The world’s demand for electricity is projected to rise at its fastest rate in years, driven by robust economic growth, intense heatwaves and increasing adoption of technologies like electric vehicles (EVs) and heat pumps, according to the latest report by the International Energy Agency (IEA).

The Electricity Mid-Year Update forecasts that global electricity demand will grow by around 4% in 2024, up from 2,5% in 2023, marking the highest annual growth rate since 2007, excluding exceptional rebounds after the global financial crisis and the Covid-19 pandemic. This trend is expected to continue into 2025 with another 4% growth projected.

The report highlights the rapid ascent of renewable energy sources, predicting their share of global electricity supply will rise from 30% in 2023 to 35% in 2025.

Solar to beat coal

According to the report, for the first time, electricity generated by renewables worldwide in 2025 is expected to surpass coal-fired generation. Solar PV is forecast to meet roughly half of the growth in global electricity demand between 2024 and 2025 with solar and wind combined potentially accounting for three quarters of the growth.

Despite the sharp rise in renewables, coal-powered generation is unlikely to decline this year due to strong demand growth, particularly in China and India. Carbon emissions from the global power sector are plateauing, with a slight increase anticipated in 2024, followed by a decline in 2025.

However, the report notes significant uncertainties such as the recovery of Chinese hydropower production, which (if sustained) could curb coal-fired power generation and lead to a slight decrease in global power sector emissions in 2024.

“Growth in global electricity demand this year and next is set to be among the fastest in the past two decades, highlighting the growing role of electricity in our economies,” said Keisuke Sadamori, IEA Director of Energy Markets and Security.

“It’s encouraging to see clean energy’s share of the electricity mix continuing to rise but this needs to happen much faster to meet international energy and climate goals. At the same time, it’s crucial to expand and reinforce grids to provide citizens with secure and reliable electricity supply – and to implement higher energy efficiency standards to reduce the impacts of increased cooling demand on power systems.”