Renewable Energy Overtakes Coal as Global Power Demand Rises
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. The report notes that electricity generation costs are increasing due to the ongoing West Asia conflict.
According to the IEA, global electricity consumption is expected to reach 30,700 terawatt hours (TWh) in 2027, up from 28,600 TWh in 2025. This growth is driven by increased demand from data centers, electric vehicles, air conditioning, and heat pumps.
The report highlights the shift in fuel used for generation from natural gas to coal due to elevated gas prices. However, it also notes that the increasing share of renewable energy has played a key role in diversifying electricity supplies, supporting energy security, and limiting the impacts of the shock.