The International Energy Agency’s “Electricity 2025” report predicts a significant surge in global power consumption, with annual growth of nearly 4% from 2020 to 2027. This represents an increase equivalent to Japan’s entire electricity use over the next three years.
Key drivers behind this growth include industrial expansion, rising air conditioning demand, electrification of transportation, and data center expansion. Emerging economies, particularly China, account for about 85% of this growth. China’s electricity consumption has surpassed its economic growth since 2020, with a 7% increase in 2024 alone.
The report highlights the need for governments to ensure secure, affordable, and sustainable electricity supply as global demand accelerates. Emerging economies will drive most of the growth, but advanced economies are also expected to see increased demand after a period of stagnation.
In the US, electricity demand is projected to grow enough to add California’s total power consumption to the grid over the next three years. Europe will see more modest growth, with demand returning to 2021 levels by 2027.
On the positive side, renewables and nuclear power are expected to keep up with this rising demand. Solar power is forecast to meet roughly half of the world’s additional demand, driven by continued cost drops and policy support. Nuclear energy is also making a strong comeback, with its generation expected to hit new highs each year from 2025.
Carbon emissions from global electricity generation are expected to level off after rising about 1% in 2024. However, the report highlights challenges for electricity grids, including weather-related events and volatility in wholesale electricity prices. Policymakers must address grid flexibility as demand continues to rise.
According to Ember insights director Dave Jones, the “Age of Electricity” requires a shift towards clean electricity to realize its benefits. Increased investment in clean energy is necessary to meet growing demand without relying on coal and gas generation.
Source: https://electrek.co/2025/02/13/iea-power-use-soars-through-2027-but-renewables-will-keep-up