Global power demand to rise by %4 in 2024 and next year: Int. Energy Agency

By Handan Kazanci

ISTANBUL (AA) - Global electricity demand is expected to grow %4 this year and in 2025, the fastest pace in nearly two decades, according to a new report by the International Energy Agency (IEA) on Friday.

This rise is fueled by strong economic growth, extreme heatwaves and rising uptake of technologies that run on electricity such as electric vehicles and heat pumps, the Paris-based energy watchdog's "Electricity Mid-Year Update" found.

Excluding the exceptional rebounds witnessed following the global financial crisis and the COVID-19 pandemic, the figure illustrates the highest annual growth rate since 2007, the report said.

"Renewable sources of electricity are also set to expand rapidly this year and next, with their share of global electricity supply forecast to rise from 30% in 2023 to 35% in 2025," the report added.

According to the report, the share of electricity generated by renewables globally next year is predicted to eclipse the amount generated by coal for the first time.

- Solar to fulfill nearly half of growth in global electricity demand

Solar PV alone is predicted to meet approximately half of the growth in global electricity demand over 2024 and 2025 with solar and wind combined meeting as much as three-quarters of the growth, according to the report.

The report also foresees that despite the intense boosts in renewables, global power generation from coal is unlikely to drop this year due to the strong growth in demand, particularly in China and India.

Chinese hydropower production recovered strongly in the first half of 2024 from its 2023 low. If this upward trend continues in the second half of the year, it could curb coal-fired power generation and result in a slight decline in global power sector emissions in 2024.

Some of the world's major economies are registering particularly strong increases in electricity consumption such as India and China with expectations of surge of 8% and 6%, respectively.

Electricity demand in the US is forecast to rebound this year by 3% amid steady economic growth, rising demand for cooling and an expanding data center sector, with 1.7% growth in electricity demand in the EU.

The growing use of air-conditioning is expected to remain a powerful driver of electricity demand around the world as several regions faced extreme heatwaves in the first half of this year.

The report also mentions the rise of artificial intelligence, as the electricity demand of data centers is drawing increased attention, highlighting the wide range of uncertainties concerning the electricity demand of data centers.

Commenting on the report, the IEA Director Of Energy Markets And Security, Keisuke Sadamori, said, "It's encouraging to see clean energy's share of the electricity mix continuing to rise, but this needs to happen at a much faster rate to meet international energy and climate goals."

"At the same time, it's crucial to expand and reinforce grids to provide citizens with secure and reliable electricity supply – and to implement higher energy efficiency standards to reduce the impacts of increased cooling demand on power systems," Sadamori added.