According to a report by the International Energy Agency (IEA), global electricity demand is projected to grow by 4% in 2024, marking the highest increase since 2007. This surge is attributed to strong economic growth, widespread heatwaves, and the growing adoption of electric vehicles and heat pumps. Renewable energy sources are expected to expand significantly, with their share in the global electricity supply expected to rise from 30% in 2024 to 35% in 2025.
By 2025, renewable energy is expected to generate more electricity than coal for the first time. The IEA highlights that solar PV alone could account for half of the growth in global electricity demand from 2024 to 2025, with solar and wind together meeting about three-quarters of this increase. Keisuke Sadamori, IEA Director of Energy Markets and Security, noted that while the increase in clean energy’s share of the electricity mix is encouraging, it must accelerate to meet international energy and climate goals.
Electricity demand in the United States is expected to bounce back by 3% in 2024, propelled by economic growth, increased cooling requirements, and the expansion of data centers. Meanwhile, the European Union is predicted to see a modest growth of 1.7% in electricity demand after two years of decline caused by the energy crisis. The IEA also highlighted the growing use of air-conditioning as a significant driver of electricity demand, with heatwaves in the first half of 2024 putting pressure on electricity systems.
The report also emphasizes the rising impact of artificial intelligence on electricity demand, particularly in data centers. The IEA highlighted the significant uncertainties surrounding electricity demand in data centers, particularly related to the pace of deployment, the diverse and expanding applications of artificial intelligence, and the potential for energy efficiency improvements. The IEA calls for better data collection to accurately track electricity consumption in this sector and to understand future trends more effectively.