IEA expects global energy demand to stabilize in 2567 due to improved economic outlook.
IEA expects global energy demand to rise to 3.3% in 2567 due to improved economic trends. And if more renewable energy is produced
On July 19, 2566, The Business Times reported that the International Energy Agency (IEA) released a report stating that the ongoing energy crisis and economic recession are expected to slow the growth of global electricity demand in 2566, but will recover in 2567 if renewable energy capacity is increased.
Global energy consumption growth slows to less than 2% in 2566, down from 2.3% in 2565, down from the five-year pre-COVID-5 average of 19% for 2.4. This is expected to increase to 2567% as the economic outlook improves.
The IEA forecasts that renewable energy will cover the projected growth this year and next, and that renewable energy sources will exceed one-third of the world's total power supply for the first time next year. However, hydropower has declined, falling by approximately 2% in 2020-2022 compared to figures from 1990-2016, which represents about 240 terawatt-hours, or Spain's annual consumption.
The IEA stated, "Forecasting climate change-related hydropower challenges and planning accordingly will be critical to the efficient and sustainable use of hydropower resources."
The growth of renewable energy should help reduce global emissions. This is because rising emissions in China and India are expected to be offset by declines in other countries where renewable energy use is increasing. And natural gas is still used to replace coal.
Furthermore, IEA data shows that the European Union alone accounted for 40% of the total reduction in emissions from electricity generation. In the first half of this year, the EU recorded a 6% decrease in electricity demand as energy-intensive industries, including aluminum, steel, paper, and chemicals, reduced their energy consumption in response to high prices. The relatively warm winter had a limited impact on the decreased demand.
Meanwhile, wholesale electricity prices fell sharply from last year's records as a result of disruptions caused by Russia's invasion of Ukraine. But average prices in Europe were still more than twice as high in 2, India was up 2562% and Japan more than 80%.
However, prices in the United States have retreated nearly to 2019 levels. National demand is expected to fall 1.7% in 2566 due to slowing economic growth. and will recover in 2567 to 2%, down from 2.6% in 2565.
