Electricity demand around the world is growing faster than the rollout of renewable sources; consequently, to meet the increasing demand more fossil fuel generation will be required, according to the new report by the International Energy Agency.
Firstly, the IEA report says that electricity demand is set to grow by 5% during 2021, and by 4% in 2022, as economies recover from the hit of the Covid-19 pandemic. During 2020 demand fell around 1 per cent.
Secondly, the Agency remarks that, to meet that 5% increase, almost 2,5% will have to be from fossil fuel generation; notably, coal. Consequently, during the coming years, the GHG emissions and specifically CO2 may increase to new high records.
Thirdly, the report says that strong demand will happen in Asia Pacific, primarily in China and India. Nevertheless, renewables are moving quickly, as countries around the world aim to reach their climate goals to 2050. However, that process needs to accelerate even more if that boost in demand is going to be covered by clean sources.
Moreover, as reported by Reuters, renewable sources like hydropower, wind; and also, solar will grow 8% in 2021 and more than 6% in 2022. On the other hand, nuclear power, which is virtually carbon emissions-free will grow 1% and 21%, respectively.
Also recommended for you: Cordelio Power reaches financing completion of 185MW wind project. Click here to read.
Electricity wholesale prices to boost double digit
In addition, the agency remarks. “Even with this strong growth, renewables will only be able to meet around half the projected increase in global electricity demand over those two years. To shift to a sustainable trajectory, we need to massively step-up investment in clean energy technologies; especially renewables and energy efficiency.”
Consequently, CO2 emissions from burning coal and gas most likely will rise around 3,5% in 2021; and by 2,5% in 2022.
On the other hand, about wholesale prices, the agency noted that it expects a rise of 54% in the first half of 2021.
Finally, The IEA also noted that extreme cold, heat and drought have caused disruptions to electricity supply this year, notably the Texas power crisis in February.