Global Electricity Demand Set To Grow 3.6 Percent Annually As Solar Drives Energy Transition—IEA Report

The global energy system is entering what the International Energy Agency describes as the “Age of Electricity,” marked by a sharp rise in power demand and a major shift in how energy is produced and consumed. According to the latest analysis, global electricity demand is expected to grow at an average annual rate of 3.6% between 2026 and 2030. This growth rate is around 50% higher than the average seen over the past decade, showing how quickly the world’s power needs are increasing.

One of the most important changes highlighted in the report is that electricity demand is no longer closely linked to overall economic growth in the same way as before. For the first time in thirty years, electricity demand is set to grow faster than the global economy as a long-term trend. By 2030, electricity demand is projected to rise at least 2.5 times faster than total energy demand. This confirms that electricity is becoming the backbone of modern economies.

Several key factors are driving this surge. The rapid electrification of transport, including electric vehicles, and the growing use of electric heating systems are increasing power consumption. Energy-intensive industries are also expanding. In addition, the fast-growing digital economy, especially data centers and artificial intelligence, is adding significant new electricity demand. Together, these trends are reshaping global power systems.

Solar photovoltaic (PV) technology is playing a central role in meeting this rising demand. Solar power is currently the fastest-growing source of electricity generation worldwide. In 2025, solar generation reached record levels. The report projects that solar PV will contribute the largest share of new renewable energy capacity additions through the end of the decade. Solar is expected to add more than 600 terawatt-hours (TWh) of electricity annually and nearly double its share of the global power mix to 15% by 2030.

China remains the biggest driver of both electricity demand and renewable energy growth. Over the next five years, China is expected to add new electricity demand equal to the entire current consumption of the European Union. The country’s rapid solar expansion is helping to limit the growth of coal-fired power generation. In the United States and Europe as well, solar is leading a revival in domestic energy production. In 2025 alone, solar output in the United States grew by 26%.

However, the rapid expansion of solar and other variable renewable sources brings new challenges. Power grids are under pressure, and many projects are facing delays. Globally, more than 2,500 gigawatts of power projects, mostly solar and storage, are waiting in grid connection queues. The report stresses the urgent need for major investment in grid infrastructure and system flexibility. Utility-scale battery storage is seen as essential to store excess solar power generated during the day and supply it during the evening and night.

Even with strong renewable growth, coal is expected to remain the largest single source of electricity worldwide in 2030, although its share will continue to decline. Natural gas will also remain important, especially for providing flexibility and balancing supply when solar and wind output varies.

Overall, the report concludes that the global power mix is steadily becoming cleaner. By 2030, renewables and nuclear energy are expected to supply half of the world’s electricity. As solar PV continues its rapid growth, policymakers must now focus on strengthening grids and improving flexibility to support an increasingly electrified world.