Global electricity demand in 2022 will return to the average pace of the five years before the COVID-19 pandemic – increasing by 2.4% after rising by 6% in 2021, the International Energy Agency (IEA) predicts.
“Global electricity demand is expected to grow by 2.4% in 2022 after increasing by 6% last year, bringing it to the average growth rate of the five years before the COVID-19 pandemic,” the IEA wrote in the July Electricity market report.
At the same time, most of the global electricity demand increase will be in the Asia-Pacific region, primarily in China.
The agency notes that the sharp decline in demand growth in 2022, after its strong recovery in the previous year, was caused by the weakening of economic growth in the world, as well as a jump in energy prices after the start of the Russian special operation in Ukraine.
According to the report, the increase in renewable energy capacity in the world in 2022 should increase energy production from renewable sources by more than 10%, displacing part of the production from fossil fuels.
In addition, the use of coal for electricity generation is expected to increase slightly in 2022, as growth in its use in Europe is offset by declines in China and the US.
At the same time, the agency refrains from making accurate forecasts for 2023 due to uncertainty around global economic growth and fossil fuel prices.
“As of mid-2022, we expect global electricity demand growth in 2023 to remain on the same trajectory as this year. The IEA notes that a robust 8% growth in renewables and a recovery in nuclear could displace some gas and coal “.