from fossil fuels to electric power is accelerating, but that doesn’t mean it’s going to be a smooth process. Demand surged last year for models like Ford’s F-150 Lightning and Tesla’s Model Y crossover, but the car business always has quick shifts in supply and demand. And at the moment, the supply of electric cars and trucks is oustripping demand, according to. Rising interest rates and lingering concerns about the economy have bloated EV inventory on U.S.
And it’s not just demand for autos powered by electricity that’s cooling. The International Energy Agency thinks growth in globalin 2023. A global economic slowdown and an energy crisis triggered by Russia’s ongoing war on Ukraine are the main culprits. The IEA estimates that electricity demand will increase by just less than 2% this year, down from a 2.3% growth rate in 2022. The average growth rate was 2.4% in the five years before the Covid-19 pandemic.