Covid 19 and the Future of Energy in Asia Pacific: Building Back Better, 2021

Covid 19 and the Future of Energy in Asia Pacific: Building Back Better, 2021

Publication details

  • Thursday | 01 Jul, 2021
  • Hina Aslam, Ubaid ur Rehman Zia
  • Research Reports,Project Publications
  • 1
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EXECUTIVE SUMMARY

The COVID-19 pandemic that emerged early in 2020 has led to multiple impacts across societies and economies. Analyzing the impact on the energy sector was equally as critical as analyzing the economic sector, as COVID-19 unleashed major impacts across the energy domain. Among the major energy demand areas, only the residential and building sectors showed an increase in energy consumption across the Asia-Pacific region during COVID19, mainly due to the imposed lockdowns and work from home strategies. For the industrial, transport, and commercial sectors there was an average decrease in energy demand of around 10 per cent, 8 per cent, and 7 per cent respectively. By contrast, residential energy demand showed an average annual expected increase of 4.5 per cent. The COVID-19 pandemic has also affected the energy supply sector of each country by halting the upcoming generation plants, which has been modelled separately based on the national capacity building plans of each country and what renewable sources are most suitable depending on their potential in specific country and the associated cost parameters. Emissions of each country also showed a similar pattern as of energy demand. However, it should be noted that this environmental emission drop as well as the reduction in demand are in no way a sign of green economy but rather pose an opportunity to build back better. Emissions will be lower in the event of a slow recovery, but a weaker economy also drains momentum from the process of change in the energy sector. Hence, a low economic growth of any country is not a low-emissions strategy..........