Global Energy Demand to Fall 6 Per Cent in 2020 (Download PDF)

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Global Energy Demand to Fall 6 Per Cent in 2020

  • According to Global Energy Review 2020 report, the global energy demand is expected to fall six per cent in 2020.
  • It is steepest fall in percentage terms in 70 years.
  • In absolute terms, the fall is largest ever.
  • The Global Energy Review report is published by International Energy Agency (IEA) .
Global Energy Demand to Fall 6 Per Cent in 2020

Overview

  • All fuels are going to witness greatest contraction in their demand for decades, the only exception being renewables.
  • For some fuels the annual declines will be stronger than the decline in first quarter.
  • In comparative terms the 6 per cent decline in energy demand is equivalent to combined energy demand of France, Germany, Italy and the United Kingdom in 2019.
  • The projected decline in 2020 is seven times the impact that 2008 financial crisis had on the global energy demand.
  • The reported decline in global energy demand is without precedent.
  • China՚s energy demand is projected to decline by more than 4 per cent.
  • From 2010 to 2019, China՚s energy demand was growing with an average of 3 per cent.
  • The greatest declines will be experienced by advanced economies.
  • In United States and the European Union, the demand is likely to fall around 10 per cent below 2019 levels, which is double the impact of global financial crisis.
  • The fall in global energy demand in 2020 could be limited to 3.8 per cent, if lockdowns are shorter and the global recovery is rapid.
  • Even if the decline in global energy demand is limited to 3.8 per cent, it is still four times the decline during global financial crisis.
  • The oil consumption is expected to return to 2012 levels with 9 per cent drop in global oil demand (9 million barrels per day on an average across the year) .
  • Global coal demand is projected to decline by 8 per cent.
  • China՚s recovery of coal demand for electricity generation and industry could offset the larger declines elsewhere.
  • In response to reduced electricity demand, the nuclear power demand is also projected to fall in 2020.
  • The situation can be exacerbated by second wave of pandemic and slow recovery.

- Published/Last Modified on: September 1, 2020

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