Expected increase in global electricity demand through 2027 as energy-intensive industries expand
The world’s electricity consumption is set to rise at nearly 4% annually through 2027, marking the fastest growth rate in recent years, according to the Electricity 2025 report released by the International Energy Agency (IEA).
This surge in demand—equivalent to adding more than Japan’s total annual electricity use each year—is driven by expanding industrial production, increased air conditioning use, rising electrification (especially in transport), and the rapid growth of data centres.
Global electricity consumption is set to rise at nearly 4% annually through 2027, the fastest growth rate in recent years
Emerging and developing economies will account for 85% of this demand growth, with China leading the trend. Since 2020, China’s electricity consumption has outpaced its economic growth. In 2024 alone, it rose by 7% and is expected to grow by around 6% annually through 2027. This is largely due to both traditional energy-intensive industries and booming sectors like the manufacturing of solar panels, batteries, and electric vehicles. Additional demand comes from the expansion of air conditioning, 5G networks, and data centres.
“The acceleration of global electricity demand highlights the significant changes taking place in energy systems around the world and the approach of a new Age of Electricity,” said Keisuke Sadamori, IEA Director of Energy Markets and Security. “It also presents evolving challenges for governments to ensure secure, affordable and sustainable supply.”
While developing economies dominate the demand growth, advanced economies are also seeing a rebound. In the U.S., electricity demand is set to increase by an amount equivalent to California’s current usage by 2027. In contrast, the EU will see more modest growth, with consumption only expected to return to 2021 levels by 2027, following sharp declines during the energy crisis of 2022–2023.
The acceleration of global electricity demand highlights the significant changes taking place in energy systems around the world and the approach of a new Age of Electricity
The IEA projects that growth in low-emissions electricity sources—mainly renewables and nuclear—will be sufficient to meet all the additional global demand through 2027. Solar PV is expected to supply about half of this demand growth, thanks to falling costs and supportive policies. In 2024, solar PV overtook coal in the EU’s power mix, surpassing a 10% share. China, the U.S., and India are all on track to reach similar levels by 2027.
Growth in low-emissions electricity sources—mainly renewables and nuclear—will be sufficient to meet all the additional global demand
Meanwhile, nuclear energy is experiencing a strong resurgence, with electricity generation from nuclear expected to hit new records every year from 2025 onwards. These developments are projected to keep CO₂ emissions from global electricity generation flat over the next few years, following a 1% rise in 2024.
The report also reviews several major stress events faced by electricity systems in 2024, including U.S. winter storms, Atlantic hurricanes, weather-driven blackouts in Brazil and Australia, and hydropower shortfalls due to drought in Latin America. These underscore the growing need for grid resilience and system flexibility.
Source: IEA
