Electricity Market Report:
The early 2022 edition of the Agency’s bi-annual Electricity Market Report has been published.
Highlights of the report:
- Nations are largely turning to fossil fuels to meet the increase in electricity demand as Covid-19 lockdown restrictions are lifting.
- The global electricity demand rose 6% year-on-year in 2021 – the steepest year-on-year increase recorded by the IEA since the financial crash of 2008 onwards.
- Global energy intensity fell 1.9% year-on-year – a drop only half as steep as the level needed to lay the foundation for net-zero by 2050.
- While electricity generation from renewables was up 6% year-on-year in 2021, generation from coal was up by 9%, led by markets including China and India, with coal serving more than half of the increase in demand.
- This, coupled with a 2% increase in gas-fired generation, caused a 7% year-on-year increase in emissions from the power sector.
- After two years of decline, this means that emissions from the power sector are now at a record high.
- The IEA is voicing concerns that, despite the growing net-zero movement, nations are still failing to decouple increased electricity demands from increased emissions.
- It is forecasting that power sector emissions will likely remain “around the same level” for the next three years.
- In contrast, the IEA’s net-zero by 2050 scenario entails a 55% decrease in sectoral emissions by 2030, against a 2019 baseline.
- The report also charts increases in wholesale gas and electricity prices, globally, to “unprecedented” levels, as well as “volatile” coal prices.
- In March 2017, India became an associate member of IEA.
- Established in 1974 as per the framework of the OECD, IEA is an autonomous intergovernmental organisation.
- Its mission is guided by four main areas of focus: energy security, economic development, environmental awareness and engagement worldwide.
- Headquarters (Secretariat): Paris, France.