3.5 Energy: Describe different sources and factors affecting energy supply and demand.

IGCSE Geography 0460 – Economic Development

Objective 3.5 – Energy: Sources and Factors Affecting Supply & Demand

This note follows Cambridge IGCSE Geography (Topic 10 Resource provision, sub‑topics 10.4‑10.6). It covers:

• How energy is produced (renewable vs non‑renewable, key processes, conversion efficiencies, storage options)
• Global patterns of energy supply and demand (worldwide trends, export‑import balances, income‑group comparisons)
• Factors that influence supply and demand
• Impacts of energy production and a brief sustainability evaluation

1. How Our Energy Is Produced

1.1 Key Concepts

• Renewable energy – resources naturally replenished on a human time‑scale (solar, wind, hydro, geothermal, biomass, fuel‑wood).
• Non‑renewable energy – finite fossil fuels and nuclear fuels that cannot be replaced within a few generations (coal, oil, natural gas, uranium).
• Primary energy – energy found in nature before any conversion (e.g., coal in the ground, sunlight, wind).
• Secondary energy – energy after conversion (e.g., electricity, gasoline, district heat).
• Conversion efficiency – proportion of primary energy that is turned into useful secondary energy (e.g., modern coal‑fired power stations 35‑45 % efficient; wind turbines 30‑45 % capacity factor; solar PV 15‑22 % module efficiency).
• Energy storage – technologies that retain energy for later use (pumped‑hydro, batteries, compressed air, hydrogen, thermal storage).

1.2 Main Energy Sources, Typical Production Process, World Share (2023, IEA) and Key Efficiency/Capacity‑Factor Notes

1.3 Energy Storage Technologies (brief overview)

• Pumped‑hydro storage – excess electricity pumps water uphill; released water generates power when needed.
• Batteries – lithium‑ion, lead‑acid, flow batteries; increasingly used for solar & wind integration.
• Compressed air energy storage (CAES) – air compressed in underground caverns, expanded through turbines.
• Hydrogen – electricity → electrolysis → H₂; stored and later used in fuel cells or turbines.
• Thermal storage – molten‑salt or water tanks store heat from solar‑thermal plants.

2. Global Patterns of Energy Supply & Demand

2.1 Why Global Energy Consumption Is Rising

• Population growth – world population ≈ 8 billion (2023); more people need heat, transport, electricity.
• Economic development – higher GDP per capita → more factories, larger transport fleets, greater appliance ownership.
• Urbanisation – 56 % of the world lives in cities; urban dwellers use more electricity for lighting, cooling, public transport.
• Improved living standards – air‑conditioning, refrigeration, and electronic devices are now basic needs.
• Industrialisation of emerging economies – China, India, Indonesia, Nigeria expanding manufacturing and construction.

2.2 Energy Security and Export‑Import Balance

• Energy security – ability of a country to obtain reliable, affordable energy at all times.
• Three dimensions: availability (physical access), affordability (price stability), acceptability (environmental & social impacts).
• Net exporters (e.g., Saudi Arabia, Russia, Australia) earn foreign‑exchange but may suffer “resource‑curse” effects if economies are not diversified.
• Net importers (e.g., Japan, Germany, South Korea) are vulnerable to price spikes, geopolitical tensions, and supply disruptions.
• Trade flows: in 2022, global oil exports were ≈ 84 million bbl day⁻¹, natural‑gas LNG exports ≈ 400 bcm, while renewable electricity is largely non‑traded (except via cross‑border grids).

2.3 Comparative Energy Mixes (High‑, Middle‑ and Low‑Income Illustrations)

2.4 World Primary‑Energy Consumption (1970‑2023) – Line Graph (illustrative)

2.5 Recent Trends (2020‑2023)

• Global coal consumption fell ≈ 3 % (China’s shift to gas and renewables).
• Oil demand recovered after the COVID‑19 dip, reaching 96 % of 2019 levels.
• Natural‑gas use grew ≈ 4 % per year, driven by power‑sector decarbonisation in Europe and the USA.
• Renewable electricity generation increased ≈ 10 % annually; solar PV added the most capacity, followed by wind.
• Energy‑intensity (energy use per unit of GDP) continued a slow decline, indicating modest gains in efficiency.

3. Factors Influencing Energy Supply

• Resource availability – size, quality and geographic distribution of coal seams, oil fields, wind corridors, solar irradiance, river flow, geothermal gradients.
• Technology & efficiency – hydraulic fracturing, deep‑water drilling, high‑efficiency turbines, PV cell advances, battery storage, carbon‑capture‑and‑storage (CCS).
• Investment & capital – financing for power plants, grids, pipelines, offshore wind farms; public‑private partnerships and green‑bond markets.
• Political & regulatory environment – licences, tax regimes, subsidies, carbon pricing, environmental impact assessments, renewable‑energy targets.
• Infrastructure – transmission networks, ports, storage facilities, inter‑regional grid interconnections.
• Environmental constraints – climate‑change policies, protected‑area legislation, public opposition (e.g., “NIMBY” for wind farms).
• Extraction & production costs – expressed as C = C_exploration + C_development + C_operation; high costs can render a resource uneconomic.
• Geopolitical stability – wars, sanctions, trade disputes can restrict access to imported fuels.
• Energy‑storage capacity – ability to store surplus renewable electricity influences the practical supply of intermittent sources.

4. Factors Influencing Energy Demand

• Population size & growth – more people = higher total energy use.
• Economic development & industrialisation – manufacturing, construction, and service sectors are energy‑intensive.
• Urbanisation – dense cities need electricity for lighting, transport, cooling, water supply and waste treatment.
• Income levels – higher disposable income leads to larger homes, more appliances, private car ownership and air‑conditioning.
• Energy prices – demand is price‑elastic; higher prices can curb consumption or stimulate efficiency measures.
• Energy‑efficiency & technology – LED lighting, high‑efficiency motors, hybrid/electric vehicles, smart‑grid controls reduce per‑capita demand.
• Government policies & incentives – subsidies for renewables, carbon taxes, fuel‑efficiency standards, building‑code requirements.
• Climate & seasonal factors – heating demand in winter, cooling demand in summer; also influences hydro and wind availability.
• Cultural & behavioural factors – lifestyle choices, awareness of climate change, willingness to adopt new technologies.
• Access to modern energy services – electrification programmes raise demand in previously off‑grid rural areas.

5. Impacts of Energy Production and Sustainability Evaluation

5.1 Environmental Impacts

• Fossil fuels – CO₂ and other greenhouse gases, air pollutants (SO₂, NOₓ, particulates), oil spills, habitat loss from mining.
• Nuclear – radioactive waste, risk of accidents, thermal pollution of water bodies.
• Hydropower – alteration of river ecosystems, displacement of communities, methane from reservoirs.
• Wind & Solar – land‑use change, visual and noise impacts, rare‑earth mining for turbines, end‑of‑life waste.
• Biomass & Fuel‑wood – deforestation, competition with food production, air‑quality impacts if burned inefficiently.

5.2 Economic & Social Impacts

• Job creation in extraction, construction, operation and maintenance (renewable‑energy sector growth > 10 % yr‑on‑yr).
• Energy‑price volatility can affect household budgets and industrial competitiveness.
• Infrastructure projects may bring regional development (roads, ports) but also social disruption (relocation, cultural loss).
• Improved energy access enhances health (electricity for clinics), education (lighting for schools), and gender equality (reduced time spent gathering fuel‑wood).

5.3 Sustainability Evaluation (Key Criteria)

5.4 Key Take‑aways for IGCSE Exams

• Know the difference between primary and secondary energy and be able to give examples.
• Be able to list at least three renewable and three non‑renewable sources, their main uses and one advantage & disadvantage of each.
• Understand the concepts of energy security, net exporters vs net importers, and how geopolitics can affect supply.
• Remember the main drivers of rising demand (population, economic growth, urbanisation, standards of living).
• Be prepared to discuss at least two factors that influence supply and two that influence demand, using specific country examples.
• When evaluating sustainability, balance environmental, economic and social criteria.