Coronavirus impact on energy consumption

The government measures put in place to contain and contrast the spread of coronavirus, which can be summarized in the slogan that is spreading on the #iorestoacasa network, are inevitably having repercussions on the supply and demand of electricity and gas.

(by Gianfranco Ossino - Engineer and Head of the Aidr Observatory for the Digitization of the Environment and Energy) The measures adopted in recent decrees to manage the pandemic emergency in progress have drastically reduced activities by limiting them to the essential ones and are changing habits , work, the newspaper ... in a nutshell the life of each of us. The foreseeable repercussions on the production system were not slow in manifesting themselves and the energy sector is proof of this by recording historical reductions in consumption with consequent reduction in raw material costs.

This situation will lead to an increase in the domestic demand for electricity and heat, on which it is possible to obtain cost savings.

Consumption reduction

Digital technology today allows almost real-time availability of data on energy consumption, which is essential for providing elements to support decisions. They represent one of the most immediate indicators for gathering information on the trend of the economy in particular in critical moments such as the one we are going through.

The government measures, mentioned above, are having a significant impact on energy consumption which register a significant reduction in demand in the business sector and an increase in demand in the domestic sector, all with a result that sees a drastic reduction in consumption.

In the electricity sector, according to the data provided by Terna, the comparison of current consumption with respect to that of last year shows a considerable reduction. Consumption for the current year was already decreasing, which the emergency further increased with the entry into force of the decree of 22 March as shown in the table. The inevitable restrictions on both industrial and commercial activities, capable of containing the spread of the virus, in March led to a considerable reduction in consumption of minus 8,7%, which in absolute terms equals 2,024 TWh less than the same period last year.

Analyzing the data for the month of March in particular those relating to the period of entry into force of the decree, it is clear how this contributed to the aforementioned significant reduction in consumption. Reduction that recorded an 18,4% less than the same period last year.

Taking as an example the day of March 27 last and compared with that of last year, there has been a daily decrease in consumption of 253,5 GWh which in% equals 27,5% less than on the same day last year.

Worst scenario for our country occurred with the Black Out of September 23, 2003 caused by an accident.

Reduction of electricity and gas costs

The persistent consequences of the reductions in energy consumption have the immediate consequence of a tariff reduction on raw materials or gas and light, this is what ARERA (Regulatory Authority for Energy, Networks and Environment) communicates, reductions that will start from next April 1st. The reduction will result in lower electricity and gas costs for consumers. For the domestic market or for households, the announced reduction will translate into an overall average annual saving of 184 euros.

How to save

The coronavirus emergency imposes a series of measures that aim to contain and contrast the spread of the virus, which make us forced to spend our lives within the home, radically reviewing our habits and our daily commitments. Digital technology in all this is proving to be a very valid tool that allows us to continue our life even if in a totally different way. It is a moment that offers us the opportunity to regain our time that we should organize and manage it in a constructive way, also taking care to review the use of resources in general and specifically of energy from a rational and functional point of view. Saving on electricity and gas represents an even more felt need in this period for the stringent measures of the decree, which will inevitably result in a greater domestic need for electricity and thermal energy. As well as obtaining it from reducing the electricity and gas tariffs, as written, savings can also be pursued in other ways and let's see which ones. The interventions aimed at domestic savings on energy expenditure can be summarized in two macro interventions:

  • Containment of consumption, these in turn are punishable by:
  • adoption of technical solutions that allow to reduce the energy-consuming nature of our homes (improvement of the thermal resistance, use of high energy-saving users, self-production of electric and / or thermal energy, ...);
  • virtuous behaviors that allow a thrifty use of energy.
  • Cost reduction through careful evaluation of the offers of the various operators on the market

Let's dwell on this last point or how to save on electricity and gas costs by choosing the cheapest supplier. The company is not easy due to the large number of operators on the market, indicatively the persons authorized to sell:

  • natural gas are over 600;
  • electricity are over 400.

Digital technology facilitates the operation thanks to the various solutions available on the network that allow the choice between different operators authorized to sell electricity and gas. In this regard, the "offer portal" for the free market made available by the Single Buyer (Public Company), which based on the insertion of little information inferable from the invoice, electricity or gas, provides a large list of suppliers with their respective cheap offers.

Conclusions

The current emergency will not be short-lived and will certainly change our lifestyles, we use this period to re-evaluate resources in general and specifically energy resources for their use that is increasingly thrifty and functional.

Coronavirus impact on energy consumption