Electricity is “the new oil” says IEA
This overlooks the fact that ‘the majority of petroleum is converted to petroleum products, which includes several classes of fuels’. It also includes ‘conventional fertilizers [which] are commonly derived from petroleum. In fact, a single 40-pound bag contains the equivalent of 2.5 gallons of gasoline.’ Electricity is only a manufactured power source, as far as national networks are concerned.
Electricity is “the new oil” and the effect of increasing global electrification is having a “very deep rippling effect for the power sector”.
That was one of the highlights this morning at the launch of the International Energy Agency’s annual World Energy Outlook, reports PEI.
Laura Cozzi, head of the IEA’s Energy Demand Outlook Division, said: “We are seeing growing electrification happening throughout the energy sector – electricity going into sectors that were confined to other fuels before: most notably, cars, but also heating and cooling.”
She said this “leads us to improved prospects for affordability, with cheaper energy sources available throughout the energy sector”.
And she stressed that “now, more than ever, there is a need to understand where the energy world is heading. Policymakers and industry alike need to understand how quickly this new transformation is going to go through every part of the energy scene.”
“It is like going to a play where you know the script very well, but suddenly the actors are changing their characters – and you are surprised by some the changes that you are seeing.”
Cozzi said that in the move towards a world that is increasingly electrified, China and India were key players. To try to put some perspective on the scale of electricity growth in Asia, Cozzi said that in the next five years “India is going to add one European Union to its electricity sector – China is adding one United States”.
Continued here.
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