Topics Covered: Infrastructure- energy.
Global Energy Review 2020
What to study?
For Prelims: Key findings.
For Mains: Concerns and challenges expressed, ways to address them.
Context: International Energy Agency (IEA) has released its Global Energy Review 2020 report.
Key findings:
- Global energy demand is projected to fall six per cent in 2020.
- This will be steepest decline in percentage terms in 70 years and the largest ever in absolute terms.
- All fuels except renewables are set to experience their greatest contractions in demand for decades.
- The projected 6% decline would be more than seven times the impact of the 2008 financial crisis on global energy demand, reversing the growth of global energy demand over the last five years.
- According to the report advanced economies will experience the greatest declines in energy demand in 2020.
- In India, energy demand would decline for the first time, following on from low demand growth in 2019.
- Global oil demand in 2020 is projected to drop by 9 per cent or 9 million barrels per day on an average across the year, returning oil consumption to 2012 levels.
Global coal demandis projected decline by 8 per cent, in large part because electricity demand will be nearly 5 per cent lower over the course of the year. - Global Electricity Demand has been declined by 20% during periods of full lockdown in several countries. However, the residential demand is outweighed by reductions in commercial and industrial operations.
What next?
According to IEA, if lockdowns are shorter and the global recovery is more rapid, the decline in global energy demand across 2020 could be limited to 3.8 per cent, which is still four times the decline during the global financial crisis.
About IEA:
Established in 1974 as per framework of the OECD, IEA is an autonomous intergovernmental organisation.
MISSION – To ensure reliable, affordable and clean energy for its member countries and beyond.
Its mission is guided by four main areas of focus: energy security, economic development, environmental awareness and engagement worldwide
Headquarters (Secretariat): Paris, France.
Roles and functions:
Established in the wake of the 1973-1974 oil crisis, to help its members respond to major oil supply disruptions, a role it continues to fulfill today.
IEA’s mandate has expanded over time to include tracking and analyzing global key energy trends, promoting sound energy policy, and fostering multinational energy technology cooperation.
Composition and eligibility:
It has 30 members at present. IEA family also includes eight association countries.
A candidate country must be a member country of the OECD. But all OECD members are not IEA members.
To become member a candidate country must demonstrate that it has:
- Crude oil and/or product reserves equivalent to 90 days of the previous year’s net imports, to which the government has immediate access (even if it does not own them directly) and could be used to address disruptions to global oil supply.
- A demand restraint programme to reduce national oil consumption by up to 10%.
- Legislation and organisation to operate the Co-ordinated Emergency Response Measures (CERM) on a national basis.
- Legislation and measures to ensure that all oil companies under its jurisdiction report information upon request.
- Measures in place to ensure the capability of contributing its share of an IEA collective action.
Reports:
- Global Energy & CO2 Status Report.
- World Energy Outlook.
- World Energy Statistics.
- World Energy Balances.
- Energy Technology Perspectives.
Insta Links:
Prelims Link:
- Various reports released by IEA.
- Composition of OECD and OPEC? Who can become members?
- Top crude oil producers and importers globally?
- Who are associate members of IEA?
- What kind of IEA member is India?
Mains Link:
Write a note on objectives and functions of the International Energy Agency.
Sources: ET.
