WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 8
Global
Outlook
2023 energy landscape at a glance
Global energy related GHG15 emissions hit record high in 2023,
despite rapid deployment of renewable energy.16
Primary energy consumption reached a record level of 620
exajoules (EJ) in 2023, compared to 537 EJ ten years earlier (a
15% increase). It grew by roughly 2% between 2023 and 2022.17
The world’s demand for electricity grew by 2.2% between
2023 and 2022, roughly at the same pace as the global primary
energy consumption while according to forecasts it should grow
much quicker. While China, India and numerous countries in
Southeast Asia experienced robust growth in electricity demand,
11 Members of the Price Cap Coalition: Australia, Canada, the European Union, France, Germany, Italy, Japan, New Zealand, the United Kingdom, and the United States https://home.treasury.gov/news/
press-releases/jy1796
12 Liquefied Natural Gas
13 https://www.google.com/search?q=russian+LNG+importation+in+EU&rlz=1C1ONGR_frFR1088FR1088&oq=russian+LNG+importation+in+EU&gs_
lcrp=EgZjaHJvbWUyBggAEEUYOTIICAEQABgWGB4yCggCEAAYgAQYogQyCggDEAAYgAQYogTSAQoxNzUxNmowajE1qAIIsAIB&sourceid=chrome&ie=UTF-8
14 https://www.consilium.europa.eu/en/press/press-releases/2024/06/24/russia-s-war-of-aggression-against-ukraine-comprehensive-eu-s-14th-package-of-sanctions-cracks-down-on-circumventionand-adopts-energy-measures/
15 GHG: Green House Gases
16 https://www.energyinst.org/statistical-review
17 https://www.statista.com/statistics/265598/consumption-of-primary-energy-worldwide/#:~:text=Global%20primary%20energy%20consumption%20reached,percent%20in%20comparison%20
to%202022.
18 https://www.capgemini.com/insights/research-library/world-energy-markets-observatory/
19 In2022, the EU Industrial electricity consumption accounted for 35% of the total electricity
consumption. https://www.statista.com/statistics/265598/consumption-of-primary-energy-
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Western economies posted substantial declines due to a weak
macroeconomic environment which reduced industrial output.
More than half of the electricity demand rise in 2023
was from five technologies: electric vehicles (EVs), heat
pumps, electrolysers, air conditioning and data centres. The
development of these technologies should fuel the future
growth in electricity consumption.
In Europe: electricity demand in 2023 was lower than in 2005
as it reached its lowest level in 20 years!
This drop in consumption is linked, on the one hand, to the
ongoing individual behaviours to control electricity consumption
that began in 2022 under the pressure of very high prices and
fears about the security of electricity supply (see WEMO edition
202318). On the other hand, the European economy in general
has been stagnant and the activity of the industrial sector, which
accounts for 35% of the total electricity consumption,19 has
decreased.
The stagnation in electricity consumption and the non-increasing
penetration rate of electricity consumption within the total
energy mix in Western Countries reflect a significant delay
in achieving the energy transition objectives as electricity is
the privileged vector for decarbonized energies sources (wind,
solar, hydro and nuclear)
WEMO 2024
In June 2024, the Council adopted a 14th package of economic
and individual restrictive measures against Putin’s regime This
package includes Russian LNG imports.14
Another way to cut Russia’s export revenues further will be to
drive down the oil price cap that is presently at $60/bl.
Also, the G7 countries should conduct a comprehensive critical
oil-and-gas technology review. and impose embargos on them.
8
In December 2022, the Price Cap Coalition countries11
established an oil price cap mechanism on Russian seaborne
crude oil and petroleum products. These countries operators
are only allowed to provide maritime transport for Russian crude
oil and petroleum products if these are sold at or below the
relevant price caps.
The sanctions initially forced Russia to increase the discount
on the price of its oil sold to attract new buyers and replace
sales that previously went to Price Cap Coalition countries.
The resultant losses were significant, with Russian oil export
revenues falling by 14% (€ 34 bn) in the 12 months after the
sanctions were implemented. The losses peaked at €180 million/
day in the first quarter of 2023, before shrinking to € 50-90
million/ day in the second and third quarters of the year.
On the gas side, the share of Russian pipeline gas member states
imported fell from 40% of the total in 2021 to about 8% in 2023.
In contrast, EU’s LNG12 imports from Russia have increased, by
37.7% between 2021 and 2023.13 So when LNG is included the
total share of Russian gas in the EU's total was 15% in 2023.
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