Renewables to Meet 95% of Global Electricity Demand Growth

Global Electricity Demand Growth

The International Energy Agency (IEA) projects that low-emission energy sources—primarily solar, wind, and hydropower will account for 95% of the global electricity demand increase through 2027. By 2025, renewables are expected to generate over one-third of the world’s electricity, surpassing coal for the first time. Solar photovoltaic alone is anticipated to contribute roughly half of the overall demand growth during this period.

Global electricity demand rose by 4.3% in 2024 and is forecasted to maintain a growth rate of close to 4% annually through 2027. Over the next three years, worldwide electricity consumption is projected to increase by an unprecedented 3,500 terawatt-hours (TWh)—equivalent to adding more than the entire electricity consumption of Japan each year.

• Emerging economies are expected to drive the majority of this growth, accounting for about 85% of the additional demand through 2027. In 2024, China made up more than half of the global electricity demand growth, with consumption going up by 7%. However, this isn’t a new trend; since 2020, China’s power consumption has grown faster than its overall economy, highlighting the rapid spread of electrification across all sectors. The industrial sector accounted for almost 50% of the country’s demand growth between 2022 and 2024. 
• Electrification in China has taken place at a dramatic pace in the past decade. Electricity now makes up 28% of China's final energy consumption, compared to 22% in the United States and 21% for the European Union.  
• Electricity usage by data centres in China is also expanding rapidly. Projections suggest that consumption could double by 2027, although estimates remain uncertain. In 2024, data centres in China consumed more than 100 TWh of electricity.
• Meanwhile, in advanced economies, electricity consumption in 2024 remained largely unchanged compared with 2021. However, these economies are still expected to contribute around 15% to global electricity demand growth during the 2025–2027 period.
• Artificial intelligence (AI) is emerging as a significant factor in enhancing energy efficiency across carbon-intensive industries. A recent white paper published by the World Economic Forum AI Governance Alliance highlights various ways AI technologies are being leveraged to reduce electricity usage across different sectors.