WASHINGTON (dpa-AFX) - Global power demand is set to grow by more than 3.5 percent per year on average over the rest of this decade, with electricity generation from renewables, natural gas and nuclear all expanding to keep pace, according to a new report by the International Energy Agency.
'Electricity 2026' is the IEA's annual report on global electricity systems and markets. It provides in-depth analysis of recent trends and policy developments, and includes forecasts for electricity demand, supply and CO2 emissions over the five-year period through 2030.
According to the report, electricity demand is on course to grow at least 2.5 times as fast as overall energy demand through 2030 as the Age of Electricity takes hold. This is driven by rising industrial use of electricity, the continued uptake of electric vehicles, higher air conditioning use and the expansion of data centres and Artificial Intelligence. While emerging and developing economies remain the main engines of electricity demand growth, consumption from advanced economies is also rising after 15 years of stagnation - contributing to a fifth of the total increase in power demand through 2030.
The report finds that global electricity generation from renewables - boosted by record deployment of solar PV - is now in the process of overtaking generation from coal, based on the latest available data. Nuclear power output also rose to a new record. The momentum behind low-emissions sources of generation continues to 2030, by which time renewables and nuclear are together set to generate 50 percent of global electricity, up from the current 42 percent.
Natural gas-fired output is also set to grow through 2030, supported by rising electricity demand in the United States and the continuing shift from oil to gas for power in the Middle East. Coal-fired generation loses ground globally as renewables expand, returning to 2021 levels by the end of the decade. As a result, global CO2 emissions from electricity generation are expected to remain roughly flat between now and 2030, the report says.
The report emphasizes that these trends - growing demand, an increasingly weather-dependent mix of power generation sources, and evolving electricity consumption patterns and technologies - require a rapid and efficient expansion of both electricity grids and system flexibility. Today, more than 2 500 gigawatts worth of projects - encompassing renewables, storage, and projects with large loads, such as data centers - are currently stalled in connection queues worldwide, according to the report.
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