Global Electricity Demand Forecast: Growth to 2027

Global Electricity Demand Set for Significant Increase

Forecasts from the International Energy Agency (IEA) indicate substantial growth in electricity demand, fueled by sectors like industry, data centers, and air conditioning.

Projected Demand Growth

The IEA anticipates a 4% annual increase in global electricity needs through 2027. Satisfying this rising demand will necessitate the addition of generating capacity equivalent to the entire nation of Japan each year.

Regional Drivers of Growth

Although U.S. data centers have garnered considerable attention, the majority – approximately 85% – of this growth is projected to originate in emerging and developing economies.

Specifically, Chinese industries, encompassing the production of solar panels, batteries, and electric vehicles, are expected to contribute to a 6% annual increase in the country’s electricity consumption. This rate represents a slight decrease compared to the previous year.

U.S. Demand and Low-Carbon Sources

While lower than China’s, electricity demand growth in the U.S. will remain substantial. The anticipated increase through 2027 is estimated to equal the current electricity demand of the state of California.

Notably, the IEA predicts that nearly all of this global demand growth will be met by low-carbon sources, primarily renewables and nuclear power.

Key Takeaways

• Global electricity demand is projected to rise by 4% annually through 2027.
• Emerging economies will be the primary drivers of this growth.
• China’s industrial sector will significantly contribute to increased demand.
• The U.S. will experience substantial demand growth, comparable to California’s current needs.
• Renewable energy and nuclear power are expected to cover nearly all demand increases.