The International Energy Agency’s (IEA) Electricity Mid-Year Update 2026 forecasts that global electricity demand will continue to grow rapidly, rising by 3.6% in 2026 and 3.8% in 2027. Growth is being driven by electrification, expanding data centers, electric vehicles, air conditioning, and industrial activity. The report expects global electricity consumption to reach about 30,700 terawatt-hours (TWh) by 2027, reflecting the continued shift toward an increasingly electrified global economy.
The report also projects that renewables will become the world’s largest source of electricity generation in 2026, led by strong growth in solar power, while nuclear generation also increases. However, higher natural gas prices are expected to boost coal use in some regions, causing power-sector COâ‚‚ emissions to rise slightly in 2026 before stabilizing in 2027. The IEA emphasizes that continued investment in electricity grids and system flexibility will be essential to ensure reliable and affordable power supplies.
