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Global Electricity Demand: The Looming Surge

A significant escalation in

Global electricity demand

The adoption rate of smartphones is expected to grow over the coming three years.

Electric vehicles (EVs)

The spread of

Energy consumption of data centres

And the increasing need for

The air conditioner

worldwide. The International Energy Agency’s (IEA) latest annual report detailing the global electric landscape includes this projection.

According to IEA forecasts

Demand for electricity is on the rise

It is estimated that the average annual growth rate will be around 4% through 2027. This growth, to put it in context, is the equivalent of adding to global demand each year the annual electricity consumption from more than one Japan. Keisuke Sadamori, director of Energy Markets and Security for the IEA emphasized this unprecedented surge by stating the world has entered a new “Age of Electricity.” Electricity is the driving force behind the shift. It’s a combination of the trend towards electrification in the transportation sector, an increased dependence on household electric appliances and the development of data centers that consume a lot energy to support the digital economy.

The IEA predicts a 2-percent increase in power consumption annually, even in countries like the United States. Although the demand for electricity has been relatively stable in the United States in the past decades, it is expected to rise by 2% per year until 2027. It would be like adding California’s electricity demand to the overall national demand. Lawrence Berkeley National Laboratory also confirms this.

Expanding the horizons of

data centers

The exponential rise of Artificial Intelligence is a major contributor to this.

Energy consumption

. According to a report released by the Lawrence Berkeley National Laboratory in December,

Data center energy consumption in the U.S.

The demand for electricity could potentially double or triple in 2028 and consume as much as 12 percent of total national consumption. AI needs a huge amount of computing power, which is why these centres are necessary.

The IEA highlights that although

Use of data centers energy

While the demand for electricity in some areas is significant, globally it represents only a fraction.

According to the IEA report, 85% of global growth in energy demand is expected to come from emerging economies. The adoption of renewable energy is the biggest factor in driving growth within these regions.

The air conditioner

. Air conditioning is common in many developed nations, but it remains limited for some of the more affected countries.

Temperatures and climate change

. In India for example, less than 18% of homes have air conditioning while the number is only 5% in Nigeria.

This rapid increase in violence is a sign of the dire situation that we are facing.

power demand

It is possible that countries will emit more greenhouse gases if they rely on fossil-fuels to generate their electricity.

The increase in

Demand for electricity

This coincides with an increase in global renewable energy capacities and other

Power sources with low carbon emissions

. The IEA estimates that renewable energy combined with nuclear power can meet the world’s anticipated electricity growth. The use of

nuclear power

As new reactors begin operations and others which have lain idle for some time are brought online, it is anticipated that electricity generated from nuclear power will reach historic levels. Electrical power derived from

Solar energy production

About half the projected total

power demand growth

.

Solar energy

The electricity generated by both sources is estimated to be 10 percent of national needs

By 2027, China will be able to trade with the U.S.

.

Within the European Union electricity generated by

Solar power is now more powerful than ever

In 2024, coal will generate a large amount of energy. This is a major milestone for the switch to cleaner sources. The robust growth of

Low-carbon sources of energy

The IEA expects that global

carbon dioxide emissions

The electricity industry is predicted to reach a plateau in three years.

It is good to see that the world has stabilized after a series of years with record temperatures. It is important to recognize that this stabilization does not go far enough to reduce emissions to the levels required by science to avoid the worst consequences.

Climate change

.

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