A fast-rising wave of electricity demand, driven by artificial intelligence, expanding data centers, electrification and electric vehicles, is exposing mounting constraints in grids and energy infrastructure.
Meeting the surge in electricity demand over the next decade will require progress across all pillars of the power system, not a single "silver bullet," said Jonathan Bruegel, power sector analyst at Institute for Energy Economics and Financial Analysis (IEEFA).
Bruegel told Anadolu that generation will naturally be the main driver, with rapid deployment of renewables-both intermittent (solar and wind) and dispatchable (hydro, geothermal, sustainable biomass) and, in some regions, a continued or expanded role for nuclear. He stressed however, that new generation alone is insufficient.
The International Energy Agency (IEA) says power demand could climb 40–50% by 2035, requiring roughly 1,000 terawatt-hours of additional consumption annually, about the same as Japan’s yearly usage, as the world moves deeper into an "age of electricity" era.
"Grid expansion, reinforcement, and digitalisation are critical. Without stronger and smarter transmission and distribution networks, new capacity will remain constrained by bottlenecks, curtailment, and connection delays," Bruegel warned.
Grid investments needs to keep pace with generation growth, particularly as electrification increases peak loads and volatility, he added.
He said that storage will play an increasingly central role. Short-duration batteries need to be systematically paired and properly sized with solar and wind to enable firm, near-24/7 low-carbon power.
He noted that pumped-storage hydropower remains a largely underutilised solution for long-duration and seasonal storage.
"While Western Europe is relatively well equipped, many regions globally still have substantial untapped potential." he said.
"Demand-side management is still underdeveloped. Clear regulatory frameworks and user-friendly market mechanisms are needed to enable households and industry to shift or reduce consumption, turning demand flexibility into a core system resource rather than a niche solution," he explained.
- EU need to work together on integrated solutions
According to Bruegel, in much of Western Europe, current trajectories suggest that power systems could become largely fossil-free by around 2045, relying predominantly on renewables and, in some countries, nuclear energy.
"However, some countries, such as Germany and Italy, are still reluctant to become fossil-free and gas still plays a structural role in their electricity systems. In Central and Eastern Europe, renewable deployment is accelerating, but legacy coal assets, grid constraints, and financing challenges mean that fully fossil-free power generation by 2045 is less likely," he said.
Bruegel said that globally, fossil-based generation will continue to play a role in supply security, particularly as a source of firm capacity to support reliability and peak demand.
"Overall, while renewables and energy storage are scaling rapidly, EU countries still need to work together on integrated solutions to minimise fossil fuels' participation in the energy mix," he added.
- Carbon-free generation key to successful energy transition
Bruegel noted that grid investments and flexibility technologies are absolutely critical to avoiding supply bottlenecks and enabling large-scale renewable integration.
"Strengthening and smartening transmission and distribution networks is a prerequisite for bringing new renewable capacity online and reducing congestion, curtailment, and connection delays. Digitalisation, advanced forecasting, and AI-based grid management significantly improve system efficiency by optimising dispatch, balancing variable generation, and anticipating stress points in real time. That said, grids and flexibility are enablers, not drivers in isolation," he said.
Their deployment depends on firm political commitment to net-zero goals and sustained public and private investment. Without long-term policy certainty and sufficient capital for generation, even advanced flexibility technologies cannot prevent supply bottlenecks, Bruegel added.
He said that he does not see an immediate risk of electricity demand outpacing supply in Europe.
Over the past decade, electricity demand has been flat or even declining in many countries. While electrification of transport, heating, and industry will drive a significant increase in load, this is likely to be partially offset by continued gains in energy efficiency and more adequate active demand-side management, he explained.
Most European power systems still enjoy comfortable capacity margins, offering a solid medium-term security buffer, he said.
"The more critical issue is therefore not whether demand can be met, but which technologies will sit at the margin," Bruegel said.
If fossil fuels remain marginal, electrification alone will not deliver the transition. It must be powered predominantly by carbon-free generation, he noted.
"More broadly, risks are more pronounced in regions with rapid demand growth, limited grid investment, or weaker policy frameworks, particularly in parts of emerging markets, where supply adequacy and system reliability may come under greater pressure," Bruegel added.
By Murat Temizer
Anadolu Agency
energy@aa.com.tr
