Global energy consumption is experiencing the worst hit in its history as Coronavirus pandemic renders most of the world economy crippled.?
A new report now hints that the ongoing period might shape the world energy demands like never before, propelling renewable energy sources to new heights.
A study by the International Energy Agency titled Global Energy Review expects the global energy demand to fall by 6 percent this year. As per the report, this would be ¡°the equivalent of losing the entire energy demand of India.¡±
¡°This is a historic shock to the entire energy 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¡± said IEA executive director Dr Fatih Birol.
The effect can already be seen. US oil prices plunged down to negative recently, reflecting the same. The report mentions the energy demand collapse to be seven times greater than the decline experienced after the 2008 global financial crisis. The single big cause for this is understandably the ongoing shut down of the global economy.
As per the agency, each month of worldwide lockdown at the levels seen in early April reduces the annual global energy demand by around 1.5 percent. ¡°The impact of the crisis on energy demand is heavily dependent on the duration and stringency of measures to curb the spread of the virus,¡± the IEA said. The corresponding drop in electricity demand during a full lockdown is mentioned to be 20 percent or more by the IEA.
As the world seems to increasingly shun the use of fossil fuels for energy, renewable sources of energy are becoming more and more popular. ¡°Only renewables are holding up during the previously unheard of slump in electricity use,¡± Dr Birol said.
The renewable energy sector is the only one expected to grow during the year, with the upcoming projects being specifically designed around the same. The growth is not new-found. Instead, it is a continuous pursuit for many nations over the past couple of years.
India, for instance, added a total of 7.3 GW of solar energy capacity in the year 2019. In addition, 23.7 GW of solar energy projects are still under construction in the country. You can read all about it here.
Another big plus is the drop in the global CO2 emissions expected this year, by as much as 8 percent, as a result of the pandemic.
While the longer-term impacts cannot be accurately predicted, IEA is sure that ¡°the energy industry that emerges from this crisis will be significantly different from the one that came before.¡±