Global Electricity Demand Set to Rise by 4% by 2027
The International Energy Agency (IEA) has projected a growth in global electricity demand of approximately four percent by the end of 2027. This increase is anticipated to be tempered by a shift toward low-emission energy sources, which will play a crucial role in mitigating demand pressures.
According to the IEA’s latest report, emerging and developing economies are expected to account for approximately 85 percent of this growth in global electricity demand. Notably, China is forecasted to contribute over half of this increase, reflecting an annual growth rate of six percent through 2027.
The report highlights that since 2020, electricity demand in China has outpaced economic growth. This surge is largely attributed to a robust industrial sector seeking increased electricity consumption, coupled with significant expansion in activities heavily reliant on electricity, such as the production of solar panels, batteries, electric vehicles, and their associated components.
The demand is further bolstered by growing usage of air conditioners, the proliferation of data centers, and the rollout of fifth-generation (5G) networks.
India is also poised to play a significant role, contributing roughly ten percent to the projected global increase in electricity demand. This rise can be traced to vigorous economic activities and the rapid adoption of air conditioning technologies.
Interestingly, demand patterns are expected to evolve in certain advanced economies, such as the United States, where previously stagnant electricity growth is anticipated to accelerate in sectors such as transportation, heating, and data centers.
The report indicates that low-emission energy sources—including renewables and nuclear energy—are expected to keep pace with the growing global demand and reduce the share of coal within the energy mix.
By 2027, solar energy is projected to emerge as the second-largest energy exporter, trailing only electrical energy itself. Additionally, renewable sources are set to surpass coal in energy generation by 2025, leading to a decline in the share of fossil fuel sources to below 33 percent for the first time in a century.
This anticipated shift highlights a significant movement towards sustainable energy practices, aligning with global efforts to decrease environmental impact and meet increasing energy needs through cleaner alternatives.
Key Projections
| Region/Country | Projected Growth Contribution | Annual Growth Rate |
|---|---|---|
| Global Electric Demand | 4% by 2027 | – |
| Emerging Economies | 85% of Global Growth | – |
| China | Over 50% of Increase | 6% |
| India | Approximately 10% | – |
| Coal Share | Below 33% by 2025 | First drop in 100 years |
The data underscores the shifting landscape of global electricity demands, emphasizing the critical role of low-emission energy sources in shaping future energy strategies.
