Electricity Market Report: International Energy Agency
Recently the International Energy Agency (IEA) released its preliminary 2022 edition of the bi-annual ‘Electricity Market Report’.
Highlights of the report
- According to the report, countries are turning to fossil fuels on a large scale to meet the increasing demand for electricity.
- Global electricity demand grew by 6% per year in 2021. It was the largest increase per year recorded by the IEA since the 2008 economic downturn.
- Global energy intensity decreased by 1.9% year-on-year. The decline was only half of the level needed to lay the foundation for a net-zero by 2050.
- In the year 2021, electricity generation from renewable energy increased by 6% per year. Production from coal increased by 9%. This growth was led by markets such as China and India.
- Gas-powered production increased by 2%. This growth resulted in a 7% year-on-year increase in emissions from the electricity sector.
International Energy Agency concerns
- Despite a growing “net-zero movement” according to the International Energy Agency (IEA), countries are failing to meet the increased demand for electricity from increased emissions.
- According to the International Energy Agency, electricity sector emissions will remain at the same level for the next three years.
International Energy Agency:
- The International Energy Agency (IEA) is an autonomous organization established in response to the 1973–74 oil crisis.
- The oil crisis was the result of sanctions imposed by OPEC on the US and other developed countries in retaliation for the US decision to support Israel during the Arab-Israeli War.
- The IEA is made up of 30 member countries (OECD countries) and is an important part of the Global Dialogue on Energy, providing research, data/statistics, analysis and recommendations on the global energy sector.
- The mission of the IEA is guided by four main areas of focus, namely energy security, environmental awareness, economic development and worldwide engagement. Its headquarter is in Paris, France.
- The IEA is responsible for coordinating the collective response to major disruptions in oil supply through the issuance of oil stocks to global markets.
Source: The Hindu