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Economic Buzz: Global electricity demand to grow 3.6% in 2026, says IEA
23-Jul-2026 14:09
Global electricity demand is expected to increase by 3.6% in 2026, the International Energy Agency (IEA) said in its Electricity Mid-Year Update released on Thursday. For 2027, the agency projects that demand will grow further, by up to 3.8%.

Global electricity consumption is expected to reach 30,700 terawatt-hours (TWh) in 2027, up from 28,600 TWh in 2025. The IEA attributed its upward revisions to strong demand from industry, electric vehicles and data centres, as well as to cooling and appliances. It also warned that extreme weather conditions may affect electricity demand trends significantly, increasing outlook uncertainty.

Furthermore, the IEA noted that recent turmoil in global natural gas markets, driven by the war in the Middle East, has led to higher electricity generation costs in many regions, particularly in Asia and Europe.

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