Fossil Fuel New Energy Generation

Global Fossil Fuel New Energy Generation Market to Reach US$859.0 Billion by 2030

The global market for Fossil Fuel New Energy Generation estimated at US$411.8 Billion in the year 2024, is expected to reach US$859.0 Billion by 2030, growing at a CAGR of 13.0% over the analysis period 2024-2030. Coal, one of the segments analyzed in the report, is expected to record a 12.3% CAGR and reach US$492.4 Billion by the end of the analysis period. Growth in the Gas segment is estimated at 14.7% CAGR over the analysis period.

The U.S. Market is Estimated at US$108.2 Billion While China is Forecast to Grow at 12.3% CAGR

The Fossil Fuel New Energy Generation market in the U.S. is estimated at US$108.2 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$133.8 Billion by the year 2030 trailing a CAGR of 12.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 11.9% and 11.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 9.6% CAGR.

Global Fossil Fuel New Energy Generation Market – Key Trends & Drivers Summarized

Why Is the Role of Fossil Fuels Evolving in the Energy Generation Sector?

Fossil fuels—including coal, oil, and natural gas—have historically been the backbone of global energy generation, supplying the majority of the world`s electricity. However, as climate change concerns, carbon emissions regulations, and sustainability targets drive the global energy transition, the role of fossil fuels is undergoing a transformation. Instead of being phased out entirely, fossil fuel-based power generation is adapting to new energy technologies, efficiency improvements, and integration with renewable energy sources to ensure energy security and reliability in a rapidly changing energy landscape.

One of the biggest shifts in fossil fuel-based energy generation is the rise of low-emission and hybrid power plants. Advanced technologies such as carbon capture, utilization, and storage (CCUS), hydrogen co-firing, and supercritical and ultra-supercritical combustion systems are making fossil fuel power plants cleaner and more efficient. Additionally, natural gas is increasingly being positioned as a transition fuel, replacing coal-fired plants due to its lower carbon footprint and ability to integrate with renewable energy systems. As governments and industries balance the need for decarbonization with energy stability, fossil fuels are evolving rather than disappearing.

How Are Technological Advancements Making Fossil Fuel Energy More Sustainable?

Technological advancements are transforming fossil fuel energy generation by making it cleaner, more efficient, and better integrated with renewables. Some of the most significant innovations include:

• Carbon Capture, Utilization, and Storage (CCUS): One of the most promising technologies for reducing emissions from fossil fuel power plants is CCUS, which captures carbon dioxide (CO2) before it is released into the atmosphere and either stores it underground or repurposes it for industrial applications. Many countries are investing in large-scale CCUS infrastructure to retrofit existing fossil fuel plants and reduce their carbon intensity.
• Hydrogen Co-firing in Thermal Power Plants: The integration of hydrogen fuel into natural gas and coal power plants is emerging as a low-carbon solution. By co-firing hydrogen with natural gas, power plants can reduce their carbon emissions while maintaining reliability and dispatchability. Several pilot projects are underway in Japan, the U.S., and Europe, where hydrogen is being blended with fossil fuels to gradually transition toward a hydrogen-based energy system.
• Ultra-Supercritical (USC) and High-Efficiency Low-Emissions (HELE) Coal Technologies: While many countries are phasing out coal, others are adopting advanced combustion technologies that significantly improve efficiency and reduce emissions. USC and HELE plants operate at higher temperatures and pressures, increasing energy output per unit of coal while minimizing greenhouse gas emissions. These technologies are particularly being implemented in China and India, where coal remains a major energy source.
• Hybrid Fossil-Renewable Power Plants: The integration of renewables with fossil fuel generation is an emerging trend aimed at stabilizing grid operations and reducing emissions. Hybrid plants combine solar or wind power with natural gas turbines, allowing for a more flexible and balanced power supply. This hybrid approach is particularly beneficial in regions where renewable energy intermittency needs to be managed effectively.
• Digitalization and AI in Power Plant Operations: AI-driven predictive analytics, real-time monitoring, and smart grid technology are improving the efficiency of fossil fuel power plants. Advanced software and machine learning algorithms optimize fuel consumption, predict maintenance needs, and enhance energy dispatch strategies, reducing waste and improving overall performance.

What Are the Emerging Trends in the Fossil Fuel New Energy Generation Market?

Several key trends are shaping the future of fossil fuel energy generation, influenced by climate policies, technological advancements, and shifts in global energy demand.

1. The Transition Toward Natural Gas as a "Bridge Fuel":
• Many coal-dependent countries are accelerating the transition to natural gas due to its lower carbon intensity and ability to complement renewable energy sources.
• The rise of liquefied natural gas (LNG) exports and infrastructure is enabling a more flexible and distributed energy system, especially in regions with limited renewable energy capacity.
• Investments in blue hydrogen (hydrogen produced from natural gas with carbon capture) are increasing as a way to make natural gas-based energy even more sustainable.
2. Decentralized and Distributed Fossil Fuel Power Generation:
• Instead of relying on large centralized power plants, many energy markets are shifting toward decentralized energy systems that integrate small-scale natural gas turbines, cogeneration plants, and microgrids.
• This shift enhances energy resilience and grid flexibility, particularly in remote areas or locations where grid infrastructure is underdeveloped.
3. Geopolitical Shifts Affecting Fossil Fuel Supply Chains:
• The global energy market is experiencing supply chain disruptions, geopolitical tensions, and shifting trade policies, which are influencing the availability and cost of fossil fuels.
• Countries are focusing on energy independence and diversification, leading to increased investment in domestic fossil fuel production, LNG terminals, and alternative energy sources.
4. Stricter Carbon Pricing and Emission Regulations:
• Governments worldwide are implementing carbon pricing mechanisms, emissions trading systems (ETS), and clean energy mandates to encourage decarbonization.
• Energy companies are investing in low-carbon fossil fuel technologies to comply with these regulations and maintain competitiveness in a carbon-constrained economy.
5. The Growth of Enhanced Oil Recovery (EOR) Using CO2 Capture:
• Fossil fuel companies are adopting CO2-enhanced oil recovery (EOR) techniques, where captured CO2 is injected into oil fields to increase extraction efficiency while storing emissions underground.
• This method provides a dual benefit of extending oil field life and reducing net carbon emissions, making it an attractive solution for oil producers.

What Factors Are Driving the Growth of New Energy Generation From Fossil Fuels?

The continued investment in fossil fuel-based energy generation is driven by several key factors, including:

• Global Energy Demand Growth: The increasing global demand for electricity—especially in developing economies such as India, China, and parts of Africa—is sustaining the need for reliable, dispatchable fossil fuel power to support industrialization, urbanization, and economic growth.
• Grid Stability and Energy Security: Despite the growth of renewables, fossil fuels remain essential for grid stability, especially during periods of low wind or solar output. Governments and energy companies are investing in flexible gas-fired and hybrid power plants to ensure uninterrupted energy supply.
• Industrial and Heavy-Duty Applications: Many industries, such as steel, cement, and chemical manufacturing, rely on high-temperature processes that are difficult to electrify. Fossil fuels—particularly natural gas and hydrogen derived from fossil sources—continue to play a critical role in industrial energy generation.
• Technological Investments and Energy Transition Strategies: Major energy companies are investing in decarbonized fossil fuel technologies as part of their long-term energy transition strategies. This includes carbon-neutral LNG, hydrogen production from natural gas, and CCUS projects, which are making fossil fuel-based energy cleaner and more sustainable.

SCOPE OF STUDY:

The report analyzes the Fossil Fuel New Energy Generation market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Source (Coal, Gas, Oil)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 48 Featured) -

• BP Plc
• Chevron Corporation
• China National Petroleum Corporation (CNPC)
• China Petroleum & Chemical Corporation (Sinopec)
• ConocoPhillips
• Duke Energy Corporation
• EDF (Électricité de France)
• Enel S.p.A.
• Engie S.A.
• Eni S.p.A.
• ExxonMobil Corporation
• Gazprom
• National Thermal Power Corporation (NTPC)
• PetroChina Company Limited
• Royal Dutch Shell Plc
• Saudi Aramco
• Southern Company
• TotalEnergies SE
• Uniper SE
• Vistra Corp.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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