IEA expects 4% increase annually in electricity consumption

The International Energy Agency expects global power consumption to rise to almost four percent annually until 2027. The demand for electricity is growing faster than in recent years because industries in many countries need more electricity.

The increase is primarily due to the growing use of electricity for industrial production, the rising demand for air conditioning, increasing electrification – particularly in the transport sector – and the rapid expansion of data centers.

Emerging economies

Most of the additional demand over the next three years will come from emerging and developing economies, which account for 85% of the demand growth. The trend is most pronounced in China, where the demand for electricity has grown faster than the overall economy since 2020.

The country already has an extensive industry and is also making more and more solar panels, electric cars, and batteries, which require extra energy.

Evolving challenges for governments

The IEA’s director of energy markets and security, Keisuke Sadamori, said that the acceleration of demand growth “highlights the significant changes in energy systems worldwide. But it also presents evolving challenges for governments in ensuring secure, affordable and sustainable electricity supply.”

The IEA expects electricity demand to increase by two percent in the US and a ‘more modest’ increase in the European Union. It will only rise back to its 2021 levels by 2027, following the major declines in 2022 and 2023 triggered by the energy crisis.

The growth of power generation can compensate for the additional electricity demand. The extra solar panels added worldwide will probably provide half the required power. Nuclear power plants will also supply more and more electricity in the coming years.