July 19, 2024
ENERGY CRISIS: Global electricity demand to rise in 2024 — IEA
ENERGY CRISIS: Global electricity demand to rise in 2024 --- IEA
– By Alison Godswill

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ENERGY CRISIS: Global electricity demand to rise in 2024 — IEA

By Eyo Nsima

The International Energy Agency, IEA, forecast has it that the global electricity demand will ease in the remaining part of 2023, but rise again in 2024.

In its latest report – Electricity Market Report Update Outlook for 2023 and 2024 – obtained by The Daily, www.thedaily-ng.com, the IEA, stated: “Global electricity demand growth is expected to ease in 2023 before accelerating in 2024. Demand is expected to grow by slightly less than 2% in 2023, down from a rate of 2.3% in 2022 and the average annual growth rate of 2.4% observed over the 2015-2019 period. This moderation is strongly driven by declining electricity demand in advanced economies, which are dealing with the ongoing effects of the global energy crisis and slower economic growth.

“In 2024, as expectations for the economic outlook improve, global electricity demand growth is forecast to rebound to 3.3%. Electricity demand in the European Union is set to decline in 2023 for the second year in a row, falling to its lowest level in two decades. EU electricity demand is expected to record a 3% drop in 2023, after already falling 3% in 2022.

“This is despite strong growth in electrification with a record number of electric and heat pumps sold. Following these two consecutive declines, which together amount to the region’s largest slump in demand on record, EU electricity demand is set to drop to levels last seen in 2002.

“Europe’s energy-intensive industries have not yet recovered from last year’s production slump, as evidenced by the staggering 6% year-on-year decline in total EU electricity demand during the first half of 2023. Almost two-thirds of the net reduction in EU electricity demand in 2022 is estimated to be from energy-intensive industries grappling with elevated energy prices. This trend has continued well into 2023, despite the prices for energy commodities and electricity falling from their previous record highs. As policy developments abroad courting industrial investment put pressure on Europe’s industrial competitiveness, the European Union is at a crossroads. The outcome of policy discussions now underway could determine the future of its energy-intensive industrial sector.

“The substantial demand declines in advanced economies contrast sharply with the growth observed in emerging economies such as China and India. Japan is similarly expected to record a significant 3% fall in electricity demand in 2023, while the United States is set to see a decrease of almost 2%. In contrast, China’s electricity demand is expected to increase by 5.3% in 2023 and 5.1% in 2024, slightly below its 2015-2019 average of 5.4%. India is set to have an average annual growth rate of 6.5% over the outlook period, surpassing its 2015-2019 average of 5.2%.”

See the link below for the full report

https://thedaily-ng.com/wp-content/uploads/2023/07/ElectricityMarketReport_Update2023.pdf

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