IEA: Only renewable sources of energy that have been resilient to the sharp decline in demand since WW-II
NEW DELHI: Thursday said the changes were the only ones strength source that will be resilient to the pandemic wiping out for strength the most since World War-II and seven times greater than the slump caused by the global financial crisis.
According to the agency’s World Energy Review, strength demand is expected to fall 6% this year. In absolute terms, this is unprecedented and equivalent of losing the entire strength demand of India , the world’s third-largest strength consumer. Each month of worldwide lockdown at the levels seen in early April is seen reducing annual global strength demand by about 1.5%.
The report said electricity demand is set to decline by 5% by 2020, the largest decline since the Great Depression of the 1930s. This is because lockdowns have resulted in significant reductions in overall electricity demand, with consumption levels and patterns during working days similar to a pre-crisis Sunday. The entire lockout pushed up electricity demand by 20% or more as in India, which saw a 26% reduction in consumption.
This is not good news for coal - the main fuel for electricity generation in much of the world - badly damaged by the current crisis. Coal is particularly strong, with global demand expected to fall by 8% in the current year, the biggest decline since World War II. Following its 2018 peak, power-fired power generation is set to fall more than 10% this year, the report says.
Global oil demand is expected to fall by 9.3 million barrels per day (bpd), or 9% of daily supply, while gas demand is expected to fall by 5%. Oil demand fell 5% in the first quarter but could eventually become the worst fuel in 2020, with total demand as high as 9%.
The fall in fossil fuel demand, especially coal, will lead to a fall in carbon dioxide emitting 8%, six times greater than the largest collapse of 400 million tonnes recorded in 2009 following the global crisis in finance. But given the number of fatalities and the trauma of the economy around the world, the historic collapse in global exits is unconditional, the executive director of the IEA said during the review.
Describing its projections as "conservative", the IEA report urged governments to seize on the disruptions to build greener strength infrastructure – an area where India is progressing apace as part of its larger climate goal of reducing the economy’s carbon footprint.
“This is a historic shock to the entire strength world. Amid today’s unparalleled health and economic crises, the plunge in demand for nearly all major fuels is staggering, especially for coal, oil and gas. Only renewables are holding up during the previously unheard-of slump in electricity use. It is still too early to determine the longer-term impacts, but the strength industry that emerges from this crisis will be significantly different from the one that came before,” Birol said.