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Factors that influence the supply and demand of energy - Coggle Diagram
Factors that influence the supply and demand of energy
Demand
Price of energy = If price increases, demand falls. People switch to alternatives or use less.
Price of substitutes = If gas is expensive, demand for renewables may rise.
Income levels
Weather and seasonality = Winter, more gas used as colder weather.
Population size
Technology and efficiency
Government policy
Consumer preferences and culture
Supply
Political
Countries wanting to develop nuclear electricity require permission from the International Atomic Energy Agency.
International agreements such as the Kyoto Protocol can have considerable influence on the energy decisions of individual countries.
Potential HEP schemes on 'International rivers' may require the agreement on the other countries that share the river.
Governments may insist on energy companies producing a certain proportion of their energy from renewable sources.
Legislation regarding emissions from power stations will favour the use of, for example, low-sulphur coal, as opposed to coal with a high sulfur content
Physical
Deposits of fossil fuels are only found in a limited number of locations.
Large-scale HEP development requires high precipitation, major steep-sided valleys and impermeable rock.
Large power stations require flat land and geologically stable foundations.
Solar power needs a large number of days a year with strong sunlight.
Wind power needs large average wind speeds throughout the year.
Tidal power stations require a very large tidal range.
The available of biomass varies widely according to climate conditions.
Economic
The most accessible, and lowest-cost deposits of fossil fuels are invariably developed first.
Onshore deposits of oil and gas are usually cheaper to develop than offshore deposits.
Potential HEP sites close to major transport routes and exsitsting electrisity transmission corridors are more economical to build than those in very inaccessible locations.
In poor countries, FDI is often essential for the development of energy resources.
When energy prices rise significantly, companies increase spending on exploration and development.
Factors affecting changing uses of energy
Technological development - e.g. nuclear electricity has only been available since 1954.
Increasing national wealth - as average incomes increase living standards improve, which involves the increasing use of energy and the use of a greater variety of energy sources.
Changes in demand
Changes in price
Environmental factors/public opinion