Global electricity demand is projected to increase significantly this year and next, with solar photovoltaic (PV) energy expected to meet half of the rise, according to a recent report from Green Building Africa. Despite the growth of renewable energy sources, coal remains the primary source of electricity generation, as well as steel and cement production, leading to high levels of carbon dioxide emissions.
The report highlights that coal-fired power generation is unlikely to decrease this year due to surging demand, particularly in China and India. As a result, global power sector emissions are expected to plateau in the coming years, with a slight increase in 2024 followed by a decline in 2025. However, uncertainties remain, as Chinese hydropower production recovered in the first half of 2024, potentially impacting coal-fired generation.
Major economies like India and China are experiencing notable increases in electricity consumption, driven by economic growth and industrial activities. The United States is expected to see a 3% rise in electricity demand this year, driven by economic expansion and increased cooling needs. On the other hand, the European Union is anticipated to have a more modest recovery in demand following two years of contraction due to energy crisis impacts.
The report emphasizes that the growing use of air-conditioning in response to heatwaves is a significant driver of electricity demand in many regions. The Director of Energy Markets and Security at the IEA, Keisuke Sadamori, stressed the importance of accelerating the transition to clean energy in meeting climate goals and ensuring reliable electricity supply through grid expansion and energy efficiency improvements.
Moreover, the report underscores the increasing electricity demand of data centers due to artificial intelligence (AI) applications, calling for improved data collection and energy efficiency measures. To address these challenges, the IEA has launched the Energy for AI & AI for Energy initiative, aiming to engage with various stakeholders in exploring the opportunities and challenges at the intersection of energy and digitalization.
In conclusion, while global electricity demand is on the rise, the transition to clean energy and the efficient management of power systems are crucial for meeting sustainability goals and ensuring reliable electricity supply. The report highlights the need for more coordinated efforts to address the challenges posed by increasing electricity consumption in a rapidly evolving energy landscape.
