The International Energy Agency (IEA) forecasts that global electricity demand will increase by 3,500 terawatt-hours (TWh) by 2027, driven by factors such as electrification, industrial growth, and rising energy consumption from air conditioning and data centers. This surge, projected at a 4% annual growth rate, will be led by emerging economies, particularly China and India, which are expected to contribute 85% of the demand increase.

In China, electricity consumption is anticipated to grow at 7% annually due to industrial activities and the expansion of the solar PV and battery sectors. India will also see substantial growth, with a projected 6.3% rise in demand, mainly attributed to economic development and increased use of air conditioners.

As the demand for electricity rises, renewable energy sources like solar PV and wind energy will play a key role in meeting the needs, with solar PV expected to contribute nearly half of the growth. By 2027, renewables are set to surpass coal as the world's dominant electricity source. Nuclear energy will also expand in countries like China, India, and France.

The report highlights the need for grid modernization and increased energy storage to ensure reliable supply. With battery storage and smart grid technologies crucial for integrating variable renewables, governments and industries are urged to prioritize investment in clean energy solutions and infrastructure.

Source: iea.org