Electricity Market Report, July 2022
In the first half of 2022, many electricity markets continued to experience skyrocketing
prices, particularly in Europe, reflecting deep uncertainties over both fossil fuel
supplies and the economic outlook. Russia’s invasion of Ukraine shattered any hope
of energy prices declining in the near term following the strong increases seen in
the second half of 2021. In Europe, the situation prompted heightened ambitions and
strengthened policies to advance clean energy transitions and reduce dependency on
fuel imports. But in the short term, it also resulted in a partial return to coal-fired
electricity generation. Sluggish economic growth is expected to dampen global electricity
demand growth in 2022 and 2023 to less than half the rate seen in 2021. Despite gas-to-coal
switching and low nuclear power plant availability in Europe, global electricity sector
emissions may decline slightly in 2022 and 2023 – reflecting a combination of slowing
power demand and displacement of fossil fuels by renewables.
This July 2022 update of the IEA Electricity Market Report presents our latest forecasts
for global electricity demand, supply and emissions through 2023. In light of Russia’s
invasion of Ukraine, we also provide a special focus on the situation in Europe, discussing
recent developments and future plans.
Available from August 29, 2022