QAZAQ GREEN.  Global electricity demand will grow strongly through 2030, reinforcing the need for accelerated investment in power grids and system flexibility, according to a new report by the International Energy Agency (IEA).

The IEA’s annual report Electricity 2026, published on 6 February, forecasts average global electricity demand growth of more than 3.5% per year for the rest of the decade. Electricity consumption is expected to expand at least 2.5 times faster than overall energy demand, driven by industrial electrification, the rapid uptake of electric vehicles, increased use of air conditioning, and the expansion of data centres and artificial intelligence.

While emerging and developing economies remain the main drivers of demand growth, electricity consumption in advanced economies is also rising after 15 years of stagnation. These countries are expected to account for around one-fifth of the total increase in global power demand by 2030.

According to the report, global electricity generation from renewables, supported by record solar PV deployment, is in the process of overtaking coal generation after reaching near parity in 2025. Nuclear power output has also reached a new record. By 2030, renewables and nuclear together are projected to account for 50% of global electricity generation, up from 42% today.

Electricity generation from natural gas is also set to increase, supported by rising demand in the United States and a continued shift from oil to gas in the Middle East. Coal-fired generation is expected to decline globally, returning to 2021 levels by the end of the decade. As a result, global CO₂ emissions from electricity generation are projected to remain broadly flat through 2030.

The report stresses that rising demand, a growing share of weather-dependent generation, and changing consumption patterns require a rapid expansion of electricity grids and greater system flexibility. More than 2 500 gigawatts of projects worldwide — including renewables, storage and large-load facilities such as data centres — are currently stalled in grid connection queues.

The IEA estimates that grid-enhancing technologies and regulatory reforms could enable the integration of up to 1 600 gigawatts of these projects in the near term, significantly improving grid utilisation.

“At a moment of significant uncertainty across energy markets, one certainty is that global electricity demand is growing much more strongly than it did over the past decade,” said Keisuke Sadamori, IEA Director of Energy Markets and Security. “Meeting this demand will require annual investment in grids to rise by 50% by 2030, alongside a strong focus on flexibility, security and resilience.”

The report also notes rapid growth in utility-scale battery storage, particularly in markets such as California, Germany, Texas, South Australia and the United Kingdom, providing critical short-term flexibility.

At the same time, electricity affordability remains a growing concern. Household power prices in many countries have increased faster than incomes since 2019, putting pressure on consumers and businesses. The IEA concludes that strengthening the security and resilience of power systems — amid ageing infrastructure, extreme weather and cyber risks — is becoming an urgent priority worldwide.