Global electricity demand is set to outpace economic growth as part of a broader trend up to 2030, with electricity consumption projected to grow at least two-and-a-half times as fast as overall energy demand.
A fundamental shift in the longstanding relationship between electricity demand and economic activity is set to be a defining feature until 2030, says international organisation International Energy Agency (IEA) executive director Dr Fatih Birol.
Global electricity demand grew by about 3% in 2025, compared to the levels of 2024, adding about 800 TWh. This increase was about two-and-a-half times faster than the growth in total energy demand.
Yearly electricity demand growth over the next five years is set to be 50% higher on average, compared with the average across the previous decade.
Despite the destabilising effect of the US-Iran war, capital flows to the energy sector are expected to grow to $3.4-trillion in 2026, which is a 5% rise from 2025, the IEA ‘World Energy Investment 2026’ report shows.
