Global electricity demand is projected to grow at its fastest rate in recent years, increasing by nearly 4% annually through 2027, according to a new report from the International Energy Agency (IEA) released today. The surge in power consumption is primarily driven by industrial expansion, rising air conditioning use, transport electrification, and the rapid growth of data centers. The report, Electricity 2025, highlights that the increase in global demand is equivalent to adding more than Japan’s annual electricity consumption each year through 2027.
Emerging and developing economies will account for 85% of this demand growth, with China playing a central role. China’s electricity consumption rose by 7% in 2024 and is expected to grow by an average of 6% per year until 2027, driven by the manufacturing of solar panels, batteries, EVs, and associated materials, alongside rising demand from air conditioning, electric vehicle adoption, and digital infrastructure.
IEA Director of Energy Markets and Security Keisuke Sadamori noted the significance of this accelerating demand, describing it as a marker of a new “Age of Electricity.” He emphasized the challenges governments face in ensuring secure, affordable, and sustainable electricity supply. The issue will be a key topic at the upcoming Summit on the Future of Energy Security, which the IEA is co-hosting with the UK government in London this April.
In the United States, electricity demand is set to rise significantly, with total consumption over the next three years expected to increase by an amount equivalent to California’s current power use. Meanwhile, demand growth in the European Union will be more subdued, returning to 2021 levels by 2027 after substantial declines in 2022 and 2023 due to the energy crisis. The report projects that growth in low-emission energy sources, particularly renewables and nuclear power, will be sufficient to meet the rise in global electricity demand over the next three years.
Solar photovoltaic (PV) generation is expected to account for roughly half of this growth, benefiting from declining costs and strong policy support. In 2024, solar PV overtook coal as the leading source of electricity in the EU, surpassing a 10% share of the region’s power mix. China, the US and India are also expected to see solar PV’s share of total electricity generation reach 10% by 2027. Nuclear power is also making a resurgence, with generation levels set to reach record highs annually from 2025 onward. – By EuroWire News Desk.