IEA Forecasts Record Global Power Demand Growth
The International Energy Agency (IEA) has released its mid-year review, predicting a significant increase in global power demand over the next two years. The agency forecasts that electricity consumption will grow by 3.6 per cent in 2026 and 3.8 per cent in 2027, up from 3 per cent in 2025.
The increasing demand is driven by the rising adoption of electric vehicles, data centres, air conditioning, and heat pumps. As a result, global electricity consumption is expected to reach 30,700 terawatt hours (TWh) in 2027, up from 28,600 TWh in 2025.
The ongoing West Asia conflict could pose a risk to this outlook, as rising energy prices may weigh on the global economy and lead to a consumption slowdown. The report notes that fuel switching from natural gas to coal has been prompted by elevated gas prices in both Asia and Europe.