During the COVID-19 Pandemic... April Power Generation in Major Countries Hits Lowest Level in 14 Years

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Due to the global economic downturn caused by the spread of the novel coronavirus infection (COVID-19), electricity production in major countries around the world has fallen to its lowest level in 14 years.

According to the monthly electricity statistics report by the International Energy Agency (IEA) on the 26th, the total electricity production of OECD member countries in April reached 738.3 TWh (terawatt-hours). This represents a 7.2% decrease compared to the same period last year and is the lowest level in 14 years since January 2006.

The IEA analyzed that "electricity production decreased due to reduced electricity demand caused by nationwide lockdowns and manufacturing downturns resulting from the global COVID-19 pandemic."

Electricity production is regarded as a representative "economic indicator" that can indirectly measure companies' production activities. The drop to the lowest electricity production level indicates the severity of the economic recession.

Looking at electricity generation by energy source, the decline in traditional power sources such as coal and nuclear power was prominent.

In April, coal power generation in OECD member countries decreased by 23.0% compared to the same period last year, while nuclear and natural gas power generation fell by 7.5% and 6.4%, respectively. On the other hand, renewable energy generation such as wind and solar power increased by 3.2% during the same period.

South Korea recorded a total electricity generation of 41.2 TWh in April, down 4.8% compared to the same period last year.

In particular, natural gas power generation (9.5 TWh) sharply decreased by 19.5%. Due to reduced electricity demand and prolonged low oil prices, relatively expensive natural gas was pushed down in the merit order (the order of electricity supply starting from the cheapest energy sources), which had the greatest impact on power generation volume.

During this period, coal power generation increased by 1.7% to 14.6 TWh, while nuclear power (13.0 TWh) decreased by 3.3%. Renewable energy generation (3.3 TWh) increased by 31.4%.

The share of electricity generation by energy source in OECD member countries was 26.9% for natural gas, 19.1% for nuclear power, and 16.5% for coal. The share of renewable energy in total electricity generation was 35.2%.

In contrast, in South Korea, coal (35.5%) and nuclear power (31.7%) accounted for more than two-thirds of total electricity generation, still serving as core energy sources, while the share of renewable energy generation was only 8.1%, showing a significant gap compared to OECD member countries.

This content was produced with the assistance of AI translation services.