Most estimates suggest that the pandemic will last until beyond the summer of 2020, resulting in an immediate impact on the economy and energy system lasting several months.
Short-term Impacts
Over the course of the lockdown, we have seen significant impacts on the energy system and the energy sector more broadly. In the months to come, we are likely to see reductions in all major fuel use, as a result of the restrictions. An overview of fuel use by sector (Table 1) illustrates how consumption is likely to fall across the economy, apart from the residential sector. As individuals spend a greater share of their time at home, domestic electricity and gas use is likely to increase, as a result of lighting, cooking, and appliances. Most obviously, the travel restrictions have meant that there has been a significant reduction in the use of public and private transport. As a result, fuel demand for transport has dropped significantly. Compared to March 2019, the total consumption of petroleum products has dropped by nearly 20 per cent for March 2020. Within these products, we can see that demand for aviation turbine fuel for aeroplanes has dropped by over 30 per cent and the range of fuels used for road transport have all fallen between 20 per cent and 30 per cent (Figure 1). Were we to have data just showing the period since lockdown, we can expect the difference to be much greater.
This story is from the May 2020 edition of TerraGreen.
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This story is from the May 2020 edition of TerraGreen.
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