Global electricity demand growth is slowing, driven by high prices and weak economies.

While global electricity demand growth is expected to decline sharply this year compared to last year due to weak global economic indicators and high prices, it is calculated that carbon emissions from the power sector electricity will decrease by 1% due to the slowdown in demand.

According to the Electricity Market Report of the International Energy Agency (IEA), demand for electricity will increase by 2.4% this year. This rate is quite low compared to the sharp 6% increase in electricity demand last year after the Covid-19 outbreak. However, the increase parallels the average increase in demand over the past 5 years before the outbreak.

The main reasons that have slowed the growth in electricity demand are that economies continued to weaken due to Russia’s war in Ukraine before economies could recover from the outbreak, and that rising natural gas and coal prices have driven up electricity prices. .

Despite limited growth in global electricity demand, electricity generation from renewable energy sources is expected to increase by 10% this year, to replace generation from fossil fuels, albeit to a limited extent.

Increased production of electricity from coal

Nuclear power generation is expected to decline by 3% this year. Despite this, it is calculated that low-carbon electricity generation will increase by 7% in total and lead to a 1% decrease in electricity generation from fossil fuels.

As generation from low-carbon sources increases and demand slows, carbon emissions from the power sector are expected to decrease by 1%. As a result, carbon emissions from the global power sector will have fallen from their all-time high in 2021.

The decrease in carbon emissions will be seen in a period when coal consumption is increasing due to natural gas supply constraints in the world and in particular in Europe after the Russian-Ukrainian war.

Coal-fired power generation is expected to rise this year, driven by European usage, while natural gas-fired power generation is expected to fall 2.6% due to higher prices.

The most efficient solution, accelerating clean energy transformation

According to the report, in the first half of this year, average natural gas prices in Europe increased 4 times and coal prices increased 3 times compared to the same period last year. Increases in coal and gas prices have also more than tripled electricity prices in many markets.

UEA’s Director of Energy Markets and Security, Keisuke Sadamori, in his assessment of the report, said the world experienced the “first truly global energy crisis” due to the impact of war. Russian-Ukrainian, and said:

“The electricity sector is one of the hardest hit sectors. This is particularly evident in Europe, where the energy market is experiencing severe turbulence. Likewise in emerging economies, where constraints Supply shortages and rising prices are posing challenges to fragile power systems and causing outages. Governments are taking immediate action with immediate action. They are seeking solutions to the challenges, but they must also focus on accelerating the transition to clean energy, because the most effective and sustainable response to this crisis can be achieved with clean energy sources.”

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