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Renewables for Industry
…with increasing deployment of renewable electricity supply, can deliver multiple benefits. In addition to reducing fossil fuel use and associated emissions, it can improve energy security by lowering exposure to volatile gas and oil prices and, when integrated with thermal storage, it can create demand flexibility that helps ensure a higher share of variable renewable generation.This report explores how to expand the role of renewables in the industrial energy mix through electrification of low-temperature heat and steam. It focuses on the European Union, China and the Association of Southeast Asian Nations (ASEAN), examining their techno-economic potential and…
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Electricity 2026
…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 region and worldwide. This year the forecast period has been expanded to five years, 2026-2030, compared with the previous three-year…
- Executive summary
- Demand
- Supply
- Grids
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+ 4 pages
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How accelerating electrification could strengthen energy security in Southeast Asia
…For example, around 30% of energy consumed in Brunei Darussalam and Viet Nam is electricity, up from less than 20% in the mid-2000s. Some segments of the economy are also seeing rapid growth in electrification: in 2025, EV sales in the region more than doubled year-over-year and accounted for nearly 20% of all car sales – higher than the sales share in a number of advanced economies.Even so, there remains significant potential to further expand electrification across Southeast Asia’s industry, transport and buildings sectors – supporting more secure, affordable and sustainable energy systems across the region. Several of…
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Policy and financing momentum sustain CCUS progress despite setbacks
…and investors to step in. This suggests that new CCUS policies are helping spread project risks across the public and private sectors, which in turn is allowing unprecedented levels of private capital to flow into projects. Ensuring this extends beyond a small number of projects, however, will require additional policy support to enable viable business models and target specific risks that need to be addressed for more projects to reach final investment decisions (FIDs). Supportive policies are unlocking private capital in select markets Regionally, Europe and the Middle East saw the strongest gains in 2025, with both capture and storage…
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Energy Technology Perspectives 2026 Deployment of clean energy technologies, materials and fuels
Outlook Many clean energy technologies are increasingly cost-competitive and growing strongly. Their aggregate market value has grown 20% on average per year since 2015 to reach nearly USD 1.2 trillion. Some 80% of global solar PV and wind generation now occurs at lower levelised costs than for coal or gas. Battery prices have dropped 75% since 2015, pushing electric car sales to around 25% share in 2025. Deployment increases in all IEA scenarios: in the Current Policies Scenario (CPS), their global market value nearly doubles to around USD 2 trillion in 2035, greater than the oil market in…
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Integrating Variable Renewable Energy in Kenya
Key challenges and strategic priorities Building on its renewable energy success, Kenya is now focused on managing a secure and reliable electricity system. With nearly 90% of the generation mix derived from renewable sources and electricity access rising from 37% in 2013 to 79% in 2025, the country has established itself as a regional leader in energy development.Integrating Variable Renewable Energy in Kenya explores how Kenya can strengthen its power system amid rising shares of variable renewable energy (VRE). The report identifies Kenya’s system to be operating in Phase 3 of the IEA’s VRE integration framework, where…
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Rare Earth Elements
Pathways to secure and diversified supply chains The critical role of rare earth elements in strategic applications, ranging from energy technologies and advanced electronics to aerospace and defence systems, combined with their highly concentrated supply chains, has elevated their importance in both energy and broader economic security discussions in recent years. This report assesses the current state of the rare earth elements market, examining demand and supply dynamics and key technological developments. It analyses the full value chain from mining to permanent magnet production, evaluates vulnerabilities across supply chains, and highlights the implications of potential supply disruptions. Based on these…
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Energy savings
…increased activity, such as home building and increased home sizes. In the transport sector, most efficiency improvements were realised in passenger vehicles – around one-sixth of the total. These energy savings were higher than the increased demand due to the rising number, frequency and distance of people travelling. Efficiency improvements in freight transport, such as trucks, drove around 1% of the total energy savings. This was lower than the rise in freight transport activity over the same period. Need more information? IEA (2025), Energy End-uses and Efficiency Indicators.IEA (2023), Decomposition of change in IEA total final energy use.
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China’s Official Energy Finance in Emerging and Developing Economies Trends in China’s Outbound Energy Finance
…adapting to changing circumstances rather than a withdrawal from overseas energy engagement. Policy banks have placed a greater emphasis on project selectivity, risk management and alignment with host-country plans, especially after the COVID pandemic. At the same time, China’s broader official sector has expanded its international role in line with industrial competitiveness, global supply-chain integration and the overseas growth of Chinese developers and equipment suppliers. As a result, outbound finance increasingly flows through a more diverse mix of institutions and instruments, particularly in markets where host-country demand for energy infrastructure remains strong.Even with the decline…
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Global Energy and Climate Model Techno-economic inputs
The Global Energy and Climate Model (GEC Model) uses macro drivers, techno-economic inputs and policies as input data to design and calculate the scenarios. The values for the different data categories and scenarios used in the GEC Model 2025 can be downloaded here.In particular more details regarding power generation technology costs for the Current Policies Scenario, the Stated Policies Scenario and the Net Zero Emissions by 2050 Scenario can be downloaded in excel format, including detailed projections at the 2050 horizon regarding overnight capital costs, annual O&M costs, efficiencies and other contributors to electricity costs at regional…
