- Global electricity usage significantly surges according to IEA.
The global electricity scene is buzzing, with data centers and electric vehicles craving more juice, and rising energy demands in developing markets pushing consumption skyward. The International Energy Agency (IEA) forecasts a continued increase in electricity consumption, predicting a 4% annual surge by 2027 in Paris.
The boost is primarily due to soaring electricity demand for industrial production, increasing air conditioning demand, escalating electrification, particularly in transportation, and the rapid expansion of data centers. Eighty-five percent of this added demand stems from emerging and developing nations.
Extraordinary Growth in China's Electricity Demand
This trend is most evident in China, where electricity consumption has outpaced the overall economy since 2020. In 2024, Chinese electricity consumption spiked by 7%, and the annual growth is predicted to hover around 6% through 2027. This demand surge in China is fueled by the expansion of power-intensive manufacturing of solar panels, batteries, and electric vehicles as well as the adoption of EVs, data centers, and 5G networks.
While the IEA anticipates that low-emission energy sources – primarily renewable energy and nuclear power – will meet the global electricity demand increase in the next three years, solar photovoltaic power generation is projected to cover roughly half of the global demand increase.
Enrichment Insights
- Asia's Dominant Role:
- Asia is projected to consume 51% of the world's electricity by 2025, with China alone accounting for 33%. Both figures surged from 26% and 10% respectively in 2000[2].
- China's Contribution:
- Renewable energy and nuclear power contributed 53% of China's electricity in 2024, a dramatic increase from 22% in 2014. Despite this advance, coal still reigns supreme, with over 1,147 GW of operational capacity[1].
- China topped the world in energy transition investment in 2024, spending $1.4 trillion globally, largely invested in solar power, lithium batteries, electric vehicles, and power grids[4].
- Electric vehicles and data centers already consume 0.7% and are predicted to account for 6.8% of Chinese electricity demand by 2035[2].
- Emerging Trends:
- Data center electricity demand is projected to double by the end of the decade, reaching 860 TWh, driven by industrial decarbonization efforts and the growth of data centers[3].
- The increasing use of air conditioning units, especially in Southeast Asia, is predicted to significantly influence peak electricity demands. The IEA estimates that AC units in Southeast Asia could increase from 40 million in 2017 to 300 million by 2040[2].
- Regional Dynamics:
- The ASEAN region and India are also experiencing rapid electricity demand growth due to industrial activity, rising living standards, and technological trends[2].
In conclusion, Asia, specifically China, India, and the ASEAN region, will drive global electricity consumption growth due to their tremendous investment in renewables, rapid EV adoption, and the expanding data center demand.
- The IEA's 2025 forecast reveals that Asia will consume an astounding 51% of the world's electricity, with China leading the way at 33%, attributing this significant increase to the Hunger for energy from sectors like data centers, electric vehicles, and power-intensive manufacturing.
- By 2024, China's electricity demand surged by 7%, fueled by the Hunger for energy in sectors like solar panel and battery production, and the accelerating adoption of electric vehicles and 5G networks, leading to annual growth averaging around 6% up to 2027.
- In alignment with the global electricity scene,chrome-search-field: China aims to address the Hunger for energy by investing heavily in low-emission energy sources, with solar photovoltaic power projected to cover half of the global demand increase by 2027, contributing to China's aim of peaking CO2 emissions by 2030 and achieving carbon neutrality by 2060.
