Energy prices will continue to rise for the next three years: energy agency warns of global consequences

Over the next three years, energy prices worldwide will continue to rise. Fatih Birol, CEO of the International Energy Agency (IEA), makes that prediction in The guardian following the annual report of his organization.

Last year saw the largest peak ever in our energy consumption. Demand rose 6 percent and has never been greater, according to the IEA’s annual report. It led to some blackouts, but also – and above all – a huge worldwide price increase. And the IEA expects that we will continue to see price increases for at least the next three years, with major consequences for companies and economies around the world, unless there is a very rapid structural change to the way electricity is generated.

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“Steep spikes in electricity prices have caused problems for many households and businesses around the world and risk becoming the source of social and political tensions,” said Fatih Birol, director of the IEA.

About half of the increase in electricity demand was caused by China, which recorded a 10 percent increase compared to 2020. There have been some blackouts in recent months in both China and India.

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“Policymakers need to take action to minimize the impact on the most vulnerable and address the root causes,” Birol said. “Invest more in low-carbon technologies, including renewable energy, energy-efficient technology and nuclear energy, complemented by an expansion of robust and smart power grids. That can help us get out of the problems we are in today.”

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