The IEA makes use of various methods to create their predictions, some are based on technical analysis while others rely on economic modelling. They base their decisions on many factors including the growth in population and the rate of technological change and environmental changes, which have an effect on how much electricity we use.
In order to determine the likelihood of the energy market facing problems in the future, the IEA looks at the trends that are going on in the market and the potential issues that could arise. One of the biggest things that the IEA takes into account when making predictions is the rate of change. In other words, if there is a marked slowdown in technology, demand or any other factor which could affect the cost of electricity then this will have an effect on how the electricity is supplied.
Of course the IEA is not the only organisation which is forecasting trouble ahead for the energy industry. There are other agencies that are doing similar research and forecasting work as well as some independent bodies. For example, the US Department of Energy also keeps up to date with the world of technology, which they study in order to make informed predictions about what’s coming in the future. However, their predictions are not as accurate as the IEA and they are largely based on what we already know and understand about electricity.
Some analysts believe that the IEA and other agencies should focus more on forecasting and analyse the future demand rather than what we do today. This is because they believe that we need to be more proactive in order to deal with the issues of the future.
According to many analysts the IEA has been too pessimistic when it comes to predicting the future of the energy market. They say that the IEA has consistently made assumptions about the current trends and environment which have resulted in the prediction being incorrect. They also say that the IEA’s predictions have not been taken into consideration correctly by governments and other institutions so the impact of these predictions cannot be properly understood.
In addition, the IEA has failed to take into account the fact that the costs of generating electricity will increase over the next few years and the increase in prices is going to be greater than ever before. They also say that the costs of the IEA’s predictions will not be affected by the current boom in the housing market and the fact that there is currently more demand for homes than there is supply.
These criticisms have been made by a number of independent commentators and scientists who have looked into the IEA and its methods of predicting the future and their own forecasting. One of the most common criticism has been that the IEA fails to factor in the likely future cost of the technologies that we have now and that we are unlikely to be able to manufacture in the near future.
Other critics say that the IEA has underestimated the effects of wind and solar power, which is one of the major drivers of the rise in power prices in the UK. The IEA itself says that it takes into account the positive and negative aspects of these technologies and the effects which they have on the environment.
One other area where the IEA has said that it over-estimates the impact of these technologies is when it suggests that electricity generated by wind and solar power will cause power price rises in the future. Although this prediction may be correct, it is not an indication that this particular technology will cause the price of electricity to increase.
Some of the other criticisms that critics of the IEA have made have been related to the fact that they say that the IEA’s projections of the future are overly pessimistic and therefore over-estimates the impact of some technologies. This means that the predictions could not be correct or could actually lead to a decrease in the growth of electricity supply. It has also been pointed out that if the IEA does predict an increase in electricity supply in the future, then the main reason for this increase in demand will be due to increased demand from industrial users of electricity.