IEA Forecasts Record Global Power Demand Growth in 2026 and 2027
The International Energy Agency (IEA) has released its mid-year review, predicting that global power demand will rise faster in 2026 and 2027 than in 2025. According to the report, electricity demand will grow by 3.6% in 2026 and 3.8% in 2027, up from 3% in 2025.
The increasing demand for data centres, electric vehicles, air conditioning, and heat pumps is driving this growth. The IEA notes that global electricity consumption is set to reach 30,700 terawatt hours (TWh) in 2027, up from 28,600 TWh in 2025.
The ongoing West Asia conflict could pose a downside risk to the outlook as rising energy prices may weigh on the global economy and lead to an overall consumption slowdown. The report highlights that fuel switching from natural gas to coal is occurring due to elevated gas prices.