Energy International Energy Agency: Energy prices will remain high for several years unless the industry implements major reforms

Energy Demand is growing around the world, which could keep energy prices higher than usual for several years, warns the International Energy Agency (IEA).

According to the IEA, the growth rate of energy demand last year was more than six percent, the highest in a decade. In terms of volume, energy demand grew more than ever, by more than 1,500 terawatt hours. At the same time, emissions from the energy sector increased by 7%. Demand was boosted by the economic recovery from the pandemic and several exceptional weather events.

The amount of energy produced by renewable energy sources increased, but the use of coal power and natural gas also increased to record levels. The energy industry must change rapidly if prices and emission levels are to remain more moderate, the energy organization warns.

“In the absence of faster structural change in the sector, growing demand over the next three years could lead to increased market volatility and increased emissions,” IEA says in its recent market report

Director – General of the IEA Fatih Birol warns that rising electricity prices could exacerbate social and political tensions as prices plague households and businesses around the world.

The violent riots in Kazakhstan are an extreme example of what a sudden surge in household energy costs could lead to. In Spain and Turkey, for example, the rise in electricity bills has also put people on the streets.

Read more: Energy crises are already a source of global outrage and political turmoil – such controversy over price rises in Europe

According to Birol, emissions from electricity generation and consumption will remain at the same level over the next three years, and the emission targets will therefore not be met.

According to Birol, “the electricity industry needs massive changes to fulfill its role in reducing emissions from the wider energy system”.