The report is in response to the exceptional circumstances stemmed from the coronavirus pandemic. This year's Global Energy Review report has expanded its coverage to include real-time analysis of developments in 2020 and give possible directions for the rest of the year.
Major highlights of the Report
Global energy demand declined by 3.8% in the first quarter of 2020, with much of its impact felt in March as lockdown measures were enforced in Europe, North America, and elsewhere in the world.
- Global coal demand was hit the hardest, falling by almost 8% compared with the first quarter of 2019. Reasons attributed to explain this drop are
- China being a coal-based economy was hardest hit by Covid‑19 in the first quarter
- Low gas prices and continued growth in renewables elsewhere has challenged coal
- And even mild weather also capped coal usage.
- Oil demand was also hit sharply and was down nearly 5% in the first quarter because of restrictions on mobility and aviation. They both combined account for almost 60% of global oil demand. By the end of March, global road transport activity has practically reduced by 50% below the 2019 average and aviation by 60% below the 2019 average.
- Gas demand was moderate at around 2%. The outcome of it was that gas-based economies were not much affected in the first quarter of 2020.
- Renewables were the only source of energy that posted growth in demand, which were driven by larger installed capacity and priority dispatch.
- Electricity demand has been drastically reduced as a result of lockdown measures. The need for electricity has been reduced by 20% or more during periods of full lockdown in several countries. Reductions in commercial and industrial operations far outweigh residential demand.
- Global CO2 emissions are expected to decline by 8% or almost 2.6 gigatonnes i.e., to the levels which were 10 years ago. This year's reduction would be the largest ever, than the previous record reduction of 0.4 Gt in 2009 that was caused by the global financial crisis and twice as large as the combined total of all earlier reductions since the end of World War II.
Aftermath of prior crises saw the rebound in emissions might be larger than the decline. We have to realize that such a thing doesn't happen again, and the investment to restart the economy is dedicated to clean and resilient energy infrastructure.
About the International Energy Association:
- The International Energy Agency is a Paris-based autonomous intergovernmental organization established under the framework of the OECD (Organization for Economic Co-operation and Development) in 1974 in the wake of the 1973 oil crisis.
- Headquarter of IEA is in Paris, France.
Facts for Preliminary examination
- India is not a member country to the IEA (International energy association). India is an associate member nation party to IEA.
- Some other important reports released by IEA are
- World energy outlook
- Global energy review
- Energy technology perspective
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