IEA: Global electricity demand will grow by 4% until 2027
The IEA reported on Friday that the global electricity demand will grow more than Japan's total annual consumption through 2027. However, the expansion of energy sources with low emissions should help to offset this trend.
The IEA said that the 85% growth in global demand is expected to come from emerging and developing economies. China will account for more than half the growth with a 6% annual growth rate.
China's power demand has grown faster than its economy since 2020, spurred by a power-hungry industrial sector and the rapid expansion of electricity-intensive manufacturing of solar panels, batteries, EVs and associated materials, the report said.
Additional contributors include air conditioning, data centers and 5G networks.
India, which has a robust economy and a rapidly increasing air conditioning market, is expected to contribute ten percent of the global rise.
The IEA stated that some advanced economies, such as the U.S., are seeing a reversal of previously stagnant demand, due to the rapid growth in electrification for sectors such as transport, heating, and data centres.
The IEA revised its July forecast for the European Union down by one percentage point, to a growth of 1.6% in 2025.
The report stated that despite the fact that demand grew in 2024, it is unlikely to reach its level of 2021 until at least 2027.
The report stated that low-emission energy sources, such as nuclear and renewables, are expected to meet global demand growth trends by continuing to erode coal's share of the power mix.
Solar power is predicted to be the second-largest source of low-emissions in 2027, behind hydropower. Renewables will also surpass coal-fired energy in 2025 when the polluting fuel's share drops below 33% for first time in more than 100 years. (Reporting and editing by Jan Harvey; Forrest Crellin)
(source: Reuters)
