Global electricity demand is expected to grow by an average of more than 3.5% a year through 2030, and annual investment in power grids will need to rise by about 50% to keep pace, according to a new report by the International Energy Agency (IEA) on Friday.
In its Electricity 2026 report, the IEA said electricity demand will grow at least 2.5 times faster than overall energy demand through 2030 as the world enters what it calls the "Age of Electricity."
The growth is being fueled by rising industrial electricity use, the continued rollout of electric vehicles, heavier air conditioning demand and the rapid expansion of data centers and artificial intelligence, the Paris-based global energy watchdog said.
Emerging and developing economies will continue to lead growth in electricity demand, but consumption in advanced economies is also picking up after about 15 years of stagnation.
To meet rising demand, electricity generation from renewables, nuclear power and natural gas is expected to play a central role. The agency said low-emission sources will continue to expand, with renewables and nuclear together projected to supply about 50% of global electricity by 2030, up from roughly 42% today.
The agency warned, however, that existing electricity networks are under growing strain and must expand rapidly. Around 2,500 gigawatts of projects worldwide, including renewable energy, battery storage and large electricity users such as data centers, are currently waiting for grid connections and cannot move forward, the report said.
"At a moment of significant uncertainty across energy markets, one certainty is that global electricity demand is growing much more strongly than it did over the past decade," said Keisuke Sadamori, IEA director of energy markets and security.
"In this Age of Electricity, the increase in global power consumption through 2030 is set to be equivalent to adding more than two European Unions," Sadamori added.
"Meeting this demand will require annual investment in grids to rise by 50% by 2030," he added. "Expanding flexibility will also be crucial as power networks continue to evolve – so will a strong focus on security and resilience."
Reporting by Nuran Erkul in London
Writing by Handan Kazanci
Anadolu Agency
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