Growth in global electricity demand is set to accelerate in the coming years as power-hungry sectors expand. The world’s electricity consumption is forecast to rise at its fastest pace in recent years, growing at close to 4% annually through 2027 as power use climbs in a range of sectors across the economy, according to a new IEA report. Drivers include industrial production, rising air conditioning needs due to higher temperatures, electrification (especially in transport), and the rapid expansion of data centers.
The IEA Electricity 2025 report, published by the International Energy Agency (IEA), provides a detailed analysis and forecast of global electricity markets from 2025 to 2027. Released in early 2025, it highlights key trends in electricity demand, supply, and emissions, reflecting the ongoing transformation of energy systems worldwide. Increase in electricity consumption through 2027 expected to average around 4% annually, driven by growing use for industry, air conditioning, electrification and data centres, the fastest pace in nearly two decades (excluding post-crisis rebounds in 2010 and 2021). This translates to an additional 3,500 terawatt-hours (TWh) by 2027 – more than Japan’s current annual electricity use added each year.
Emerging and developing economies will account for 85% of this demand growth, with significant contributions from China, India, and the United States. Low-emission sources – renewables (solar, wind, hydro) and nuclear – are expected to meet all global electricity demand growth through 2027.
Solar PV is a standout, forecast to provide about half of the demand growth, surpassing coal as the second-largest low-emission source by 2027 (after hydropower). Its share in the global mix will exceed 10% in key markets like the EU, China, the US, and India by 2027.
Renewables as a whole are set to overtake coal in 2025, reaching a 37% share of global electricity generation by 2026 (up from 30% in 2023). Coal’s share is expected to drop below 33% in 2025, a historic low in a century.
Nuclear power will hit record highs annually from 2025 onward, driven by recoveries in France and Japan, and new reactors in China, India, and Korea. By 2027, low-emission sources will account for 47% of global generation (up from 41% in 2024).
The report notes increasing strains on electricity grids, with 2024 events like storms in the US, hurricanes, and droughts in Latin America exposing vulnerabilities. “Dunkelflaute” events (low wind and solar output) in Northern Europe in late 2024 and early 2025 caused price spikes but were managed without supply disruptions, signaling resilience but also the need for flexibility. Negative wholesale electricity prices are rising in markets with high renewable penetration (e.g., South Australia, Germany), indicating insufficient system flexibility and a need for better storage and demand response.
/IEA, X/