IEA forecasts the fastest increase in power demand since more than a decade
The International Energy Agency announced on Wednesday that global electricity demand will increase at the fastest rate in more than a decade. This is due to increased industrial use, data centres, and electric vehicles. The International Energy Agency said that demand will rise by 3.3% between 2025 and 2026. This is well above the 2.6% seen from 2015 to 2023. Investments are needed in grids and storage, as well as making the system more flexible.
The IEA stated that renewable energy will overtake coal by 2025, or 2026, at the very latest, depending on weather conditions and fuel prices trends.
The report also said that nuclear power production is expected to reach record highs, thanks to reactor restarts and steady generation in France and the U.S., as well as new capacity in Asia.
The IEA stated that gas-fired power generation will continue to replace coal and oil in Asia and the Middle East.
Keisuke Sadamori, Director of Energy Markets and Security at the IEA said: "The rapid expansion of renewables and nucleic power is reshaping the electricity markets in many areas."
He said: "But it must be matched with greater investment in grids and storage, and other flexible sources to ensure that power systems can meet growing demand safely and affordably."
The IEA predicts that carbon emissions from electricity production will plateau in 2025, and then slightly decrease in 2026. However, this could be affected by weather conditions and economic developments.
The report stated that the growth of China is expected to reach 5.7% by 2026 from 5% last year, and India's growth to be 6.6% by 2026 from 4% in 2015.
The expansion of data centres in the United States is expected to maintain annual electricity demand above 2% growth through 2026. The report stated that growth in the European Union is expected to be around 1% in this year's period, and then a slight acceleration in 2026. (Reporting and editing by Barbara Lewis; Forrest Crellin)
(source: Reuters)
