The International Energy Agency has recently revived its global annual outlook on the future of the energy sector just this month. This new information is necessary as the entire planet reels not just from the health impact of the coronavirus pandemic but also its effects on all economies and the subsequent industries that help them thrive.
In this article, we’re taking a closer look at just how COVID-19 has affected the energy sector and what it means for the industry in the next couple of years.
Pandemic’s Effect on Energy Demand and Consumption
Here’s the reality. With the majority of the citizens of the world urged (and sometimes forced) to stay indoors due to the threat of the deadly virus, it impaled the oil industry, which is directly related to the most part of the energy sector.
While power consumption at home jumped to an all-time high, limiting mobility also meant limiting the access and use of other buildings and areas that would usually use large amounts of power. This is all the more evident in factories shuttered due to a lack of business all over the world. The coal industry that also fueled electricity was terribly hit by the pandemic as China is currently the world’s largest coal-based economy.
That’s why the IEA predicted that electricity demand on a global scale will drop a whopping 5%. This is something never before seen since the Great Depression.
The Good it Did to Mother Earth
While humans are suffering from the virus that is plaguing mankind all over the world, the environment is somehow recuperating because of the minimized movement of people. For one, the diminished use of fuel because of the lack of mobility, especially through planes and other aircraft, caused a significant drop in this year’s carbon footprint.
This also caused the largest drop in carbon dioxide emissions ever recorded since World War II ended. What’s more interesting is that the decline in carbon emissions is expected to continue until the end of the year, which is, of course, a good way to help slow down the harmful effects of humans on our planet.
Plus, we see nature taking its time healing, with trending news of animals starting to go back to the wild and explore the world as humans retreat to their homes in fear of the virus.
The Rise of Renewables
Out of all the gloomy figures seen, not only in the energy sector but even in other industries, IEA believes that this will be a great year for the renewables space. IEA says demand is expected to rise due to the relatively low cost of operations of such businesses. It’s cheaper than other electricity sources, which will help businesses save money while we’re on a pandemic. The agency insists that the green energy sector is resilient during the COVID-19 crisis and will be seeing growth no matter how fast or slow economic recovery is all over the world. Why? The IEA states that simply put, the global health crisis has stressed the importance of a reliable, affordable, and secure electricity source while at the same time not contributing to the further degradation of the planet.
The group goes as far as saying that renewable energy will overtake coal in just 5 years as the primary means of electric generation. IEA also noted that by 2030, solar, wind, hydro, bioenergy, geothermal energy will be able to provide the needs of around 40% of the total population in the entire world.
Leading the Charge
As the most convenient way of generating clean energy, it’s not surprising to learn that solar energy is leading the renewables space in terms of innovations and expansion. We concur with the forecast that 10 years from now, solar energy will be able to provide at least 13% of the world’s power needs.
But there is no need for you to wait that long. In fact, you can already invest in the environment and in your family’s power needs by putting up your own solar panels or subscribing to community solar companies that provide solar power without the added installation cost. If this is the first time you’re hearing this piece of information, check out the community solar guide to find out more.
If there’s anything that you should learn from this article, it is the fact that renewables are the future. You can bet that decades from now, coal will be obsolete and our planet will finally be powered by renewable energy alone. But you don’t need to wait that long. You can start doing that today.
