In its annual report World Energy Investment 2020, published late last month, the International Energy Agency describes ‘drastically altered’ energy markets in the wake of the Covid-19 Pandemic. It documents the largest fall in energy sector investment ever and uncovers historic shifts along the way, such as that for the first time ever there will be more consumer spending on electricity than on oil. More crucially, it asserts that the sudden fall in investment flows, in all energy sectors, leaves a troubling legacy for the future, for conventional and for ‘clean’ energy.
The report states bluntly, ‘The energy industry that emerges from the crisis will be significantly different from the one before.’
But how? The IEA does not predict. Instead it lays out the main factors that investors should be monitoring.