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The cold weather first in Northeast Asia in January and then in the southern US in February was a useful reminder that winters can be cold and that gas demand is particularly temperature-sensitive, the IEA said in its latest quarterly gas market report on April 15. Time will tell whether the cold snaps of winter 2020/21 will have an influence on market design and regulatory policy decisions. But they do remind us that security of energy supply is never out of season, the agency said.
Speaking April 15 during a webinar to mark the launch of the report, IEA analyst Gergely Molnar said the price spikes which also occurred in Spain during an unusual cold snap this winter showed how markets could become stressed very quickly .
An electrical substation is seen after winter weather caused electricity blackouts in Houston, Texas, US. The crisis in Texas highlights weaknesses in the US network that need fixing to help achieve Biden’s goal of an emissions-free power system by 2035. Reuters
Home heating systems shutting down. Hospitals facing water shortages. Oil refineries going offline.
The freezing, snowy weather in Texas exposed how quickly an energy system can be brought down and how widespread the chaos can be. That raises questions about the vulnerability of power grids around the world just as more parts of our everyday lives electrify.
Grid operators model the reliability of their systems to handle harsh weather, and climate change is triggering more of those events at both ends of the thermometer. Electrifying sectors such as transportation and heating is considered vital for reducing the emissions contributing to global warming, yet the grids may not be able to handle the load.
Weak Grids Expose Risks for the Electrification of Everything leaderpost.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from leaderpost.com Daily Mail and Mail on Sunday newspapers.
Uncertainty Overshadows Global Natural Gas Recovery as Winter Nears End
Global natural gas demand is expected to bounce back to pre-pandemic levels this year, but the recovery is likely to be uneven and growth could be weak even after demand soared amid a historic cold snap this winter.
“We opened the year with this very strong bull run in Asia, which I would say was rather short-lived if we look at the prices now and the months ahead,” said Gergely Molnar, an analyst at the International Energy Agency (IEA).
IEA expects global natural gas demand to grow 2.8% this year, or just above the 2020 decline level, according to the agency’s first ever quarterly gas report. Growth is largely expected to be driven by emerging markets in Asia, Molnar told NGI. Mature markets in North America and Europe will see less growth.