IEA predicts growth in global electricity demand this year

Global electricity demand is set to grow by close to 5% in 2021, and by 4% in 2022, Report informs, citing the Electricity Market Report of the International Energy Agency (IAE).

"Global electricity demand will rebound strongly in 2021 and 2022. After falling by around 1% in 2020, global electricity demand is set to grow by close to 5% in 2021 and by 4% in 2022," the document reads.

The agency notes that the majority of these increases will take place in the Asia Pacific region, primarily China and India.

According to the IEA, the electricity demand in Russia rose dramatically in early 2021. After a 3% drop in 2020, in the first four months of this year, the demand was 2.8% higher than in 2019. The agency said they expect the demand to rebound to recent tendencies and grow by about 1% in 2022.

After expanding by 7% in 2020, electricity generation from renewables is forecast to increase by 8% in 2021 and more than 6% in 2022.

Despite these rapid increases, renewables are expected to be able to serve only around half of the projected growth in global demand in 2021 and 2022. Nuclear power generation will grow by around 1% in 2021 and by 2% in 2022.

According to the IEA, fossil fuel-based electricity is set to cover 45% of additional demand in 2021 and 40% in 2022. Active use of fossil fuels, especially coal, will lead to an increase in CO2 emissions. According to the agency, after falling by 1% in 2019 and by 3.5% in 2020, CO2 emissions from the electricity sector are forecast to increase by 3.5% in 2021 and by 2.5% in 2022, which would take them to an all-time high.

"Coal-fired electricity generation, after declining by 4.6% in 2020, will increase by almost 5% in 2021 to exceed pre-pandemic levels. It will grow by a further 3% in 2022 and could set an all-time high," the report said.