PARIS (Azat TV) – Global electricity demand is projected to surge by more than 3.5 percent annually through 2030, according to the International Energy Agency’s (IEA) latest report, ‘Electricity 2026,’ published on February 9, 2026. This significant increase, driven by rapid electrification across various sectors, places immense pressure on existing power grids and underscores an urgent need for substantial investment in infrastructure and system flexibility to avert critical bottlenecks in the ongoing energy transition.
The IEA report highlights that this anticipated growth in electricity consumption is set to outpace overall energy demand as industries, transport, and buildings increasingly electrify. Key drivers behind this surge include rising industrial electricity use, the continued global adoption of electric vehicles, growing demand for air conditioning, and the rapid expansion of data centers alongside artificial intelligence technologies. While emerging and developing economies will remain the primary contributors to this demand growth, advanced economies are also expected to see renewed increases, accounting for approximately one-fifth of the total global demand growth by 2030.
IEA Details Demand Surge and Supply Shifts
On the supply side, the ‘Electricity 2026’ report indicates a significant shift towards low-emission sources. Electricity generation from renewables is on track to surpass coal, buoyed by record deployment of solar photovoltaic capacity. Nuclear power generation has also reached new record levels. Collectively, renewables and nuclear power are projected to account for 50 percent of global electricity generation by the end of the decade, a notable increase from the current 42 percent. This expansion is crucial for decarbonization efforts.
Despite the rise of renewables, natural gas-fired power generation is also expected to grow, particularly supported by increased demand in the United States and a continued transition from oil to gas in parts of the Middle East. Conversely, coal-fired generation is forecast to decline globally, reverting to 2021 levels by 2030. As a result of these shifts, global carbon dioxide emissions from electricity generation are anticipated to remain broadly flat over the forecast period, reflecting a complex energy mix during the transition.
Grids Face Critical Bottlenecks and Investment Gaps
The IEA issues a stark warning regarding the increasing pressure on electricity infrastructure. The combination of surging demand, a more weather-dependent generation mix (due to renewables), and evolving consumption patterns necessitates a rapid expansion of power grids and greater system flexibility. The report reveals a significant challenge: more than 2,500 gigawatts of projects, including renewable energy installations, energy storage solutions, and large electricity consumers like data centers, are currently stalled in grid connection queues worldwide. This represents a substantial impediment to achieving clean energy targets and meeting future demand.
Keisuke Sadamori, IEA Director of Energy Markets and Security, emphasized the financial imperative, stating that annual investment in power grids will need to increase by approximately 50 percent by 2030 to meet the rising demand. He added that flexibility, security, and resilience are becoming increasingly vital as electricity systems evolve globally. The report identifies existing grids’ inefficient use as a major issue, suggesting that deploying grid-enhancing technologies and implementing regulatory reforms could enable up to 1,600 gigawatts of these stalled projects to be connected in the near term, thereby unlocking significant new capacity without building entirely new lines.
Enhancing Flexibility and Addressing System Vulnerabilities
Utility-scale battery storage is highlighted as a rapidly growing source of short-term flexibility, with markets such as California, Germany, Texas, South Australia, and the United Kingdom experiencing robust growth. These storage solutions are vital for balancing intermittent renewable energy sources and ensuring grid stability. However, the report also flags rising electricity prices as a key concern for households and businesses, prompting policymakers to focus on market design and regulatory reforms to improve efficiency across the entire power system.
Finally, the IEA stresses the critical need to bolster the security and resilience of electricity systems. This includes addressing risks associated with aging infrastructure, the increasing frequency and intensity of extreme weather events, and growing cyber threats. Modernizing system operations and implementing robust protection measures for critical infrastructure are deemed essential to maintaining a reliable power supply in the coming years. The findings underscore that while the push for electrification and renewables is strong, the foundational infrastructure must keep pace to ensure a smooth and secure energy transition.
The IEA’s ‘Electricity 2026’ report makes it clear that the global energy transition, while progressing on generation, is now critically dependent on overcoming the systemic challenge of modernizing and expanding electricity grids. Without significant, coordinated investment and regulatory action, the benefits of increased renewable and nuclear capacity could be severely constrained, potentially stalling decarbonization efforts and impacting economic growth.