Global electricity demand is expected to expand at one of the fastest sustained paces in over a decade despite ongoing economic pressures, according to the International Energy Agency’s Mid-Year Update to is annual market report.
Electricity demand is on course to rise by 3.3% in 2025 and 3.7% in 2026 – more than twice as fast as total energy demand growth over the same period, according to the report. Demand is increasing to power factories and appliances, to cool buildings, to operate growing fleets of data centres, to power electric vehicles, and more. The latest forecasts for global electricity demand growth this year and next are well above the 2015-2023 average.
According to the Update, renewables are expected to overtake coal as the world’s largest source of electricity generation as early as 2025 or by 2026 at the latest, depending on weather and fuel price trends. At the same time, nuclear power output is expected to reach record highs. The steady increase in natural gas-fired power generation is set to continue displacing coal and oil in the power sector in many regions.
Follow these links to read the report and view the latest version of IEA’s Real-Time Electricity Tracker.
