Electricity demand to continue to rise

Electricity demand is set to grow by more than 3.5% per year on average over the rest of this decade, according to new forecasts.

The International Energy Agency said rising industrial use of electricity, the continued uptake of electric vehicles, higher air conditioning use and the expansion of data centres and AI will contribute to the sustained growth.

Generation from renewables, natural gas and nuclear will all expand to keep pace with the demand.

By 2030, renewables and nuclear are together set to generate 50% of global electricity, up from 42% today.

“At a moment of significant uncertainty across energy markets, one certainty is that global electricity demand is growing much more strongly than it did over the past decade,” said Keisuke Sadamori, IEA Director of Energy Markets and Security.

 “Meeting this demand will require annual investment in grids to rise by 50% by 2030. Expanding flexibility will also be crucial as power networks continue to evolve – so will a strong focus on security and resilience.”