The world’s appetite for electricity is booming – and it’s not slowing down.
Global power demand is set to jump by 3.3% in 2025 and 3.7% in 2026, according to the IEA’s latest Electricity Mid-Year Update.
That’s more than twice the growth rate of total energy demand.
The reason? Everything from factories and electric vehicles to data centres and air-con units is guzzling more juice than ever.
Even though that’s a slight slowdown from 2024’s 4.4% leap, it still dwarfs the average of 2.6% seen between 2015 and 2023.
“The growth in global electricity demand is set to remain robust through 2026, despite an uncertain economic backdrop,” said Keisuke Sadamori, the IEA’s Director of Energy Markets and Security.
So what’s powering the demand?
Renewables are set to overtake coal as the top source of electricity by 2025 or 2026.
Solar and wind are being turbocharged by falling costs and policy support. Meanwhile, nuclear is making a comeback – think Japan’s reactor restarts, strong output in the US and France, UK’s go ahead for Sizewell and a building spree in Asia.
Gas isn’t out of the picture either.
It’s playing a critical role in booting out coal and oil from the mix, especially in regions keen to decarbonise without destabilising supply.
As a result, CO₂ emissions from electricity are forecast to flatline in 2025 and begin a slight fall in 2026 – though weather shocks or price spikes could shake that up.
Emerging Asia is leading the charge.
China and India will account for 60% of the world’s new power use in the next two years. In 2026 alone, India is forecast to grow demand by 6.6%.
In the US, it’s all about data. The AI boom means data centres are pushing electricity demand past 2% growth – more than double the past decade’s average.
But in Europe, the picture’s slower. Demand will crawl up just 1% this year, with a modest pick-up expected in 2026.
And the price pain? European and US wholesale electricity prices were up 30–40% in early 2025 thanks to pricier gas – although still down on 2023.
However there is a twist: negative prices are popping up more often, showing just how urgently grids need reform, storage and flexibility concludes the report.
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