IEA projects 4 percent hike in global electricity demand in 2024, 2025
Date
7/21/2024 3:39:39 AM
(MENAFN) The International energy Agency (IEA) has projected a notable increase in global electricity demand, estimating a 4 percent growth this year and again in 2025. This rate of growth, the fastest in nearly two decades, is driven by a combination of robust economic expansion, extreme heatwaves, and a rising adoption of electricity-dependent technologies, including electric vehicles and heat pumps, as detailed in the IEA's "Electricity Mid-Year Update."
The report highlights that, excluding the extraordinary surges seen after the global financial crisis and the COVID-19 pandemic, this growth rate is the highest annual increase since 2007. It underscores the significant role that renewable energy sources are expected to play in meeting this demand. The share of electricity generated from renewables is forecasted to increase from 30 percent in 2023 to 35 percent by 2025, reflecting a rapid expansion in this sector.
A key milestone anticipated for next year is that the proportion of global electricity generated by renewable sources will surpass that generated by coal for the first time. Solar photovoltaic (PV) technology alone is expected to account for about half of the increase in global electricity demand over the next two years. When combined with wind energy, renewables are projected to meet up to three-quarters of this growth.
Despite these advancements in renewable energy, the report indicates that coal power generation is unlikely to decline this year due to the significant rise in overall demand, particularly in China and India. However, there is potential for a reduction in coal-fired power generation if Chinese hydropower production continues its recovery from 2023 lows. Should this trend persist, it may lead to a slight decrease in global power sector emissions in 2024.
The report also notes that some of the world's largest economies, such as India and China, are experiencing particularly strong increases in electricity consumption. India is expected to see an 8 percent surge, while China’s electricity consumption is projected to grow by 6 percent, underscoring the substantial impact of these major economies on global energy trends.
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