Energy Demand Analysis for Better Insights

Energy demands show the total amount of energy required by industries, individuals, and nations to power transportation, homes, infrastructure, and technology. All these help in driving economic growth and daily human activities.

This guide shows you how to trace energy demands using a renewable energy chart, an energy flow diagram, and a Sankey Diagram in Power BI.

Whether you’re a newbie or a veteran analyst, this guide will show you how to use Sankey Diagram and other visualization tools to perform digital analytics.

You’ll also discover the different ways to present electric energy demand and how to use Power BI for energy demand analysis.

What is Energy Demand?

Definition: Energy demand is the total amount of energy needed to power multiple activities, including commercial, residential, transportation, and industrial needs.

It shows how much energy is needed over a specific period to support economic development and daily life.

Why Calculate Global Energy Demand?

• Energy Planning and Infrastructure Development: By calculating global energy demand, energy providers and policymakers can plan for future energy needs. Accurate demand projections help in building and designing infrastructure like transmission lines, power plants, and renewable energy systems. It ascertains energy is available to meet the growing needs of homes, businesses, and industries.
• Environmental Impact and Sustainability: A good grasp of energy demand helps reduce environmental impact. By tracking energy consumption trends, it becomes easy to set targets for reducing carbon emissions and improving energy efficiency. It also helps in transitioning to sustainable energy sources.
• Resource Allocation: Energy demand calculations help organizations and governments figure out how to allocate resources efficiently. It includes identifying which energy sources are necessary to meet demand and how to balance the use of these resources to avoid over-reliance or shortage on a single source.
• International Cooperation: Global energy demand calculations facilitate international cooperation on energy policy, trade policies, and the sharing of technology and resources to address supply chain disruptions or energy shortages.

How to Calculate Energy Demands?

• Define the Scope of the Calculation: You have to figure out the scope for your energy demand calculations. Is it for a business, an individual household, a region, or globally? The scope will dictate the data you need and the complexity of your calculations.
• Gather Relevant Data: Gather data on factors influencing energy usage, like:
  • Population Size: The number of businesses or people consuming energy.
  • Weather and Seasonal Variations: Energy demand often fluctuates depending on the season and temperature.
  • Energy Consumption Patterns: Information on how energy is used, like lighting, machinery, or heating.
  • Economic Activity and Industrial Use: For larger-scale demand, you have to consider industrial activities and their energy consumption.
• Categorize Energy Types: You have to figure out the types of energy being consumed. It could be gas, oil, electricity, or renewables. For a more detailed analysis, break down energy use by these categories.
• Calculate Energy Use per Unit: You have to estimate energy consumption for individual units. It could be per household, sector, or business. Multiply the energy usage of each unit by the total number of units (like businesses or the total number of households).

How to Use Power BI for Energy Demand Analysis?

Here are the stages to follow when creating a Sankey Diagram custom visual by ChartExpo.

• Stage 1: Log in to Power BI, enter your email, and click the “Submit” button.

• You’ll be redirected to a Microsoft account. Enter your password, and click “Sign in.”

• You can opt to stay signed in.

• Stage 2: Create a Data Set and Select the Data Set to Use in the Sankey Chart
• Navigate to the left-side menu and click on the “Create” option. At this point, you’ll have to select “Paste or manually enter data.”

• The following energy stream data will be used for this illustration.

• Paste the data table above into the “Power Query” window. After that, select the third “Create” option. Navigate to the left-side menu and click on the “Data Hub” option. Power BI will populate the data set list. If no data set has been created, you’ll get an error message.

• Click on the “Create a blank report” dropdown.

• To add the Power BI Sankey Diagram Extension by ChartExpo, you’ll need an add-in or Power BI visual from AppSource. Navigate to the right side of the Power BI dashboard and open the Power BI Visualizations panel.
• Click the ellipsis symbol (…) to import the Power BI Sankey Diagram extension by ChartExpo.
• In the following menu that opens, select the “Get more visuals” option.

• Enter “ChartExpo” in the highlighted search box. You’ll see the “Sankey Diagram for Power BI by ChartExpo.”

• After that, click on Sankey Diagram and also click the highlighted “Add” button

• Power BI will add the “Sankey Diagram for Power BI by ChartExpo” icon in the visualization panel.

• To draw a Sankey Diagram with ChartExpo’s Power BI extension, select the “Sankey Diagram for Power BI by ChartExpo” icon in the visualization panel.
• You’ll have to provide a ChartExpo license key or email address. Add the key under the Visual section. After that, you’ll see the Sankey Chart.

• After adding a key, you’ll see the chart.

• You can add the top header text in the chart under the General section.

• Here’s the Header text on top of the chart.

• You can add the color of all Nodes.

• After adding the color of all nodes, your Sankey Chart will be displayed on your screen.

• Here’s the final Sankey Chart.

Insights:

The data shows higher industrial energy consumption from renewable sources and natural gas. Renewable energy dominates in all sectors. Hydropower and nuclear contribute significantly, while the cost is mainly used in the North.

Pros and Cons of Calculating World Energy Demand

Here are the Pros and Cons of calculating world energy demand.

Pros of Calculating World Energy Demand

• Informed Policy Making: Calculating global energy demand helps organizations and governments create effective policies. It ensures energy availability to meet future needs and address issues like excess consumption or supply shortage.
• Infrastructure Planning: Accurate demand forecasts guide investments in energy infrastructure like grids, power plants, and renewable energy projects. This ensures that infrastructure grows in line with increasing demand.
• Sustainable Development: It aids in planning for energy transitions, like moving from fossil fuels to renewable energy resources. This will, in turn, support sustainable development goals and environmental protection.
• Global Cooperation: It offers a basis for international cooperation, and that helps countries share resources, strategies, and technologies to meet global energy needs. This helps in fostering trade and energy security.

Cons of Calculating World Energy Demand

• Uncertainty: Predicting energy demand involves many assumptions, like technological changes and future population growth. All these make forecasts uncertain.
• Complexity: Calculating global demand is complex, and that requires a large amount of data. This may not be accurate or readily available.
• Changing Market Dynamics: Energy demand can be influenced by unforeseen events (like pandemics or economic crises), and that may skew calculations.

What are the Tips for Energy Demand and Supply?

• Forecast Energy Demand Accurately: Accurate demand forecasting is vital for preparing for future energy needs. Gather data on population growth, historical energy consumption, technological advancements, and industrial activity. Incorporate potential shifts in energy use due to urbanization, climate change, and evolving consumer behavior.
• Diversify Energy Sources: Relying on a variety of energy sources can reduce vulnerability to supply disruptions. Diversification ascertains a stable supply, even during fluctuations in resource availability.
• Promote Energy Efficiency: It encourages energy-efficient technologies and practices to reduce unnecessary consumption. Implementing energy-saving policies like smart grids, energy-efficient appliances, and insulation in buildings can lower overall demand and extend the lifespan of existing energy resources.
• Monitor and Adapt: Regularly assess energy supply and demand trends to make timely adjustments. Use real-time data and predictive analytics to optimize energy distribution and spot imbalances.

FAQs:

Is energy demand increasing?

Yes, global energy demand is increasing. And it’s due to industrialization, population growth, and digitalization. The rise is driven by developing nations, but renewable energy and efficiency improvements play a major role in moderating the growth.

What are the factors of energy demand?

Energy demand is influenced by economic development, population growth, technological advancement, urbanization, energy prices, climate, lifestyle changes, and government policies. Industrial activity also influences energy demand. All these factors vary by development stage and region.

What are the three important determinants of energy demand?

The three important determinants of energy demand are economic activity (GDP growth), economic activity, and energy prices. These factors influence how much energy is consumed across industrial, residential, and transport sectors.

Wrap Up:

Energy demand is the total energy required to power industries, homes, and transportation. Calculating global energy helps guide policy, plan resources, and address environmental concerns.

To get the most out of energy demand and supply, you’ll have to encourage demand response programs, monitor, and adapt. You have to incorporate demand response programs to manage peak load times. These programs incentivize consumers to shift or reduce energy use during high-demand periods, which helps prevent grid overloads and reduce energy costs.

Furthermore, you have to regularly assess energy supply and demand trends to make necessary adjustments. You should consider using real-time data and predictive analytics to optimize energy distribution and spot imbalances.

Now you know what energy demand is, what tool will you use to visualize the energy demand of your organization?