The world’s electricity demand growth will slow sharply in 2022 after a strong recovery in 2021 as economic growth weakens and energy prices soar, according to the International Energy Agency (IEA)’s latest report.
Global electricity demand is expected to rise by 2.4 percent in 2022, compared to the 3 percent predicted in January.
Growth is expected to remain stable in 2023, after falling by 6 percent in 2021, in line with the five-year average prior to the Covid-19 pandemic.
Strong capacity additions are set to push up global renewable power generation by more than 10 percent in 2022, displacing some fossil fuel generation. Low-carbon generation is set to rise by 7 percent overall, leading to a 1 percent drop in total fossil fuel-based generation.
Electricity prices are witnessing significant increases as a result of the surge in international oil prices against the backdrop of the Russian-Ukrainian conflict.
The monetary policies pursued by central banks around the world to control inflation raise serious concerns about a global economic downturn, which will affect demand for all types of energy.
The International Monetary Fund (IMF) is expected to lower its global economic growth forecast for the third time later this month, according to IMF Managing Director Kristalina Georgieva, who made the announcement about two weeks ago.
According to the IMF’s most recent forecast, the global economy will grow by 3.6 percent this year, compared to 6.1 percent in 2021.
