IEA: Rapidly growing demand for electricity is changing the global energy market
Global electricity consumption will grow at one of the fastest rates in the last decade by 2026, according to a new forecast by the International Energy Agency (IEA). Demand is being driven by industry, data centers, electric vehicles and climate control systems, and will be met mainly by renewable resources, natural gas and nuclear energy.
Electricity demand is expected to grow by 3.3% in 2025 and 3.7% in 2026 – more than twice as fast as total energy demand. By 2025 or 2026, renewable energy sources will surpass coal as the world’s largest source of electricity, while nuclear power generation will reach record levels. As a result, CO₂ emissions from electricity generation could stabilize in 2025 and decline slightly in 2026.
The increase will be driven mainly by China and India, which will account for 60% of global consumption growth, while demand in the US will continue to be stimulated by the construction of data centers. Meanwhile, consumption growth in the EU is slower – around 1% this year, with a slight increase in 2026. At the same time, electricity prices in the EU are still twice as high as in the US and significantly higher than in China, creating challenges for energy-intensive industries.
Source: IEA, 30.07.2025.