measurement highlights the significant progress we've made in the transition to electrification.

The focus often remains on final energy because the remaining 77% that hasn't been electrified is where most emissions are generated. However, this perspective may underestimate the extent of our advancements. When we consider electricity's value based on the utility it generates, rather than the quantity we consume, the transition appears much further along.

This gap stems from the inherent efficiency of electrical technology. For instance, a gasoline-powered car converts only about 25% of its fuel into motion, while an electric vehicle achieves efficiency levels of 85-90%. Similarly, electricity delivers roughly 2.5 times the useful work per joule compared to oil. This efficiency advantage underscores the substantial strides we've taken in electrifying various sectors of the economy.