Commodities
Renewables Outstrip Coal as Global Power Demand Soars
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 set to reach 30,700 terawatt hours (TWh) in 2027, up from 28,600 TWh in 2025. This growth is driven by increasing demand from data centres, electric vehicles, air conditioning, and heat pumps.
The report also highlights the shift in fuel used for generation from natural gas to coal due to elevated gas prices. The IEA notes that rising energy prices could weigh on the global economy and lead to an overall consumption slowdown.