GLOBAL ENERGY REVIEW 2020

GLOBAL ENERGY REVIEW 2020

The Global Energy Review 2020 Report has been recently released by International Energy Agency (IEA) highlighting the major energy demands of the present.

GLOBAL ENERGY REVIEW 2020

GS Paper II: Important International institutions, agencies and fora- their structure, mandate.

Context: The Global Energy Review 2020 Report has been recently released by International Energy Agency (IEA) highlighting the major energy demands of the present.

GLOBAL ENERGY REVIEW 2020


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Key Findings of the Global Energy Review 2020 Report

  • As per the 2020 report, the global energy demand is projected to fall 6% in 2020. This will be steepest decline in percentage terms in 70 years and the largest ever in absolute terms.
  • Except renewable sources, all other fuels 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.
  • Report projected that the advanced economies will experience the greatest declines in energy demand in 2020.
  • The report highlighted that for 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% or 9 million barrels per day on an average across the year, returning oil consumption to 2012 levels.
  • Global coal demand is projected decline by 8%, in large part because electricity demand will be nearly 5% 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.

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PRELIMS Background Bites

International Energy Agency (IEA)

It was established in 1974 as per framework of the OECD, IEA is an autonomous intergovernmental organisation. It is headquartered in Paris, France.

MISSION: Its major mission is 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
  • Engagement worldwide
ROLES AND FUNCTIONS OF INTERNATIONAL ENERGY AGENCY (IEA)
  • 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 OF IEA
  • 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.
VARIOUS REPORTS PUBLISHED BY IEA
  • World Energy Outlook.
  • Global Energy & CO2 Status Report.
  • World Energy Statistics.
  • Energy Technology Perspectives.
  • World Energy Balances.

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