The Covid-19 Pandemic has brought the global economy to a halt everywhere across the planet, most governments have enforced lockdown and social distancing throughout particular states or provinces and also in some cases, nationwide.
Demand for electricity during Covid-19 Pandemic
The restriction on economic activity has resulted in decreased demands for oil and gas as well as electricity. The demand for electricity has fallen by around 5-10%, this year from the previous year at this same time. Covid-19 pandemic has also impacted the supply of electricity and has also resulted in a large reduction in greenhouse gas and air pollution.
Electricity prices have also fallen due to self-quarantine and social distancing resulting in reduced economic activities. The prices of other energy commodities like Oil, LNG, and coal have also fallen due to reduced demand leading to lower electricity prices as well.
Effects on electricity production during Covid-19 Pandemic
The impact of the coronavirus crisis on electricity production and operational activities has been far-reaching, to say the least, with many power projects being placed on hold or being canceled due to uncertainty.
The overall situation has led to a fall in utility revenues in many countries and many have already started to send their workers to home due to the economic downturn caused by the Covid-19 pandemic.
This crisis is reshaping our electricity markets as we try to diversify our energy supplies and prioritize system reliability and resilience through better coordination.
The coronavirus crisis and the indispensable role of electricity
The novel coronavirus (COVID-19) pandemic has given rise to an unprecedented international crisis. It has had serious impacts on global economic activity and resulted in recovery efforts through stimulus packages from countries across the globe.
In most countries electricity provide an indispensable role in our everyday life. As most people are locked in their homes and are teleworking to make social distancing work. We are witnessing a society which has become dependent on digital technology and the energy used to power this digital technology we take for granted today is none other than electricity.
Access to electricity is critical in order to fight this pandemic as medical equipment and emergency services depend on them. The future of electricity after the coronavirus crisis will evolve as this crisis has taught us the extensive and expanding role that electricity plays in our everyday life.
The future of electricity and our economic recovery
The future of electricity and our economic recovery after the coronavirus crisis depends on meeting the long term carbon reduction goals to avoid climate change and to bring back sustainable economic growth.
We should harness the power of clean energy sources like renewable energy to bring back sustainable economic growth. We have to transition ourselves and commit to clean energy through pursuing energy efficiency policies that have already been successful in creating jobs, reducing energy costs and protecting the environment for the future.
The future of electricity after the coronavirus crisis depends on our ability to individually and at government level to prioritize the use of sustainable clean energy sources and to better protect ourselves from future environmental and economic crisis.
Although there has been a global decline in the consumption of petroleum and liquid fuels in the first quarter of 2020 due to the COVID-19 pandemic but according to the U.S. Energy Information Administration (EIA) Net crude oil imports is going to increase due to the decline in U.S. crude oil production in the third quarter of 2020.
The U.S. Energy Information Administration (EIA) also forecasts that commercial consumption of natural gas and residential consumption of natural gas are both to decrease in 2020 from 5.8% to 7.1% respectively. This is due to warmer than normal weather as well as due to a slowing economy.
The economic slowdown and the stay at home orders will also affect the U.S. electricity consumption especially in the commercial sector due to closure of many businesses leading to a 4.2% fall in retail sales of electricity to the industrial sector in 2020 according to one forecast of the U.S. Energy Information Administration (EIA).