5 Reasons for Increasing Global Energy Demand

The development and growth process of a country requires generation as well as consumption of energy. Thus, growing energy needs is an index of nation development. Energy is derived from both conventional and non-conventional resources. Furthermore, it is expected that global energy needs will rise steadily in the next two and a half decades. If governments stick with current policies then according to the World Energy Outlook’s Reference Scenario – the energy needs of the world would be 50% higher in 2030 than today with an average annual growth rate of 1.6%.

India is among the fastest growing markets in the world and is expected to be the second largest contributor to the increase in global energy demand by 2035, accounting for 18% of the rise in global energy consumption. With limited fossil fuel reserves, the country has planned to increase its renewable and nuclear power industries. Fossil fuels till date continue to dominate energy supplies and are expected to remain the same for the coming years. Fossil fuels (coal, petroleum, natural gas etc.) are expected to cater for more than 80% of the projected increase in primary energy demand in this scenario. Natural gas demand is also growing at a very fast rate, which is driven mainly by power generation. Coal has been the largest energy source especially in China and India.

Reasons for Increase in Worldwide Energy Demands

1. Globalization

Transportation is one of the largest consumers of energy in the world, accounting for more than 50% of liquid fuel consumption in countries. The energy required for transportation has inevitably increased with increased globalization.

2. Industrialization

There is a large scale requirement of energy in businesses and factories in the form of both electricity and petroleum-based fuels in order to operate. The energy demand is increased as soon as economies industrialize. In other words Industrialization and Urbanization have multiplied the demand for energy resources several-fold.

3. Increasing Wealth

With the growth of economy the energy also grow. This leads to increased energy demand and consumption.

4. Population

Rapid growth of human population is putting a heavy stress on all resources of energy.

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