Tempos of Electricity Consumption Reduction in the EU Set Historical Records
New data from the International Energy Agency (IEA) indicates that the overall electricity consumption in the European Union for 2023 is projected to decrease by 6%, marking the lowest level in the past 20 years.
This information was reported on the official website of the International Energy Agency (IEA).
"It is anticipated that the demand for electricity in the EU will decline by 3% in 2023, following a 3% drop already observed in 2022. After these two consecutive declines, which together represent the largest decrease in electricity demand in the region's history, electricity consumption in the EU will reach the level last observed in 2002," the Agency's statement reads.
Thus, the first half of 2023 has become record-breaking, as the cumulative two-year decrease in electricity consumption in the European Union reached 6%.
The primary factors leading to the decrease in electricity demand remain the rising energy prices and the economic slowdown of European economies.
At the same time, the IEA notes that this trend poses a threat to the competitiveness of European industry, as production volumes are still lagging behind, despite this year's price decrease compared to 2022.
The IEA also highlighted that certain policy decisions, such as the US Inflation Reduction Act (IRA) and Japan's "Green Transformation" Act, are impacting production cutbacks, plant closures, and the redirection of investments.
Despite this, the global trend of increasing worldwide demand for electricity continues to grow due to the decarbonization of energy systems.
"It is expected that electricity demand in China will increase by 5.3% in 2023 and by 5.1% in 2024, which is slightly lower than the average rate of 5.4% during 2015-2019. In India, the average annual growth rate will be 6.5% during the forecast period, exceeding the 5.2% average rate during 2015-2019."
Finally, the IEA emphasizes that the recovery of electricity demand in the EU is projected to occur in 2024, which is expected to be the first year when the world will generate more electricity from renewable sources than from coal.