Global Energy Review 2020 : IEA – Economics

Table of Contents

Recently, the International Energy Agency (IEA) has released a report namely, Global Energy Review:2020
It also includes the impact of the Covid-19 crisis on global energy demand and CO2 emissions.

DETAILS

The imposition of lockdown in several countries has largely restricted transportation such as road and air travel.
In turn, the drastic reduction in the global energy demands has been observed.

Global Energy Demands

The countries in full lockdown are experiencing an average decline of 25% in energy demand per week
With a partial lockdown, the fall in energy demand is about 18% per week.
Global energy demand declined by 3.8% in the first quarter of 2020 compared to the first quarter of 2019.
It is expected that the impact of Covid-19 on energy demand in 2020 would be more than seven times larger than the impact of the 2008 financial crisis on global energy demand.
Coal Demand:
Declined by 8% compared with the first quarter of 2019.
Reasons :
China – a coal-based economy – was the country hardest hit by Covid-19 in the first quarter.
Cheap gas and continued growth in renewables elsewhere challenged coal.
Oil Demand:
Declined by 5% in the first quarter
Due to curtailment in mobility and aviation, which account for nearly 60% of global oil demand.
Global demand for oil could further drop by 9% on average in 2020, which will return oil consumption to 2012 levels.
Gas Demand:
The impact of the pandemic on gas demand has been moderate
Around 2%
Gas-based economies were not strongly affected in the first quarter of 2020.
Renewables Energy Resources Demand:
Only source that has registered a growth in demand, driven by larger installed capacity.
Demand for renewables is expected to rise by 1% by 2020 because of low operating costs and preferential access for many power systems.
Electricity Demand:
Declined by 20% during periods of full lockdown in several countries.
Residential demand is outweighed by reductions in commercial and industrial operations.

Covid-19 and CO2 Emissions

Overall, the emissions decline in 2020 could be 8% lower than in 2019.
Lowest level of emissions since 2010.
It is also the largest level of emission reduction — six times larger than witnessed during the 2009 financial crisis, and twice as large as the combined total of all reductions witnessed since World War II.
In the first quarter of 2020, the decline in CO2 emissions is more than the fall in global energy demand.

India’s Energy Demands

China and India are the largest and third-largest electricity users in the world respectively
Coal use is dominant in both these countries shaping the global demand for this fuel.
Reduction in its energy demands by 30% as a result of the nation-wide lockdown.
The demand for coal is expected to decline steeply.