Global electricity demand rose by 4.3% in 2024 and is forecast to continue to grow at close to 4% each year up to 2027. Over the next three years, global energy consumption is predicted to rise by 3,500TWh, corresponding to adding more than the usage of Japan to the world’s electricity consumption each year.

The cause of this rising demand can be attributed to many sources, but the IEA particularly highlights the rise in air conditioner ownership, data centres and 5G networks, and EV charging needs as drivers of the growing demand.

Renewable and low-carbon sources of electricity generation are becoming increasingly dominant in the global energy mix. Much of the growth of renewable energy capacity around the world is down to the increasing dominance of solar PV, the price of which has been falling for an extended period of time.

Globally, solar PV generation hit the 2,000TWh mark in 2024, making up 7% of global electricity generation in 2024. This market share has risen from the previous year, as solar energy made up 5% of global electricity generation in 2023. The IEA predicts that over the next three years, roughly 600 TWh of additional electricity will be generated from solar each year, equivalent to Korea’s annual consumption.

While electricity demand globally is growing, both in emerging economies and more developed states, the growth of renewables is set to meet this surge in demand. Renewables are set to meet around 95% of electricity demand growth between now and 2027 worldwide.

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