Power demand growth is “clouded by uncertainty” as coal makes a comeback amid “the first truly global energy crisis”, said the International Energy Agency (IEA) in its latest electricity market report.
The Paris-based agency expects the world’s electricity demand to grow by 2.4% this year, slowing from 2021’s 6% post-Covid rebound and back in line with the average growth rate in the five years before the pandemic.
“While electricity demand is currently expected to continue on a similar growth path into 2023, the outlook is clouded by economic turbulence and uncertainty over how fuel prices could impact the generation mix,” said the IEA.
“Strong capacity additions” in wind and solar will push up renewable power generation by 10% in 2022, the agency reckons, contributing to an overall 1% fall in fossil power output.
That should push down power sector CO2 emissions from their record high of last year – but only by 1%.
The IEA data confirms the comeback for coal prompted by Europe’s dash to compensate for Russian gas
“Globally, coal use for power is expected to increase slightly in 2022 as growth in Europe is balanced by contractions in China, due to strong renewables’ growth and only a modest rise in electricity demand, and the United States, due to constraints on supply and coal power plant capacity,” said the report.
IEA director of energy markets and security Keisuke Sadamori said: “The world is in the midst of the first truly global energy crisis, triggered by Russia’s invasion of Ukraine, and the electricity sector is one of the most heavily affected.
“Governments are having to resort to emergency measures to tackle the immediate challenges, but they also need to focus on accelerating investment in clean energy transitions as the most effective lasting response to the current crisis.”
