UN 
Global electricity demand is expected to grow by 4 percent this year and in 2025, the fastest growth in 20 years.
According to the International Energy Agency’s (IEA) Electricity Market Mid-Year Update report, the increasing electrification of energy systems around the world is driving rapid growth in demand.
This increase is being driven by economic growth, extreme hot weather, electric vehicles, and the widespread adoption of technologies such as heat pumps.
Global electricity demand grew by 2.5 percent last year. This year and in 2025, demand is expected to grow by about 4 percent. This is the highest annual growth rate since 2007, excluding the global financial crisis and the exceptional recovery from the H1N1 pandemic.
Some of the world’s largest economies are experiencing strong growth in electricity consumption. For example, demand in India is expected to grow by 8 percent this year, driven by strong economic activity and heat waves. Demand growth in China is expected to exceed 6 percent.
In the U.S., growth is expected to reach 3 percent, as economic growth and increased cooling needs, as well as an expanding data center sector, drive demand.
In contrast, electricity demand in the European Union is expected to recover more slowly, increasing by 1.7 percent after two consecutive years of decline due to the energy crisis.
- Half of demand growth to be met by solar power
As the world’s demand for electricity grows, the role of renewable energy in meeting that demand will increase.
For the first time, the amount of electricity generated globally from renewables is projected to exceed that generated from coal.
Solar energy is expected to continue its rapid growth this year and in 2025, with solar accounting for half of the increase in global electricity demand.
Carbon emissions from the global electricity sector are projected to increase slightly this year and remain flat in 2025.
- Data Center Power Demand Growing
Artificial intelligence-driven technologies and data centers are among the factors driving global electricity demand recently.
According to the report, data center electricity consumption is currently limited but growing. Excluding crypto technologies, data center electricity demand will account for about 1 percent of global electricity consumption in 2022. By 2026, this ratio is expected to be between 1.5 and 3 percent.
Despite the rapid growth of electric vehicles, electric vehicles accounted for 0.5 percent of demand in 2022. It is estimated that electric vehicle consumption will approach 2 percent of total demand in 2026.
Aluminum production, an electricity intensive sector, already accounts for 4 percent of global electricity demand.
Commenting on the report, IEA Energy Markets and Security Director Keisuke Sadamori said, “The growth in global electricity demand this year and in 2025 will be one of the fastest in the last 20 years.
“It is encouraging that the share of clean energy in the electricity supply continues to grow,” Sadamori said:
“But this growth needs to be much faster to meet international energy and climate goals. At the same time, it is crucial to expand and strengthen grids to ensure a secure supply of electricity to consumers, and to implement higher energy efficiency standards to reduce the impact of increased cooling demand on electricity systems.” (AA)
