Renewables

Low costs boost demand for renewables during coronavirus crisis

Costs demand renewables coronavirus

Photo: Pixabay

Published

May 5, 2020

Country

Comments

0

Share

Published:

May 5, 2020

Country:

Comments:

0

Share

Green energy has been the most resilient to the effects of lockdowns worldwide, said Dave Turk, Acting Deputy Executive Director of the International Energy Agency. The demand for renewables is seen growing 1% this year, while the coronavirus impact may push the level in the overall energy sector as much as 6% lower, according to the annual review.

Sourcing the cheapest energy sources possible may not be the best solution for the medium and long term for the security of supply, Acting Deputy Executive Director of the International Energy Agency Dave Turk warned governments. He said at a webinar organized by WindEurope that 50% of energy usage worldwide has been exposed to the ongoing pandemic containment measures. However, the IEA found the demand for renewables is on track to rise 1% this year while that the coronavirus crisis is devastating the other market segments.

When it comes to greenhouse gases and pollution, a huge rebound and the return to a rising trend for fossil fuels mustn’t be allowed, Turk stressed. In comparison to renewable energy sources, the demand for coal is seen plunging 8% in 2020, according to the agency’s latest global review.

The demand for renewables may strengthen 1% in 2020 and energy output in the sector is seen expanding 5% while other market segments are hit due to the impact of the coronavirus pandemic on consumption

Renewables have proven to be “the most resilient” in the first quarter due to the fall in costs for the technology in recent years, the IEA’s deputy chief pointed out. Total energy demand is estimated to decrease by up to to 6% depending on the pace of recovery and the possibility of a second wave of the pandemic. The plunge in the first trimester was 3.8% on an annual scale.

The dynamic in green energy has become much different with regard to competitiveness but also prices, Turk underscored and added the increased stability enables investment planning on a longer run than before.

As for carbon dioxide (CO2) emissions, they are projected to drop 8% or 2.6 gigatons this year, to 30.6 gigatons. The volume would be the largest ever and such a contraction in percentages hasn’t happened in more than seven decades. In the wake of the global financial crisis a decade ago, emissions of the greenhouse gas fell by only 0.4 gigatons.

Green energy is becoming more appealing with time as the technology is becoming cheaper and prices are stabilizing

It is “time for government leadership” toward storage solutions, particularly electrolysis and clean hydrogen, which must become competitive, according to Turk.

Turning to developing world, including Africa and Southeast Asia, he asserted the demand for electricity is growing at a rapid rate. The IEA official stated the change in human behavior like with teleworking and teleschooling is “sticky” to an extent and that it marks the trend. The trajectory for India shows it would require the expansion of the national grid at the current size of Europe in the next ten years, he said.

IEA’s Turk says states need to back efforts to make electrolysis and clean hydrogen competitive

Of note, the agency estimated power demand would shrink by 5% this year while that output in the renewables sector is going to rise by 5% compared to the year-on-year growth of 3% in the first quarter, as the coronavirus pandemic struck.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

22 countries COP28 tripling nuclear capacity by 2050

22 countries commit at COP28 to tripling nuclear capacity by 2050

04 December 2023 - At COP28, heads of state and other top officials from 22 countries signed the Declaration to Triple Nuclear Energy by 2050

Mitsotakis In face climate devastation new Greece emerging

Mitsotakis: In face of climate devastation, new Greece is emerging

04 December 2023 - Highlighting this year's catastrophic wildfires and floods, PM Kyriakos Mitsotakis said at COP28 that a new Greece is emerging nevertheless

federation bih electrcity prices 2024 cap

Electricity price growth for businesses in FBiH capped at 20% for 2024 – prime minister

01 December 2023 - The Government of the Federation of Bosnia and Herzegovina has declared a state of power supply emergency for 2024

slovenia fee municipalities wind farms

Municipalities in Slovenia to get EUR 200,000 per MW of installed wind farm capacity

01 December 2023 - Incentives are another attempt to speed up wind farm projects in Slovenia, which hosts only three wind turbines