Global electricity demand is expected to continue rising strongly over the coming years, reinforcing the growing importance of power within the wider energy system. Research from the IEA show that electricity demand is increasing at a faster pace than overall energy demand. This reflects deep, long-term changes in how economies function, how technology is used, and how energy systems are evolving to support decarbonisation.
Electricity is no longer simply one option within the energy mix. It is becoming the foundation of modern economies, supporting everything from transport and heating to digital services and industrial production. As more sectors move away from direct fossil fuel use and towards electrification, pressure on electricity systems is expected to intensify throughout the rest of the decade.
The Scale of Projected Demand Growth
The IEA’s latest outlook highlights just how significant this growth is expected to be. By 2030, the increase in global electricity consumption is forecast to be equivalent to adding more than two European Union-sized electricity systems to today’s global grid. This comparison underlines the scale of new generation, infrastructure and system upgrades that will be required over a relatively short period of time.
Unlike previous periods of electricity growth, this trend is not driven by a single region or sector. Instead, demand is rising across both emerging and advanced economies, and across a wide range of uses. This broad-based growth makes long-term planning and investment increasingly important.
Key Drivers Behind Rising Electricity Demand
Several major factors are contributing to the continued rise in electricity demand over the coming years:
Near-Term Outlook and Long-Term Trends
In the near term, global electricity demand is expected to grow by more than three per cent per year through the mid-2020s. This is more than double the growth rate of overall energy demand and marks one of the fastest sustained periods of electricity growth in recent decades.
Crucially, this is not seen as a temporary increase. Instead, it reflects structural changes in how energy is produced and consumed. As electricity replaces fossil fuels in more parts of the economy, demand growth is expected to remain strong through to 2030 and beyond.
How Supply is Responding
On the supply side, renewables are expected to meet a large share of the additional electricity demand. Wind and solar generation continue to expand rapidly, supported by falling costs and policy commitments in many countries. Nuclear power and natural gas are also expected to play an important role in supporting system reliability and balancing variable renewable output.
The IEA has indicated that renewables are on track to become the world’s largest source of electricity within the next few years. While this represents a major shift in the global energy mix, it also introduces new challenges around system flexibility and network management.
The Growing Importance of Electricity Networks
One of the most pressing issues highlighted in recent analysis is the condition of electricity grids. Many networks were designed for lower levels of demand and more centralised generation. As demand rises and supply becomes more distributed, existing infrastructure is increasingly under strain.
The IEA has warned that investment in electricity networks must increase significantly by 2030 to keep pace with demand growth. This includes upgrading transmission and distribution systems, improving system flexibility, and making greater use of digital technologies to manage flows more effectively. Without this investment, grid constraints could slow new connections, increase costs and undermine system resilience.
The continued rise in electricity demand signals a fundamental shift in the energy landscape. Electricity is becoming the backbone of economic activity and decarbonisation efforts, placing new expectations on energy systems and those responsible for planning and delivery.
For organisations across the energy sector, understanding these trends is essential. Planning for higher demand, greater complexity and increased infrastructure needs will be critical to maintaining secure, reliable and affordable electricity systems in the years ahead. As the “age of electricity” gathers pace, strategic investment and long-term thinking will be key to supporting sustainable growth and energy transition goals.
