Electricity demand is on the rise worldwide, prompting a continuing increase in generating capacity output from traditional as well as renewable energy sources.

According to a recent report from the International Energy Agency (IEA), global power demand is set to grow by more than 3.5% per year on average through 2030, outpacing overall energy demand and far quicker than grid expansion in many regions. The growth is being driven by electric vehicles, data centers and artificial intelligence, and rising industrial electricity use.

Power demand is expected to grow at least 2.5 times faster than total energy demand over the next five years, with both emerging and advanced economies contributing to the surge. After 15 years of flat electricity consumption, developed nations have resumed a growth track and are predicted to account for about one-fifth of the total increase in global power demand through 2030.

Global electricity generation from renewables, boosted by record deployment of solar photovoltaics, is currently poised to overtake generation from coal, after virtually drawing level with it in 2025 based on the latest available data. Nuclear power output also rose to a new record. The momentum behind low-emissions sources of generation continues to 2030, by which time renewables and nuclear are together set to generate 50% of global electricity, up from 42% currently.

Natural gas-fired output is also set to grow through 2030, supported by rising electricity demand in the U.S. and the continuing shift from oil to gas for power in the Middle East. Coal‑fired generation loses ground globally as renewables expand, returning to 2021 levels by the end of the decade. As a result, global carbon dioxide emissions from electricity generation are expected to remain roughly flat between now and 2030.