The International Energy Agency (IEA) has recently released a report named “Global Energy Review:2020”, which examines the impact of the Covid-19 pandemic on global energy demand and CO2 emissions. The widespread implementation of lockdown measures in many countries has greatly limited transportation, including road and air travel. This has led to a significant drop in worldwide energy demands.
Global Energy Demands
Countries under full lockdown are witnessing an average decrease of 25% in energy demand per week. Meanwhile, those with a partial lockdown are seeing about an 18% weekly dip in energy demand. The first quarter of 2020 saw a 3.8% decline in global energy demand compared to the same period in 2019.
The report predicts that the effects of Covid‑19 on energy demand in 2020 will surpass seven times the impact of the 2008 financial crisis on global energy demand. From this, we can analyze the global demand for various energy sources:
Coal Demand
The demand for coal fell by 8% compared to the first quarter of 2019, largely due to China – a coal-based economy – being hit hardest by Covid‑19 in the first quarter.
Oil Demand
Oil saw a 5% decrease in demand during the first quarter, primarily due to cutbacks in mobility and aviation which account for nearly 60% of global oil demand. The report estimates that the global oil demand may drop by 9% on average in 2020, bringing oil consumption back to 2012 levels.
Gas Demand
The effect of the pandemic on gas demand has been minor, at around 2%, as gas-based economies were not severely impacted in Q1 2020.
Renewables Energy Resources Demand
Renewable resources are the only energy source to see an increase in demand, driven by a larger installed capacity. The demand for renewables is projected to grow by 1% by 2020 due to low operating costs and preferential access for many power systems.
Electricity Demand
Electricity demand dropped by 20% during full lockdown periods in several countries, with residential demand unable to offset reductions in commercial and industrial operations.
Covid-19 and CO2 Emissions
It is expected that emissions could decrease by 8% in 2020 compared to 2019, reaching the lowest level since 2010. This is six times larger than the reduction experienced during the 2009 financial crisis and twice as large as all reductions combined since World War II.
India’s Energy Demands
India, one of the IEA association countries, has seen its energy demands drop by 30% as a result of a nationwide lockdown. With the slowing economic growth and power production, the demand for coal in India is expected to decline sharply.
About International Energy Agency
The International Energy Agency (IEA) is an independent organization that works to ensure reliable, affordable, and clean energy. It was established after the 1973 oil crisis when the OPEC cartel shocked the world with a significant increase in oil prices. Its headquarters is in Paris, France. The IEA releases the annual World Energy Outlook report, and India became an associate member in 2017.