• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 9 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 10 hours Reality catching up with EV forecasts
  • 3 hours Famous author Michael Crichton talks about the "Climate Change Religion" aka Feudalism 2.0
  • 6 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 11 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 11 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide

IEA:Global Electricity Demand Has Slowed Dramatically

In its latest Electricity Market Report, the Paris-based International Energy Agency (IEA) says that global demand for electricity is already slowing sharply thanks to slowing economic growth and high energy prices.

“Electricity demand growth is slowing significantly in 2022. After global electricity demand grew by a strong 6% in 2021, propelled by rapid economic recovery as COVID-19 lockdowns eased, we expect growth to slow to 2.4% in 2022--about the same as the average from 2015 to 2019,” according to the report.

The agency said that the slowing growth reflected slower global economic growth and higher energy prices following Russia’s invasion of Ukraine as well as renewed public health restrictions, particularly in China.

ADVERTISEMENT

Renewable sources of energy are growing faster than demand and replacing fossil fuels, according to the international energy body, with strong capacity additions so far this year helping global renewable power generation achieve a 10% growth clip.

Further, the agency notes that the EU is gearing up to lower its reliance on Russian fossil fuel imports by accelerating the clean energy transition.

ADVERTISEMENT

The IEA has given a poor prognosis for the coming year, too: “As of mid-2022, we expect global electricity demand growth in 2023 to remain on a similar path as this year. Strong renewables growth of 8% and recovering nuclear generation could displace some gas and coal power, resulting in the electricity sector’s CO2 emissions declining by 1%,” the IEA has predicted in its report.

If accurate, falling electricity demand is likely to be bad news for natural gas producers, with fossil fuels accounting for a whooping 25% of global electricity generation.

In more bad news for natural gas punters, the European Union has proposed to member states Wednesday to cut gas usage by 15% until March as it braces for the "likely scenario" that Russia could cut off gas flows to Europe.

By Alex Kimani for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

ADVERTISEMENT


ADVERTISEMENT


Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News