The world\u2019s response to Covid-19 can \u201creshape the future of energy\u201d for years to come, the International Energy Agency said Tuesday in its annual World Energy Outlook report.<\/p>\n
The IEA report underscored that most important of all is how the crisis will ultimately affect the transition to clean energy, CNBC reported.<\/p>\n
The report noted that while the clean energy transition continues to gain momentum, faster and bolder structural changes are needed if the world is to reach net-zero carbon emissions.<\/p>\n
\u201cThe Covid-19 crisis has caused more disruption than any other event in recent history, leaving scars that will last for years to come,\u201d the Paris-based agency said in a statement.<\/p>\n
\u201cCovid-19 unleased a crisis of exceptional ferocity on countries around the world …The crisis is still unfolding today \u2014 and its consequences for the world\u2019s energy future remain highly uncertain.\u201d<\/p>\n
Going forward, IEA believes that renewables will take \u201cstarring roles,\u201d and solar will take \u201ccenter stage,\u201d driven by supportive government policies and declining costs.<\/p>\n
\u201cI see solar becoming the new king of the world\u2019s electricity markets,\u201d said Fatih Birol, IEA\u2019s executive director. \u201cBased on today\u2019s policy settings, it is on track to set new records for deployment every year after 2022.\u201d<\/p>\n
On the other hand, IEA forecasts that coal demand will not return to pre-coronavirus levels, and that it will account for less than 20% of energy consumption by 2040, for the first time since the Industrial Revolution.<\/p>\n
Oil will remain \u201cvulnerable to the major economic uncertainties resulting from the pandemic,\u201d with demand starting to decline after 2030, the agency said.<\/p>\n
Due to the ongoing impacts of Covid-19, the IEA expects global energy demand to fall by 5% in 2020, with oil and coal consumption falling 8% and 7%, respectively.<\/p>\n
Natural gas demand is expected to decline by 3% this year \u2014 the largest decline since it became a major source of fuel in the 1930s \u2014 but the agency sees an uptick in demand over the next decade driven by growth from emerging economies. The outlook has been revised slightly since April, when the agency predicted energy demand could drop 6% in 2020.<\/p>\n
As is customary, the report outlined the impacts of several different scenarios rather than just one given the number of variables in flux. But in a departure from recent years, the IEA chose to focus more heavily on the pivotal next 10 years.<\/p>\n
Under the \u201cStated Policies Scenario,\u201d Covid-19 will be brought under control in 2021 and energy demand will rebound to its pre-crisis level in 2023, while the \u201cDelayed Recovery Scenario\u201d models a slower economic recovery from the pandemic, with energy demand not rebounding until 2025.<\/p>\n
\u201cIt is too soon to say whether today\u2019s crisis represents a setback for efforts to bring about a more secure and sustainable energy system, or a catalyst that accelerates the path of change,\u201d the report said.<\/p>\n
The only energy source expected to grow this year is renewables.<\/p>\n","protected":false},"excerpt":{"rendered":"
The world\u2019s response to Covid-19 can \u201creshape the future of energy\u201d for years to come, the International Energy Agency said Tuesday in its annual World Energy Outlook report. The IEA report underscored that most important of all is how the crisis will ultimately affect the transition to clean energy, CNBC reported. The report noted that […]<\/p>\n","protected":false},"author":1,"featured_media":3756,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[747,8],"tags":[118,1093,1069,966,474,54,252,56,213,84,638],"yoast_head":"\n