Global electricity demand projected to surge: Report
Electricity is essential for running most of our daily lives, and a recent report from the International Energy Agency (IEA) predicts that demand for it will continue to rise in the coming years. The IEA estimates that increases in industrial production, more air conditioning use and the expansion of global data centers will drive the fastest growth in global electricity demand, with an annual increase of around 4% through 2027.
Since 2009, electricity demand in advanced economies, like the United States, has remained relatively unchanged due to increases in efficiency and industrial restructuring. However, the recent expansion of high-consumption items like electric vehicles and data centers has triggered a resurgence in demand. Global electricity demand saw a sharp increase of 2.5% in 2023 and nearly doubled to 4.3% in 2024.
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While advanced economies still consume most of the world’s total electricity, emerging and developing economies, led by China, are expected to account for 85% of global demand growth through 2027. According to the report, China is projected to account for more than half of these gains, with a year-over-year demand increase of about 6%.
The report emphasizes that the anticipated increase in consumption is unlikely to hinder global sustainability efforts because rapidly growing low-emission energy sources, such as renewables and nuclear energy, are expected to achieve record-high electricity generation and offset the additional global demand. Renewable energy sources, including solar wind and hydropower, are forecast to meet about 95% of the global electricity demand growth through 2027.
According to the IEA, renewable and nuclear energy sources are expected to surpass coal this year, accounting for more than one-third of global electricity generation. Because coal is a significant pollutant and the largest source of energy-related carbon dioxide (CO2) emissions, climate organizations and environmental groups have long called for phasing it out as an energy source.
-ABC News meteorologist Dan Peck