The International Energy Agency (IEA) has predicted that a major fall in demand for fuel, related to the global response to Covid-19, will hit oil, coal and gas producers hard while renewables continue to grow.  The global watchdog says that while the plummet in energy use has seen demand for fossil fuels nosedive, “renewables are holding up”.

With renewables being more resilient to such market collapse, it is likely that more energy producers will switch from coal, oil and gas in favour of solar, wind and other green sources in the near future in order to survive, the IEA reported.  Renewable energy is expected to grow by 5% in 2020 to account for 30% of the world’s electricity supply – its biggest ever proportion.

“It is still too early to determine the longer-term impacts, but the energy industry that emerges from this crisis will be significantly different from the one that came before,” said IEA’s executive director, Fatih Birol.

Oil prices became negative for the first time in the US’s history in March 2020, meaning producers were having to pay for it to be taken off their hands after running out of storage space.  Meanwhile, gas demand is expected to fall 5% in 2020 following 10 years of continuous growth, with coal falling 8% – the biggest declines for these two fuels since the mid-1900s.

The IEA added that governments should take advantage of the unprecedented mixed fortunes of renewables and fossil by putting policies in place to ensure a green energy market recovery.

further reading…

The International Energy Agency (IEA) has predicted that a major fall in demand for fuel, related to the global response to Covid-19, will hit oil, coal and gas producers hard while renewables continue to grow.  The global watchdog says that while the plummet in energy use has seen demand for fossil fuels nosedive, “renewables are holding up”.

With renewables being more resilient to such market collapse, it is likely that more energy producers will switch from coal, oil and gas in favour of solar, wind and other green sources in the near future in order to survive, the IEA reported.  Renewable energy is expected to grow by 5% in 2020 to account for 30% of the world’s electricity supply – its biggest ever proportion.

“It is still too early to determine the longer-term impacts, but the energy industry that emerges from this crisis will be significantly different from the one that came before,” said IEA’s executive director, Fatih Birol.

Oil prices became negative for the first time in the US’s history in March 2020, meaning producers were having to pay for it to be taken off their hands after running out of storage space.  Meanwhile, gas demand is expected to fall 5% in 2020 following 10 years of continuous growth, with coal falling 8% – the biggest declines for these two fuels since the mid-1900s.

The IEA added that governments should take advantage of the unprecedented mixed fortunes of renewables and fossil by putting policies in place to ensure a green energy market recovery.

further reading…