Average increase in electricity consumption by 2027 is expected to be 4% per year – Air quality issues
According to a new IEA report released today, global electricity consumption will grow at the fastest rate in recent years until 2027, close to 4% per year, as electricity usage across a range of industries across the economy the climb.
Electric Power 2025This is the latest version of the IEA’s major market analysis of the industry, predicting that global demand growth will be equivalent to increasing annual electricity consumption in Japan every year to 2027. The demand for electricity is increased for industrial production, the transportation department is leading and the rapid expansion of data centers.
Most additional demand over the next three years will come from emerging economies, accounting for 85% of demand growth. Since 2020, electricity demand has grown the most significantly in China than the overall economic growth rate. China’s electricity consumption grew by 7% in 2024, and an average growth of about 6% by 2027. The industrial sector is partly due to the rapid expansion of power-intensive manufacturing in traditional energy-intensive sectors, solar panels, batteries, electric vehicles and related materials. Air conditioners, powered by electric vehicles, data centers and 5G networks are other contributors.
“The acceleration of global electricity demand highlights major changes in energy systems around the world and the approach to a new era of electricity. But it also presents evolving challenges for governments to ensure a safe, affordable and sustainable power supply. ” said Keisuke Sadamori, director of energy markets and security at IEA. “While emerging and developing economies will drive most of the growth in global electricity demand growth in the coming years, consumption in many advanced economies is also expected to increase after a relatively stagnant period. Policy makers need to pay close attention to these shifts. The IEA will be chaired in London with the UK government in April.
In the U.S., strong growth in electricity demand is expected to be equivalent to California’s current increase in electricity to the national total over the next three years. It is predicted that the growth of electricity demand in the EU will become more modest until 2027, with the main decline in 2022 and triggered by the energy crisis in 2023.
The new report predicts that growth in low emission sources, mainly renewable and nuclear, is generally sufficient to cover all growth in global electricity demand over the next three years. In particular, power generation from solar PV is expected to reach half of global electricity demand growth by 2027 and supported by continued cost reduction and policy support. Solar PV generation exceeds EU coal in 2024, with solar energy having more than 10% of the electricity portfolio. From now until 2027, China, the United States and India all expect the share of solar PV generation to reach 10%. At the same time, nuclear power is making a strong comeback, and its power generation is reaching new highs. Starting in 2025, it will be during the forecast period every year. Due to these forecast trends, global carbon dioxide emissions from power generation are expected to stabilize in the coming years after a growth of about 1% in 2024.
The report examines some of the major strains facing the power system in 2024, including winter storms in the United States, hurricanes in the Atlantic Ocean, power outages caused by extreme weather in Brazil and Australia, and reducing hydropower in Ecuador, Colombia and Mexico. The report notes that these events underline the importance of ensuring that the power system is more resilient.
It also focuses on the critical role of weather on power systems and the rising volatility of wholesale electricity prices in some regions, indicating an increasing demand for system flexibility. Although it remains relatively rare worldwide, the incidence of negative electricity prices is still rising in some electricity markets. These events are inadequate in system flexibility due to technical, regulatory or contractual reasons.
Source: “Growth in global electricity demand will accelerate in the coming years as the sector aspires to generate expands,” 14 February 2025, International Energy Agency press release.
Above and corresponding, connected home page function feature image: International Energy Agency
