IEA: EU energy demand to fall 10% in 2020

montelnews.com International 2020-06-29 08:59:46

The Covid-19 pandemic and associated lockdowns will reduce 2020 EU energy demand by 10% from last year, almost double the decline seen during the 2008-09 financial crisis, according to the International Energy Agency (IEA).


The pandemic had already resulted in a 5% decline in the bloc's energy demand during the first quarter, the agency said in its latest energy policy review.


"EU electricity demand has declined and remains sluggish by June 2020 despite the need for electricity in hospitals and residential sectors," it said.


It noted average weekday electricity demand for services had declined "considerably".


"In Italy, the hardest-hit country in Europe, declines reached 75% relative to the same period in 2019," it added.


The IEA said also that with lower power demand, coal and gas power plants were running fewer hours and the share of renewable energy had increased rapidly.


This had led in some instances to negative electricity prices in EU wholesale markets.


Coal decline

Meanwhile, the IEA projected coal demand will drop by a fifth this year, "with industrial production largely on hold".


EU coal demand in the first three months dropped by 20%, year on year, it said, adding the bloc has experienced the largest reduction in nuclear generation compared with other countries during the lockdown period.


"Gas demand in the EU also declined – amid a milder winter – but proved rather resilient, as gas is mainly used for heating and global gas prices reached a record low in the first half of 2020," it said.


Emissions targets

At the same time, while reduced usage of fossil fuels enabled the EU to cut energy-related carbon emissions 8% in the first quarter, this "should not lead to complacency", the IEA said.


"While these trends could enable the EU to meet its 2020 targets for renewable and energy efficiency, … investment in renewable energy is set to decline by one-third in 2020, compared to 2019."


It noted this would be an historic decline for the EU, pointing in particular to a 50% decline in solar power investment.


"The rebound in emissions and energy use is expected to be high, supported by very low global commodity prices," it said.


As such, the agency said the EU was not yet on track towards the targeted increase of the renewables share to 32% by 2030.


"Today's 2030 targets will require a significant system transformation," it said.


"The EU should therefore accelerate the implementation of the current policies and regulations, while considering the need for new EU policies," it said.


(Writing by Becky Du  Editing by Tammy Yang)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 Participants see slim chances for China coking coal rebound 2020-08-05

Participants expected China's coking coal market would less likely to pick up over the shorter run citing poor supply-demand fundamentals. Overall, coking coal supply remained in a glut a

2 China Coal Daily Track (Aug 5) 2020-08-05

Thermal coal Production area Heavy rain in Shaanxi province affected local coal production and drove up auction prices by 10-20 yuan/t at some mines, but most mines kept prices stable.

3 Chinese portside thermal coal market drifts lower 2020-08-05

Chinese domestic thermal coal prices continued to fall at northern transfer ports, dented by thin buying interest from end users whose coal inventories were abundant. Offer prices of 5,50

4 Uncertain Indian market dents confidence of Indonesian thermal coal sellers 2020-08-05

Indonesian thermal coal sellers pinned hopes on a recovery of Indian market with a large share of 25% given thinner chance for China's relaxation of import curbs, but the hope is faltering alongside g

5 China Jul coke market: price wrestling continues after 3 rounds of decline 2020-08-05

Chinese domestic coke market suffered three rounds of price declines in July due to the weakened supply-demand fundamentals. Coke producers started to deter the fourth round to protect their profit

6 China's thermal coal market may brace for a mild decline in Aug 2020-08-05

Chinese spot thermal coal market is expected to brace for a mild decline in August, said many participants, given still lackluster buying demand from utilities and their destocking moves this month.

7 Will Chinese coal cos embrace improved profits in H2? 2020-08-05

Chinese coal companies had a difficult time in the first half of 2020, and will a difference be made in the second half? The latest data from China National Coal Association showed coal m

8 China coking coal market still lacks support 2020-08-04

China's coking coal market still lacked support from both supply and demand sides. Capacity utilization at mines remained high while buying interest tapered from coking plants. Capacity u

9 Australian thermal coal price logs a 27% yearly drop despite similar demand shrink 2020-08-04

Australian high-ash thermal coal price was subject to a nearly 27% year-on-year decline, although the price was also in a 20-day downside starting from July 24 last year due to similar demand shrink,

10 Chinese domestic thermal coal falls on thin buying; bearish sentiment prevails 2020-08-04

Chinese domestic thermal coal prices declined again after holding stable for less than a week, as demand was still tepid in August, which is supposed to be the busy season for the market, fueling the

Most Read Articles

1 Indonesian thermal coal prices slide amid poor demand 2020-07-31

Indonesian thermal coal prices began to fall again in the Chinese seaborne import market, driven down by lackluster buying interest from end buyers. The drop was mainly seen among offer p

2 NEA plans to quit over 7 GW "zombie" coal-fired power units this yr 2020-07-30

China's National Energy Administration plans to cut down a total 7.33 GW of "zombie" coal-based power capacity in 2020, to further streamline the industry structure and improve air quality, according

3 China to revise coal law to reinforce marketization 2020-07-30

China's state planner on July 29 issued a draft to revise the coal law, to further improve the market-oriented mechanism. The National Development and Reform Commission, the state plannin

4 China's thermal coal market weakness looms large on sparse demand 2020-07-31

Chinese spot thermal coal market started softening ahead of top miner's term contract price adjustments in early August, as a week of demand shrink further dimmed near-term prospect and spurred more s

5 Chinese import thermal coal market remains dull, bearish sentiment simmering 2020-07-30

Chinese seaborne import market of thermal coal was still stagnating with broadly no trades seen over the trading day, further darkening the outlook among traders. For Indonesian 3,800 Kca

6 Coal smuggling increases driven by interest 2020-07-30

Cases of coal smuggling frequently appeared in China recently, driven by huge profit as the price spread reached up to 200 yuan/t between imported and domestic coal. Within only one week

7 Portside trading interest stays thin for thermal coal at N China ports 2020-07-30

Little trading demand emerged for spot thermal coal at China's Bohai-rim ports, although prices stayed stable for a week. The market may extend the steadiness to end-July at least amid utilities' prud

8 Rio Tinto H1 underlying earnings down 4%, but still better than expectation 2020-07-30

Leading global mining group Rio Tinto logged a 4% yearly drop in underlying earnings to $4.75 billion in the first six months of 2020, according to a report of the company on July 29. It,

9 Weekly China coal market news summary (Jul 27-Jul 31) 2020-07-31

15 coal cos on Fortune China Top 500 list A total of 15 listed coal enterprises have taken positions on Fortune's Top 500 Chinese Enterprises list this year, according to the ...

10 Cerrejon expects coal exports to decline 21% in 2020 2020-07-30

Cerrejon, one of Colombia's large coal exporters, forecast its coal exports in 2020 to drop around 21% year on year to 20.5 million tonnes, it said on July 27. It was lowered from origina

Scan to download sxcoal.com mobile APP

X