Emerging and developing economies are expected to drive 85% of the global demand growth for electricity over the next three years, the International Energy Agency (IEA) said on Friday.
Global power consumption is expected to grow at its fastest rate in recent years, rising nearly 4% annually out to 2027 as demand increases across various sectors, the IEA said in its "Electricity 2025" report.
Global demand growth is projected to add the equivalent of Japan's annual electricity consumption every year through 2027, the agency said.
The surge is mainly driven by strong growth in electricity consumption for industrial production, rising demand for air conditioning, the accelerating electrification of the transport sector, and the rapid expansion of data centers.
The demand growth for electricity "is most pronounced in China where electricity demand has been growing faster than the overall economy since 2020," the IEA said.
China's electricity consumption increased by 7% in 2024 and is projected to grow at an average rate of around 6% annually through 2027.
China's demand growth is partly driven by the industrial sector, with rapid expansion in producing solar panels, batteries, electric vehicles, and related materials. Air conditioning, electric vehicle adoption, data centers, and 5G networks also contribute to demand increase, it added.
Electricity demand in the US is projected to rise significantly, adding the equivalent of California's current power consumption to the national total over the next three years.
Meanwhile, electricity demand in the EU is expected to grow more slowly, returning to 2021 levels by 2027 after significant declines in 2022 and 2023 due to the energy crisis.
- Growth in low-emission sources enough to meet power demand
According to the report, growth in low-emissions sources – primarily renewables and nuclear – is sufficient, in aggregate, to cover all the growth in global electricity demand over the next three years.
"In particular, generation from solar PV is forecast to meet roughly half of global electricity demand growth through 2027, supported by continued cost reductions and policy support," it added.
Last year, electricity generation from solar power plants surpassed coal in the EU, with solar accounting for more than 10% of the power mix. China, the US, and India are all expected to reach a 10% share of annual electricity generation from solar till 2027.
"At the same time, nuclear power is making a strong comeback, with its electricity generation on course to hit new highs every year from 2025 onward over the forecast period," it added.
"As a result of these forecast trends, carbon dioxide emissions from global electricity generation are expected to plateau in the coming years after increasing by about 1% in 2024," the IEA said.
Commenting on the report, IEA director of energy markets and security, Keisuke Sadamori said the acceleration of global electricity demand highlights major changes in energy systems and signals "the approach of a new Age of Electricity."
"But it also presents evolving challenges for governments in ensuring secure, affordable and sustainable electricity supply," Sadamori said.
"While emerging and developing economies are set to drive the large majority of the growth in global electricity demand in the coming years, consumption is also expected to increase in many advanced economies after a period of relative stagnation," he added.
By Nuran Erkul and Handan Kazanci
Anadolu Agency
energy@aa.com.tr
