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

Energy Sources

Think of energy sources like different kinds of batteries you might use for a toy robot. Some batteries are cheap and easy to find, while others are powerful but expensive.

• Fossil Fuels – coal, oil, natural gas. ⚡ They are like the old batteries that give a lot of power but can run out and pollute.
• Renewable Energy – solar, wind, hydro, bio‑energy, geothermal. 🌞🌬️💧 They are like rechargeable batteries that can be re‑used many times.
• Nuclear Energy – fission. 🔬 It produces a huge amount of energy from a small amount of fuel, but it needs careful handling.

Factors Affecting Energy Supply

Supply is like the number of batteries you can get from a store.

1. Resource Availability – How much coal or oil is left in the ground? Imagine a toy store running out of a popular toy.
2. Technology – New drilling or solar panel tech can increase supply. Think of a faster charger that lets you use batteries more quickly.
3. Political & Legal Factors – Regulations, subsidies, or trade agreements can boost or limit supply. It’s like a rule that says you can only buy a certain number of batteries per week.
4. Economic Conditions – When the economy is strong, more money is spent on building power plants. When it’s weak, projects may be delayed.

Factors Affecting Energy Demand

Demand is like how many batteries you want for your robot.

• Population Growth – More people need more energy. Imagine a classroom where every new student brings a new toy.
• Industrialisation – Factories use a lot of power. Think of a factory that needs batteries to run its machines.
• Technological Change – Efficient appliances reduce demand; electric cars increase it. It’s like switching from a heavy flashlight to a lightweight LED.
• Price of Energy – Higher prices can reduce consumption, similar to how a higher ticket price can reduce the number of people attending a concert.
• Government Policies – Carbon taxes or renewable incentives shift demand. It’s like a school giving extra points for using reusable water bottles.

Energy Supply & Demand Diagram (Simplified)

In economics, we often use a graph where the Supply (S) curve slopes upward and the Demand (D) curve slopes downward. The intersection is the equilibrium price ($P^*$) and quantity ($Q^*$).

$$P = f(Q)$$

Exam Tips

• Use the energy mix diagram to show how supply and demand shift with new policies.
• Remember the price‑quantity relationship – higher prices usually reduce demand, but can increase supply.
• When asked about factors affecting supply, list at least three and give a real‑world example (e.g., shale gas boom in the USA).
• For factors affecting demand, include population growth, technology, and price changes. Use the example of electric cars to illustrate rising demand.
• Use analogies (e.g., batteries, toy robots) to explain complex concepts simply.