The increase in electricity consumption through 2027 is expected to average around 4% annually, says the International Energy Agency (IEA).

This is the fastest pace of growth in recent years. The growth in global demand will be the equivalent of adding an amount greater than Japan’s annual electricity consumption every year between now and 2027.

Data centres and electric vehicles contribute significantly to this surge. However, much of the additional demand over the next three years will come from emerging and developing economies, which account for 85% of the demand growth. China is a clear example of increased consumption.

“The acceleration of global electricity demand highlights the significant changes taking place in energy systems around the world and the approach of a new Age of Electricity. But it also presents evolving challenges for governments in ensuring secure, affordable and sustainable electricity supply,” said IEA Director of Energy Markets and Security, Keisuke Sadamori.

“While emerging and developing economies are set to drive the large majority of the growth in global electricity demand in the coming years, consumption is also expected to increase in many advanced economies after a period of relative stagnation. Policy makers need to pay close attention to these shifting dynamics.”

In its report, the IEA forecasts that growth in low-emissions sources – primarily renewables and nuclear – is sufficient, in aggregate, to cover all the growth in global electricity demand over the next three years. As a result of these forecast trends, carbon dioxide emissions from global electricity generation are expected to plateau in the coming years after increasing by about 1% in 2024.