The International Energy Agency (IEA) reports that global electricity demand continues to grow faster than overall energy demand with consumption expected to exceed 29 000 TWh by 2026.
In its Global Energy Review 2026, the IEA states that electricity demand growth is being driven by expanding electrification across industry, transport and buildings as well as increasing use of cooling systems and the rapid expansion of data centres and digital infrastructure.
The report notes that emerging and developing economies account for more than 80% of global electricity demand growth with China and India remaining the largest contributors.
According to the IEA, low-emissions sources are meeting most of the increase in electricity demand. Renewables and nuclear are expected to account for the majority of additional global power generation through to 2026.
Renewables are projected to overtake coal to become the largest source of global electricity generation by around 2026, supported by continued growth in solar photovoltaic and wind capacity.
The IEA indicates that global carbon dioxide emissions from the power sector are stabilising as growth in low-emissions generation offsets rising electricity demand.
At the same time, the report highlights that expansion of electricity networks and system flexibility will be required to accommodate increasing demand and support the integration of variable renewable energy.
The IEA states that investment in grids, storage and other flexibility options will be necessary to maintain system reliability as electricity consumption continues to increase.
