India's electricity demand predicted to surge by 8%: IEA report
India's electricity demand is projected to increase by a significant 8% this year, as per a recent report by the International Energy Agency (IEA). This surge is attributed to strong economic growth, severe heat waves, and the rising adoption of electrically-powered technologies such as Electric Vehicles (EVs) and heat pumps. The report also highlights that global electricity demand is escalating at its fastest pace in years.
Global electricity demand to grow by 4% in 2024
The IEA's Electricity Mid-Year Update predicts that the global electricity demand will grow by approximately 4% in 2024, a significant increase from the 2.5% growth rate in 2023. This is expected to be the highest annual growth rate since 2007, excluding exceptional rebounds following the global financial crisis and COVID-19 pandemic. The report anticipates this strong increase in global electricity consumption to persist into 2025 with a similar growth rate of around 4%.
Renewable energy sources to expand rapidly: IEA report
Renewable sources of electricity are projected to expand rapidly in 2024 and 2025, according to the IEA report. The share of renewable energy in the global electricity supply is forecasted to rise from 30% in 2023 to 35% in 2025. Solar Photovoltaic (PV) alone is expected to meet roughly half of the growth in global electricity demand over these two years. Furthermore, solar and wind energy combined are predicted to fulfill as much as three-quarters of this growth.
Global power generation from coal unlikely to decline: IEA report
Despite the rapid expansion of renewable energy sources, global power generation from coal is not expected to decrease this year due to strong demand, particularly in China and India. Consequently, carbon dioxide (CO2) emissions from the global power sector are predicted to plateau, with a slight increase in 2024 followed by a decline in 2025. However, if Chinese hydropower production continues its upward trend as seen in the first half of 2024, it could potentially reduce coal-fired power generation.
Significant electricity demand growth expected in China
China is also expected to experience a significant increase in electricity demand, with growth projected at more than 6%, according to the IEA report. This surge is driven by robust activity in the services industries and various industrial sectors, including the manufacturing of clean energy technologies. After a decline in 2023 due to mild weather, electricity demand in the US is forecasted to rebound this year by 3%, rising demand for cooling and an expanding data center sector.
Modest recovery in EU's electricity demand: IEA report
In contrast to the US and China, the European Union is expected to see a more modest recovery in electricity demand, with growth forecasted at 1.7%, following two consecutive years of contraction due to the impacts of the energy crisis. "Growth in global electricity demand this year and next is set to be among the fastest in the past two decades," said Keisuke Sadamori, IEA Director of Energy Markets and Security.
