Feb 23, 2026
Global electricity demand is expected to increase significantly by 2030.
The latest report from the International Energy Agency (IEA) on the electricity sector predicts that by the end of this decade, renewable energy and nuclear power will together account for 50% of the global power mix, alongside a significant increase in natural gas demand.
According to the report, titled Electricity 2026, global power demand is expected to grow by more than 3.5% annually for the remainder of the decade. This increase will be met by expansions in electricity generation from renewables, natural gas, and nuclear energy.
Released on February 6, the report serves as the IEA’s yearly evaluation of global electricity systems and markets. It offers detailed insights into recent trends and policy changes, along with projections for electricity demand, supply, and carbon dioxide (CO₂) emissions over the five years leading to 2030.
The report indicates that electricity demand is projected to rise at least 2.5 times faster than total energy demand by 2030, reflecting the emergence of the 'Age of Electricity.' This growth is driven by increased industrial electricity usage, the rising adoption of electric vehicles, greater air conditioning demand, and the growth of data centers and AI. While emerging and developing nations are the primary drivers of this demand, advanced economies are also starting to contribute to growth after years of stagnation.
It highlights that global electricity generation from renewables, bolstered by significant solar photovoltaic deployment, is nearing the point of surpassing coal generation. Nuclear power output has also reached new highs. By 2030, renewables and nuclear are expected to generate 50% of the world's electricity, up from 42% currently, as the trend toward low-emission power sources continues.
Natural gas generation is also anticipated to grow through 2030, supported by rising electricity needs in the U.S. and a shift from oil to gas for power in the Middle East. Meanwhile, coal generation is expected to decline to 2021 levels by the end of the decade, resulting in stable global CO₂ emissions from electricity generation until 2030.
The report stresses that such trends in demand, weather-dependent power generation, and changing electricity usage patterns necessitate rapid and efficient upgrades to electricity grids and system flexibility. Currently, over 2.5TW of projects, including renewables and storage, are stalled in global connection queues.
The analysis suggests that advancing grid expansions, deploying grid-enhancing technologies, and reforming regulations to enable more flexible connections could integrate up to 1.6TW of queued projects soon. These improvements would enhance grid efficiency and unlock significant capacity.
IEA’s Director of Energy Markets and Security, Keisuke Sadamori, noted that despite uncertainties in energy markets, global electricity demand is growing much more robustly compared to the past decade. The rise in power consumption through 2030 is expected to equal that of more than two European Unions.
To meet this demand, the report states that annual investments in grids must increase by 50% by 2030. Expanding flexibility will also be crucial, along with maintaining a focus on security and resilience.
The report highlights a sharp increase in utility-scale battery storage installations, which provide vital short-term flexibility. Regions including California, Germany, Texas, South Australia, and the UK have seen considerable growth in battery capacity recently.
Electricity 2026 also points out that rising electricity costs remain a significant concern, with household prices outpacing income growth since 2019, affecting both consumers and industries. Policymakers are therefore focusing on creating policies and regulations that not only encourage investment but also enhance flexibility and efficiency across the power system.
Lastly, the report emphasizes the need for greater efforts to enhance the security and resilience of global power systems, which are increasingly at risk from aging infrastructure, extreme weather, cyber threats, and other vulnerabilities. Modernizing operational practices and bolstering the protection of key infrastructure are essential steps to address these threats.
According to the report, titled Electricity 2026, global power demand is expected to grow by more than 3.5% annually for the remainder of the decade. This increase will be met by expansions in electricity generation from renewables, natural gas, and nuclear energy.
Released on February 6, the report serves as the IEA’s yearly evaluation of global electricity systems and markets. It offers detailed insights into recent trends and policy changes, along with projections for electricity demand, supply, and carbon dioxide (CO₂) emissions over the five years leading to 2030.
The report indicates that electricity demand is projected to rise at least 2.5 times faster than total energy demand by 2030, reflecting the emergence of the 'Age of Electricity.' This growth is driven by increased industrial electricity usage, the rising adoption of electric vehicles, greater air conditioning demand, and the growth of data centers and AI. While emerging and developing nations are the primary drivers of this demand, advanced economies are also starting to contribute to growth after years of stagnation.
It highlights that global electricity generation from renewables, bolstered by significant solar photovoltaic deployment, is nearing the point of surpassing coal generation. Nuclear power output has also reached new highs. By 2030, renewables and nuclear are expected to generate 50% of the world's electricity, up from 42% currently, as the trend toward low-emission power sources continues.
Natural gas generation is also anticipated to grow through 2030, supported by rising electricity needs in the U.S. and a shift from oil to gas for power in the Middle East. Meanwhile, coal generation is expected to decline to 2021 levels by the end of the decade, resulting in stable global CO₂ emissions from electricity generation until 2030.
The report stresses that such trends in demand, weather-dependent power generation, and changing electricity usage patterns necessitate rapid and efficient upgrades to electricity grids and system flexibility. Currently, over 2.5TW of projects, including renewables and storage, are stalled in global connection queues.
The analysis suggests that advancing grid expansions, deploying grid-enhancing technologies, and reforming regulations to enable more flexible connections could integrate up to 1.6TW of queued projects soon. These improvements would enhance grid efficiency and unlock significant capacity.
IEA’s Director of Energy Markets and Security, Keisuke Sadamori, noted that despite uncertainties in energy markets, global electricity demand is growing much more robustly compared to the past decade. The rise in power consumption through 2030 is expected to equal that of more than two European Unions.
To meet this demand, the report states that annual investments in grids must increase by 50% by 2030. Expanding flexibility will also be crucial, along with maintaining a focus on security and resilience.
The report highlights a sharp increase in utility-scale battery storage installations, which provide vital short-term flexibility. Regions including California, Germany, Texas, South Australia, and the UK have seen considerable growth in battery capacity recently.
Electricity 2026 also points out that rising electricity costs remain a significant concern, with household prices outpacing income growth since 2019, affecting both consumers and industries. Policymakers are therefore focusing on creating policies and regulations that not only encourage investment but also enhance flexibility and efficiency across the power system.
Lastly, the report emphasizes the need for greater efforts to enhance the security and resilience of global power systems, which are increasingly at risk from aging infrastructure, extreme weather, cyber threats, and other vulnerabilities. Modernizing operational practices and bolstering the protection of key infrastructure are essential steps to address these threats.