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Electricity 2026
Background information Global demand for electricity continues to rise rapidly as the world enters the Age of Electricity, driven by the increasing electrification of transport, heating and factories, as well as by growing power consumption from cooling and data centres.Against this backdrop, Electricity 2026 – the IEA’s annual report on global electricity systems and markets – provides in-depth analysis of recent trends and policy developments. It includes forecasts for electricity demand, supply and carbon dioxide (CO2) emissions for select countries, by region and worldwide.As electricity use grows, power systems will need greater flexibility to securely and cost‑effectively integrate…
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Electricity 2026: Can the electricity sector ‘move fast and connect things?’
Background information Electricity 2026 – the IEA’s annual report on global electricity systems and markets – provides in-depth analysis of the recent trends and policy developments underpinning the Age of Electricity. It includes forecasts through 2030 for electricity demand, supply and carbon dioxide (CO2) emissions for select countries, by region and worldwide.As electricity use grows, power systems will need greater flexibility to securely and cost-effectively integrate an increasingly diverse mix of electricity generation sources and evolving demand patterns and technologies. A lack of grid capacity is also becoming a major bottleneck for electricity systems in many regions, leading…
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Global electricity demand is set to grow strongly to 2030, underscoring need for investments in grids and flexibility
…this decade, with electricity generation from renewables, natural gas and nuclear all expanding to keep pace, according to a new IEA report.Electricity 2026, out today, 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 carbon dioxide (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…
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Copper prices have hit record highs, but smelters face mounting strategic pressures
copper Copper markets enter uncharted territory as structural and short-term pressures converge Copper prices have surged to record highs this year, briefly exceeding USD 14 500 per tonne (intraday) in January 2026, having only passed USD 12 000 per tonne for the first time in December 2025. The unprecedented price levels have been driven by some important short-term developments, including supply disruptions at several major mines and a build-up of US copper inventories due to tariff uncertainty. But they have also been underpinned by some underlying factors, such as challenges in developing new copper mines and the…
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Delivering on the EU’s electrification ambitions
…an Industrial Development Bank to mobilise EUR 100 billion, of which a first EUR 1 billion auction has started. As low- and medium-temperature heat accounts for only around one-third of the EU’s total industrial energy demand, policy support is also emerging for the electrification of higher-temperature processes: 9 of the 15 projects which won funding in the first round of Germany’s Carbon Contracts for Difference Auction aim to use electricity to supply heat at temperatures above 150⁰C.In buildings, reaching the economy-wide target would see the electrification rate increase to 43%, up from 37...
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7 certainties about energy for this age of uncertainty
…world has entered the age of electricity Oil and gas will still be widely used for many years to come, but the use of electricity is growing twice as a fast as overall energy demand. It’s the key energy input to the most dynamic parts of the global economy – such as AI, data centres and high-tech manufacturing – and is increasing its share of major sectors like road transport and heating through technologies such as EVs and heat pumps. Already today, more than half of the investment going into the global energy sector each year is going to electricity…
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How accelerating electrification could strengthen energy security in Southeast Asia
…rapidly in Southeast Asia, driven by economic growth, industrialisation, urbanisation and rising incomes. Since 2015, energy demand has risen by around 40%, while electricity demand has grown even faster – twice as fast as overall energy use. Although renewables have increased significantly over the past decade, fossil fuels have continued to dominate, meeting over 70% of energy demand growth across this period, with oil accounting for nearly half of total energy consumption.Rapid energy demand growth and continued dependence on fossil fuels brings greater exposure to energy security risks. The region is increasingly reliant on imported fuels, deepening its exposure to…
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The next wave of LED lighting: Smarter, circular and more efficient
…taking shape As the world enters the Age of Electricity, lighting remains one of the most visible – and widespread – parts of our energy use.The IEA estimates that lighting in buildings and outdoor applications accounts for the majority of overall lighting electricity demand. In 2024, around 8% of global electricity demand – or about 2 200 terawatt hours (TWh) – was attributed to lighting in buildings and outdoor applications, excluding industry and agriculture. These figures reflect the latest available data and define the scope of the analysis presented in this commentary. Estimates from industry and experts place global electricity consumption for lighting…
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The energy crisis creates even stronger impetus for EU electrification
…for electrification in the EU, identifying cost competitiveness and areas where targeted policies could catalyse change. Fuel price ratios determine electrification competitiveness To make electrification cost-competitive, electricity prices need to fall below a threshold ratio relative to the price of fossil fuels. Because most electrification options are several times more efficient than conventional alternatives, they can be cheaper to operate than conventional fuel-based technologies even when electricity costs more per unit of energy than the fuel they replace – i.e. a ratio greater than one. EU countries today face very different price ratios. These differences are driven by…
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Battery storage is scaling up and taking on a larger system role
…latest data, the deployment of batteries expanded strongly in 2025 and broadened across markets – with rapid growth in countries such as Australia and Saudi Arabia, where storage is increasingly being used to support the integration of rising shares of variable renewables.In regions that have been at the forefront of renewable integration and battery deployment, batteries now play an essential role in continuously balancing electricity demand and supply. Comparatively short construction and development timelines are further supporting the rapid deployment of utility-scale batteries in particular: in many markets, projects typically take around two years to develop and commission, giving…