Global Energy Review 2020 is released by IEA

Report highlights the global energy demand in 2020 and carbon dioxide emissions

• The International Energy Agency (IEA) has released ―Global Energy Review – 2020‖ which
  also includes the impact of the Covid-19 crisis on global energy demand and CO2 emissions
• The imposition of lockdown in several countries has largely restricted transportation such as
  road and air travel
• The report highlights the global energy demand in 2020 and carbon dioxide emissions and
  the drastic reduction in the global energy demands has been observed

Highlights on “Global Energy Demands”

• The countries in full lockdown are experiencing an average decline of 25% in energy demand
  per week, while in those with a partial lockdown, the fall in energy demand is about 18% per
  week
• Global energy demand declined by 3.8% in the first quarter of 2020 compared to the first
  quarter of 2019
• Further, it is expected that the impact of Covid-19 on energy demand in 2020 would be more
  than seven times larger than the impact of the 2008 financial crisis on global energy demand

I. Oil Demand:

• It has declined by 5% in the first quarter, majorly due to curtailment in mobility and
  aviation, which account for nearly 60% of global oil demand
• The report also estimates that the global demand for oil could further drop by 9% on average
  in 2020, which will return oil consumption to 2012 levels

II. Gas Demand:

The impact of the pandemic on gas demand has been moderate, at around 2%, as gas-based
economies were not strongly affected in the first quarter of 2020

III. Renewable Energy Resources Demand:

• It is the only source that has registered a growth in demand, driven by larger installed
  capacity
• Further, the demand for renewable is expected to rise by 1% by 2020 because of low
  operating costs and preferential access for many power systems

III. Electricity Demand:

• It has been declined by 20% during periods of full lockdown in several countries
• However, the residential demand is outweighed by reductions in commercial and industrial
  operations

IV. Coal Demand:

• It has been declined by 8% compared with the first quarter of 2019
• The reasons for such decline include, China – a coal-based economy – was the country
  hardest hit by Covid-19 in the first quarter and cheap gas and continued growth in renewable
  elsewhere challenged coal

Covid-19 and CO2 Emissions

• Overall, the emissions decline in 2020 could be 8% lower than in 2019, which would be the
  lowest level of emissions since 2010
• It is also the largest level of emission reduction — six times larger than witnessed during the
  2009 financial crisis, and twice as large as the combined total of all reductions witnessed since
  World War II
• In the first quarter of 2020, the decline in CO2 emissions is more than the fall in global
  energy demand
• India, which is one of the IEA association countries, has experienced a reduction in its
  energy demands by 30% as a result of the nation-wide lockdown

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