Economy News – Follow-up
The International Energy Agency’s recent report indicates that global electricity demand is projected to increase by approximately four percent by the end of 2027. However, the transition towards low-emission energy sources is anticipated to mitigate this trend effectively.
Emerging and developing economies are expected to account for about 85 percent of the increase in global demand, with China alone projected to contribute more than half of this growth, achieving an annual growth rate of six percent until 2027.
The report highlights that China’s electricity consumption has outpaced its economic growth since 2020, driven by a robust industrial sector and an accelerating shift towards electricity-intensive production for solar panels, batteries, electric vehicles, and related materials.
The rising demand for electricity is further fueled by the increased use of air conditioning, data centers, and fifth-generation networks.
India is projected to contribute significantly to the global demand increase, with expectations of a ten percent share, influenced by strong economic activity and a rapid surge in air conditioner usage.
The report also notes a shift in demand trends in some advanced economies, particularly in the United States, where stagnation in electricity growth has been observed. However, rapid demand growth is anticipated in sectors such as transportation, heating, and data centers.
According to the agency, low-emissions energy sources, including renewable energy and nuclear power, are expected to keep pace with global demand growth, and will continue to diminish the share of coal in the energy mix.
By 2027, solar energy is projected to become the second-largest energy exporter, following electricity. Moreover, renewable energy sources are forecasted to surpass coal in electricity generation by 2025, reducing the share of fossil fuels to below 33 percent for the first time in a century.
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