According to the IEA, electricity consumption in the EU is expected to reach its lowest level since 2002 this year.
Global electricity demand is set to grow less than 2% this year, according to the latest report from the International Energy Agency (IEA). This forecast is the result of a decrease in electricity demand in the United States, Japan, and the European Union. However, growth is expected to pick up in 2024, with a possible 3.3% increase in electricity demand. The IEA says global electricity demand will grow less than 2% this year, a decline from last year’s growth rate of 2.3%, due to declining energy use in the US and Europe due to the economic slowdown and the effects of the energy crisis.
According to the new IEA report, electricity demand in the United States is expected to decline by almost 2% this year, while Japan is expected to decrease by 3%. Energy demand in the European Union is also set to decline by 3%, following a similar decrease in 2022.
The two consecutive decreases in energy demand in Europe in 2022 and 2023 would represent the largest demand contraction ever recorded in the EU. According to the IEA, EU electricity consumption is expected to reach its lowest level since 2002 this year.
Due to lower demand in advanced economies, global electricity demand growth will slow to 2% this year, down from 2.3% in 2022.
The growth rate will resume in 2024, in anticipation of an improvement in the world economy. Energy demand could register a 3.3% increase next year, as shown by the agency’s latest estimates.
As electricity demand in developed economies declines, China and India will see strong demand growth over the next couple of years. Chinese demand is expected to grow at an average annual rate of 5.2% over the next two years, slightly below the average growth rate of 2015-2019. According to the IEA, electricity demand growth in India is estimated at 6.5% this year and next, well above the 2015-2019 average.
The projected increase in global electricity demand next year suggests that "the growth of renewable energy is more important than ever," the agency added.
The production of energy from renewable sources increased globally by 7.8% in 2022, the highest growth rate in the last 30 years. Growth in renewable energy generation is expected to taper to 7% this year due to lower hydroelectric generation, before rebounding with 11% growth next year, according to IEA estimates.
“The IEA says that by 2024, renewable energy shares in global electricity generation will exceed one-third of all generation for the first time,” the agency said.
With demand shrinking in 2023, the growth in renewable energy generation alone is expected to cover the full increase in additional demand, and the same will happen in 2024.
Original article published on Money.it Italy 2023-07-26 07:00:00. Original title: Crollo del consumo dell’energia elettrica. La causa? Siamo in recessione
