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Electricity 2026
Global power demand growth continues to rise rapidly as the Age of Electricity gathers pace, supported by the increasing electrification of industry, transportation, and the buildings sectors. Growing consumption is also coming from some of the most dynamic segments of global economies, such as artificial intelligence (AI), data centres, and evolving technological innovations.Against this backdrop, 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 this new era. It includes forecasts for electricity demand, supply and carbon dioxide (CO2) emissions for select countries, by…
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Electricity 2026 Executive summary
…of 3.6% over the 2026-2030 forecast period, supported by rising consumption from industry, electric vehicles, air conditioning and data centres. Worldwide electricity demand grew by 3% year-on-year in 2025. This followed growth of 4.4% in 2024, when intense heat waves and strong industrial activity in many regions boosted electricity use. Looking ahead, annual demand growth over the next five years is set to be 50% higher on average compared with the average across the previous decade. For the first time in three decades, excluding periods of crisis‑related disruption, global electricity demand outpaced economic growth in…
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Electricity 2026 Demand
…Advanced economies saw overall electricity demand relatively static in 2015-2020 and their share of global growth rising only to 10% in 2020-2025. The shift to growth became apparent in 2025, when advanced economies accounted for almost 20% of additional global demand, up from 17% in 2024. We expect this share to remain close to 20% through 2030, as electricity demand continues to grow due to a combination of increasing consumption from data centres, electric vehicles, air conditioners and heat pumps, among many other sectors. Over the 2026-2030 outlook period, we expect electricity demand growth to gather pace…
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Electricity 2026 Supply
Renewables and nuclear keep growing and setting records Global electricity generation will reach multiple new milestones in our 2026-2030 forecast period. This is particularly the case for low-emissions generation sources – renewables and nuclear – which will continue expanding and setting new records. Renewable energy is now outpacing coal, with nuclear generation simultaneously reaching historic highs. Constrained by growth in low-emissions sources, coal-fired generation globally is forecast to record slight declines, where demand growth through 2030 will be met by renewables, natural gas and nuclear. While trends for individual fuels vary by region, a common theme is the…
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Electricity 2026 Emissions
…CO2-intensity from electricity generation contracted by an estimated 3% in 2025, after a 2.6% reduction in in 2024. An increasing share of renewables and robust output in nuclear energy generation are driving this trend. We forecast CO2 intensity to fall even faster over our forecast period, at an annual average rate of 3.7%, down from 435 g CO2/kWh in 2025 to 360 g CO2/kWh in 2030.Many regions are expected to register substantial declines in CO2 intensity in the 2026-2030 outlook. The European Union is forecast to post the sharpest fall in emissions intensity from electricity generati.…
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Electricity 2026 Prices
…which rose by 15% y‑o‑y, averaging around EUR 75/t CO2 in 2025. Average EU wholesale electricity price remained the highest among the markets analysed in 2025 – roughly twice that of the United States and India, and markedly above levels in Australia (+65%) and Japan (+25%). Cold snaps in January 2026 boosted heating and electricity demand, contributing to higher natural gas spot and forward prices. Higher gas prices, in turn, put upward pressure on power futures. EU futures prices as of 26 January 2026 averaged around USD 95/MWh for 2026, broadly in line with 2025 levels, before easing to roughly USD 85/MWh in…
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Hydroelectricity
…currently the third largest source of power generation worldwide after coal and natural gas. In 2024, it generated around 4 500 terawatt-hours of electricity, or 14% of the global total.
More than 150 gigawatts (GW) of new hydro capacity is set to come online by the end of the decade, mostly in emerging and developing economies. As a result, electricity generation from hydropower is expected to increase by 7% between 2025 and 2030. However, its share in global electricity generation is poised to decrease slightly by 2030 as other energy sources, including solar PV and wind, see faster growth…
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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…