IEA Says Renewables And Nuclear Will Hit 50% Of Global Power Mix By 2030 As Electricity Demand Surges In The New “Age of Electricity”

A new report from the International Energy Agency (IEA) forecasts major changes in the global electricity landscape by the end of this decade. According to the latest edition of Electricity 2026, the share of renewables and nuclear in the world’s power mix is expected to reach 50% by 2030, while natural gas generation will also continue to grow. The report provides an in-depth assessment of global electricity markets and includes projections for demand, supply, and CO₂ emissions through 2030.

The IEA expects global electricity demand to increase by more than 3.5% annually on average over the remainder of the decade. This growth will be significantly faster than overall energy demand, which the report says marks the rise of the “Age of Electricity.” Several factors are driving this shift: industries are increasingly electrifying their processes, electric vehicle adoption is accelerating, air conditioning demand is rising with warmer temperatures, and the rapid expansion of data centres and artificial intelligence is consuming more electricity than ever before. While emerging and developing economies will remain the primary drivers of this demand growth, advanced economies are also seeing their electricity consumption rise again after 15 years of little to no growth, accounting for about one-fifth of the total increase expected by 2030.

The report highlights that renewable energy is now on track to overtake coal as the world’s largest source of electricity. This transition was accelerated by record solar PV deployment in recent years, and renewables nearly matched coal generation in 2025. Nuclear power also reached a new global high. By 2030, renewables and nuclear combined are projected to supply half of the world’s electricity, up from 42% today, reflecting a strong and steady shift toward cleaner energy sources.

Natural gas-based generation is also set to expand through 2030, supported by rising power demand in the United States and a continued move away from oil-fired generation in the Middle East. Coal, meanwhile, is expected to decline globally as renewable energy increases its share, with coal generation returning to 2021 levels by the end of the decade. As a result, global CO₂ emissions from electricity generation are expected to remain roughly unchanged through 2030 despite growing demand.

The report also stresses that the evolving power system—marked by higher electricity consumption, increased dependence on weather-driven renewable generation, and new technologies—requires a rapid expansion of electricity grids and enhanced system flexibility. Currently, more than 2,500 gigawatts of projects, including renewables, energy storage facilities, and data centres, are stuck in grid connection queues worldwide. New analysis in the report shows that upgrading grid technology, modernising regulation, and allowing more flexible use of existing grid capacity could help integrate up to 1,600 gigawatts of these stalled projects in the near term, unlocking significant capacity without waiting for entirely new grid infrastructure.

IEA Director of Energy Markets and Security Keisuke Sadamori noted that global electricity demand is now growing far faster than in the past decade, and meeting this demand will require a substantial increase in investment. He stated that annual grid investment needs to rise by 50% by 2030. He also stressed the need for more flexibility and a strong focus on security and resilience as electricity systems evolve. The report shows that utility-scale battery storage installations have increased rapidly, offering an important source of short-term flexibility. Regions such as California, Germany, Texas, South Australia and the United Kingdom have all witnessed strong growth in battery deployment in recent years, helping stabilize grids and integrate more renewable energy.

Electricity 2026 also highlights that affordability remains a major concern. In many countries, household electricity prices have risen faster than incomes since 2019, putting pressure on consumers. Higher prices are also affecting businesses and industries. This has prompted policymakers to focus on measures that enhance flexibility, efficiency and reliability across all parts of the power system, while ensuring that new investments translate into more affordable electricity over the long term.

Finally, the report warns that improving the security and resilience of power systems is becoming increasingly urgent. Ageing infrastructure, cyberthreats, extreme weather events and new operational vulnerabilities pose growing risks to electricity networks worldwide. The IEA emphasizes that modernizing system operations, strengthening physical infrastructure and adopting advanced protection measures will be essential to ensuring reliable and secure electricity supply in the years ahead.