Surge in Global Electricity Demand: Projected 4% Annual Growth Through 2027
The electricity demand is set to surge significantly in the coming years, driven by key sectors such as industry, data centers, and air conditioning. According to the latest forecasts from the International Energy Agency (IEA), global electricity consumption is projected to grow by 4% annually through 2027.
Surging Electricity Demand Forecasts
The IEA’s recent report, released on Friday, highlights that meeting this rising demand will necessitate the addition of generating capacity equivalent to the entire electrical output of Japan each year.
Key Drivers of Electricity Demand Growth
While data centers in the United States have garnered considerable attention, it is the emerging and developing economies that are expected to contribute the most to this growth. Notably:
- 85% of Global Growth: Emerging markets are projected to account for the majority of the increase in electricity demand.
- China’s Role: Industries in China, including solar panel, battery, and electric vehicle manufacturing, are expected to drive an annual electricity growth rate of 6%, slightly lower than the previous year.
- U.S. Growth: The United States is anticipated to experience significant growth, with demand rising to levels comparable to California’s current consumption by 2027.
Low-Carbon Energy Sources Meet Demand
To meet the anticipated demand, low-carbon sources, predominantly renewables and nuclear energy, are expected to satisfy nearly all of the global electricity demand growth, according to the IEA’s analysis.
For more information on how these trends might affect the energy sector, you can visit the International Energy Agency website. Additionally, learn about the impact of renewable energy initiatives on global consumption in our related articles.
