Rising Global Electricity Demand Expected to Soar in 2024
The world is set to experience a surge in electricity demand this year, with a projected growth of around 4 percent, a significant jump from the 2.5 percent seen in 2023. This increase is being primarily driven by robust economic growth and the widespread adoption of electricity-powered technologies such as electric vehicles and heat pumps, according to a recent analysis.
Intense Heatwaves and Electric-Powered Technologies Fueling Demand
The International Energy Agency’s latest report highlighted how intense heatwaves and the growing use of electricity-powered technologies are contributing to the spike in global electricity demand. The first half of 2024 saw many regions grappling with severe heatwaves, leading to heightened electricity needs and strained power grids. May, in particular, stood out as the hottest month of the year, marking the 12th consecutive month of record-high temperatures.
Impact on Countries Around the Globe
Countries like India, Mexico, Pakistan, the US, and Vietnam experienced severe heatwaves in the first half of the year, resulting in surging peak loads due to increased cooling needs. This trend is expected to continue, with global electricity demand growing at one of the fastest rates in the past two decades, underscoring the increasing role of electricity in economies worldwide.
Renewables on the Rise
The IEA emphasized the importance of adopting higher efficiency standards for air conditioning to mitigate the impact of increased cooling demand on power systems. The report also highlighted the necessity of expanding and reinforcing power grids to ensure a reliable electricity supply. Additionally, renewables, particularly solar photovoltaic, are rapidly advancing globally, with solar energy poised to achieve new records.
Driving Growth: India and China Take the Lead
The surge in electricity demand growth is expected to be led by countries like India, China, and the US. China is forecasted to see a 6.5 percent increase in electricity demand in 2024, while India is set to witness an 8 percent rise. The US, on the other hand, is expected to experience a significant rebound in electricity consumption, driven by economic growth and the increasing need for air conditioning.
Clean Energy Sources and Future Projections
Despite the rise in power consumption, solar PV is projected to meet half of the growth in global electricity demand by 2025. The IEA also anticipates that global electricity generation from solar PV and wind will surpass that from hydropower in 2024. The energy transition towards renewables is on track, with the share of renewables in global electricity supply expected to reach 35 percent by 2025.
Urgent Call for Carbon Emission Reduction
IEA’s executive director emphasized the need for urgent action to reduce carbon emissions in the energy industry to avoid catastrophic climate change. While the growth in renewables is encouraging, more rapid progress is necessary to meet international energy and climate goals. Expanding and reinforcing grids, along with implementing higher energy efficiency standards, are crucial steps to ensure a secure and reliable electricity supply.
Nuclear Generation and AI Impact
The report also highlighted that global nuclear generation is on track to reach new highs in 2025, driven by various factors including the restart of reactors in Japan and the arrival of new reactors in key markets. Additionally, the rise of artificial intelligence has brought attention to the electricity consumption of data centers, emphasizing the need for better data collection and understanding of future trends.