Global Electricity Demand to Grow at Decade-High Rate: IEA

Paris,
30 Jul (ONA) — The International Energy Agency (IEA) today projected that
global electricity demand will grow at one of its fastest rates in more than 10
years, driven by increased usage in industrial sectors, data centers, and
electric vehicles.

The
agency stated that demand will rise by 3.3% in 2025 and 3.7% in
2026—significantly higher than the 2.6% average recorded between 2015 and
2023—underscoring the need for investments in grids, storage, and more
resilient power systems.

The
IEA also noted that renewables are expected to surpass coal as the world’s
largest electricity source by the end of 2025 or, at the latest, in 2026,
depending on weather conditions and fuel price trends.

In its
report, the agency further predicted record-high nuclear power generation,
supported by reactor restarts in Japan, stable output in the U.S. and France,
and new capacity in Asia.

The
IEA added that gas-fired power generation is likely to replace coal and oil use
in the Middle East and Asia.

Keisuke
Sadamori, the IEA’s Director of Energy Markets and Security, said, “The
strong expansion of renewables and nuclear power is steadily reshaping
electricity markets across many regions.”

He
added, “But this must be matched by increased investment in grids,
storage, and other resilience measures to ensure power systems can meet rising
demand safely and affordably.”

—
Ends/Khalid