COVID-19 accounts for more oil market disruption in history – IEA

*Says solar to become world’s “new king” of energy

OpeOluwani Akintayo

Lagos — It has been a tumultuous year for the global oil industry, as the Covid-19 crisis has caused more disruption than any other event in recent history, the International Energy Agency, IEA has said in its report, World Energy Outlook 2020.

The Agency said the crisis has left “scars” that will last for years to come, adding that whether this upheaval ultimately helps or hinders efforts to accelerate clean energy transitions and reach international energy and climate goals will depend on how governments respond to today’s challenges.

The World Energy Outlook 2020, the International Energy Agency’s flagship publication, focuses on the pivotal period of the next 10 years, exploring different pathways out of the crisis.

The new report provides the latest IEA analysis of the pandemic’s impact: global energy demand is set to drop by 5% in 2020, energy-related CO2 emissions by 7%, and energy investment by 18%.

Unlike OPEC, IEA says renewables take starring roles in all its scenarios, with solar at the centre stage.

“Supportive policies and maturing technologies are enabling very cheap access to capital in leading markets. Solar PV is now consistently cheaper than new coal- or gas-fired power plants in most countries and solar projects now offer some of the lowest-cost electricity ever seen.

In the Stated Policies Scenario, the Agency says renewables will meet 80% of global electricity demand growth over the next decade.

“Hydropower remains the largest renewable source, but solar is the main source of growth, followed by onshore and offshore wind”.

News  Fueling a low carbon future with methanol as a marine fuel

“I see solar becoming the new king of the world’s electricity markets. Based on today’s policy settings, it is on track to set new records for deployment every year after 2022,” said Dr. Fatih Birol, the IEA Executive Director.

“If governments and investors step up their clean energy efforts in line with our Sustainable Development Scenario, the growth of both solar and wind would be even more spectacular – and hugely encouraging for overcoming the world’s climate challenge,” he said.

According to him, the era of global oil demand growth will come to an end in the next decade.

“But without a large shift in government policies, there is no sign of a rapid decline. Based on today’s policy settings, a global economic rebound would soon push oil demand back to pre-crisis levels,” he said.

Appeared on SweetCrude

Be the first to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.