‘The only question was when,’: energy expert says he predicted ERCOT grid failure in 2013
Renewable electricity will be the only source of resilience to the worst global energy crisis in 70 years caused by the coronavirus pandemic.
International energetic The agency said the Covid-19 outbreak will wipe out demand for fossil fuels, causing a market crash seven times greater than that seen during the global financial crisis.
In its report, the IEA stated that the steepest drop in energy demand since World War II will lead to to multi-year lows in global oil, gas and coal consumption, while renewables will continue to grow.
The steady rise in the aforementioned sources, coupled with falling demand for fossil fuels, means that clean electricity will play its biggest role in the global energy system this year and will help minimize the decade-long rise in global carbon emissions..
The demand for renewable energy is expected to grow by 5% this year, accounting for nearly 30% of global electricity demand. The rise of renewables, despite the global crisis, could push fossil fuel companies to achieve their goals of producing cleaner energy. Executive Director of the IEA Fatih Birol believes that governments should also include clean energy as the backbone of economic stimulus packages for the implementation of the global environmental restoration program.
«It is too early to talk about the consequences. But, after the crisis, the energy industry will differ significantly from the one that was before», – he added.
The pandemic caused a collapse in oil prices, which at the beginning of April, for the first time, there was a negative price of WTI black gold.
Global efforts to contain the spread of Covid-19 have resulted in severe restrictions on travel and the entire global economy, leading to the largest drop in oil demand in 25 years..
Gas demand is expected to drop 5% after a decade of continuous growth. This is the sharpest drop since gas became widely used as a source of energy in the second half of the last century..
Coal demand is projected to fall 8% from 2019, the largest decline since the end of World War II.
The Paris-based Energy Authority used data from each country and each energy sector to analyze the impact of the pandemic on the global system..
It found that global energy demand is likely to fall 6% this year, equivalent to losing all of India’s energy demand. – the world’s third largest energy consumer – or the combined energy demand of France, Germany, Italy and the UK.