Global electric consumption persists with significant growth through 2026, overcoming challenges along the way
The global electricity demand is set to experience a robust growth up to 2026, driven by various key factors and exhibiting distinct trends across regions.
Key Drivers
- Air Conditioners and Data Centers: The increasing demand for cooling, due to heatwaves, and the expansion of data centers are significant drivers of electricity demand worldwide.
- Electrification of Transportation: The ongoing shift towards electric vehicles is boosting electricity consumption.
- Industrial and Technological Advancements: Growing industrial activities, particularly in energy-intensive sectors, and rapid advancements in technology, such as AI, are contributing factors.
- Urbanization and Rural Electrification: Urbanization and efforts to improve rural electrification, especially in emerging economies, are driving demand.
Regional Trends
- Asia (China and India):
- China: Anticipated to see a 5.7% increase in electricity demand by 2026, driven by manufacturing and technology sectors, as well as the adoption of electric vehicles and heat pumps.
- India: Projected to have a 6.6% increase, driven by a growing middle class, increased cooling needs, and investments in digital infrastructure.
- These countries are expected to account for about 60% of the global increase in electricity demand.
- Southeast Asia: Steady increases due to rapid urbanization and improvements in rural electrification.
- U.S.: Electricity demand growth is expected to remain above 2% annually, driven by data center expansions.
- Europe: Growth is slower, around 1% for 2025, with a modest acceleration expected in 2026.
Renewable Energy and Emissions Trends
- Renewables: Expected to overtake coal as the primary source of electricity by 2026, with solar and wind covering most of the increase in global electricity demand.
- Emissions: Projected to stabilize in 2025 before slightly declining in 2026, driven by a significant increase in renewable energy capacity.
- The International Energy Agency (IEA) predicts global electricity demand to grow by 3.3% in 2025 and 3.7% in 2026.
- India's electricity demand is anticipated to increase from 4% to 6.6% in 2025 and 2026.
- EU electricity consumption is expected to grow by about 1% this year, with a slight acceleration expected by 2026.
- Although they decreased compared to the 2023 annual average, wholesale electricity prices in the EU and USA remained above the 2019 level between January and June 2025.
- Between January and June 2025, wholesale electricity prices in the EU and USA increased by 30 to 40% compared to the previous year, primarily due to higher gas prices.
- The main drivers of this growth are industry, household appliances, air conditioners, data centers, and electric vehicles.
- The growth in renewable energy, particularly solar and wind, will cover most of the increase in global electricity demand by 2026, as renewables are expected to overtake coal as the primary source.
- The environmental-science field can play a crucial role in financing the expansion of renewable energy, as the transition away from conventional energy sources is essential for mitigating climate-change effects.
- In environmental-science education, teaching about the impact of energy consumption on climate change and the importance of renewable energy can inspire the future workforce to improve the industry's sustainability.
- As electricity demand grows, particularly in regions like Asia (China and India), it's essential to invest in renewable energy sources to reduce emissions and ensure a greener and more sustainable future for the environment.
