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Global electricity demand is expected to continue to grow faster in 2026 and 2027, with renewables expected to take over as the world’s largest source of electricity generation in 2026, the International Energy Agency said in its Electricity Mid-Year Update.
- Global electricity demand is expected to grow by 3.6 per cent in 2026 and 3.8 per cent in 2027, up from 3 per cent in 2025, the IEA said.
- The main growth drivers are expected to be industrial expansion, more appliances, greater use of air conditioning and heat pumps, electric vehicles and data centres.
- The IEA said the Middle East energy shock had raised electricity generation costs and increased volatility but had not stopped global demand growth.
- Demand growth is expected to be dominated by China at 5.5 per cent in 2026, with India at 7 per cent, and the US and European Union at close to 2 per cent each.
- Disruptions to LNG supply due to the US-Israeli war on Iran are weighing on electricity consumption in more price-sensitive LNG-importing markets in Asia, including Pakistan and Bangladesh.
- A stronger-than-expected El Nino event in 2026 could boost electricity demand further by raising cooling needs.
- Coal-fired power generation is forecast to increase by 1.4 per cent in 2026 after being flat in 2025, due to higher gas prices encouraging switching, weather effects and renewable curtailment.
- Renewables are expected to overtake coal as the largest global source of electricity production after reaching near parity in 2025.
- Solar and wind power supply are expected to grow from 17 per cent in 2025 to 21 per cent in 2027.
- Solar power supply is expected to lead the growth in renewables, overtaking wind power in 2026 to become the second largest source of renewable energy generation behind hydropower.
Published on July 23, 2026
English (US) ·