IEA: Global electricity demand growth expected to hit highest level in over a decade

The International Energy Agency (IEA) stated that global electricity demand will continue to rise at a pace not seen in over a decade, driven by increased industrial electricity consumption and the rapid growth of data centers and electric vehicles.

The IEA forecasts that global electricity demand will grow by 3.3% in 2025 and 3.7% in 2026, far exceeding the average annual growth rate of 2.6% between 2015 and 2023. The agency also emphasized that countries need to expand investments in power grids, energy storage systems, and flexible power dispatch.

The report notes that if weather and fuel price trends align, renewable energy will officially surpass coal as the world's largest power source by the end of 2025 or by 2026 at the latest.

Meanwhile, nuclear power generation is expected to reach a historic high, primarily driven by the restart of nuclear power plants in Japan, stable power supply in the United States and France, and the commissioning of new units in Asia.

The IEA also predicts that natural gas power generation will continue to replace coal-fired and oil-fired power plants in the Middle East and Asia.

Keisuke Tsuchiya, Director of Energy Markets and Security Affairs at the IEA, said: “The strong expansion of renewable energy and nuclear power is continuing to reshape the power market landscape in most regions.”

He added: “However, this must be accompanied by investments in larger grids, energy storage systems, and other flexible dispatch resources to ensure that power systems can meet rising demand in a safe and affordable manner.”

The IEA forecasts that carbon emissions from power generation will peak in 2025 and slightly decline in 2026, but this will depend on weather conditions and economic development.

The report also notes that emerging Asian economies are expected to account for 60% of global electricity growth by 2026, with China's electricity growth rate rising from 5% in 2025 to 5.7% in 2026, and India's from 4% to 6.6%.

In the United States, the expansion of data centers is expected to drive electricity growth at an annual rate exceeding 2% through 2026. In the European Union, growth is projected to be slower, with an annual rate of approximately 1% this year, accelerating slightly by 2026.