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Coronavirus To Reshape The Future Of Energy

A Paris-based agency gave a statement that the Covid-19 crisis has caused more disruption than any other event in recent history, leaving scars that will last for years to come. The Covid-19 crisis has made the countries face recession. When the economies are falling continuously, it has become difficult to differentiate between developed and developing countries. With some countries facing more and some less of Covid-19, from bigger corporations to small-scale industries, all are changing traditional business concepts and strategies and bringing to lookout some new ones that are the requirements of this situation. 

Statement By International Energy Agency

Amid all industries building new concepts with the outcomes of the crisis still uncertain, talking about the future the International Energy Agency (IEA) said in an annual report that Coronavirus response can reshape the future of energy. The report also states that solar energy will take “center stage” and renewables will be taking “starring roles”. The coal demand will not resume in the way as it was in the pre-crisis stage, and after the Industrial Revolution, energy consumption will be less than 20% by 2040 for the first time.

More Insights To The Report Are

  • The oil will remain vulnerable to the major economic uncertainties emerging from the pandemic, and demand will start declining after 2030
  • IEA reports that solar energy will emerge as the center of the world’s electricity markets.
  • Global energy demand is expected to fall at a rate of 5% in 2020.
  • A fall in oil and coal consumption is expected by 8% and 7%, respectively
  • A fall of 3% expected this year in Natural Gas demand, it will be the highest fall after it became a major fuel source in the 1930s.

The report pronounced in the “Stated Policies Scenario” that Covid-19 will be controlled in 2021 and energy demands will go back to their original levels in 2023, on the other hand, the “Delayed Recovery Scenario” points at a slower economic healing and energy demands not going to attain pre-crisis stage until 2025. The agency gave this revised outlook after the one given in April that stated that the energy demand could drop by 6% in 2020. The IEA report stressed the impact of Covid-19 on the energies and the shifts it would bring in the coming years.

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