The Facts

• The International Energy Agency (IEA) has reported that global demand for electricity is expected to increase by 4% in 2024, the fastest pace since 2007. Warmer temperatures, economic growth, and artificial intelligence (AI) were cited as key drivers.The International Energy Agency (IEA) has reported that global demand for electricity is expected to increase by 4% in 2024, the third-fastest pace since 2007, due to economic growth and the increasing use of artificial intelligence (AI) and air conditioning.

• Electricity consumption in China and India is expected to increase by 6.5% and 8% respectively. The expansion of electric vehicles in China, as well as heatwaves and GDP growth in India, were factors behind the increases.This comes as electricity consumption in China and India is expected to increase by 6.5% and 8%, respectively, while demand in the US and Europe is set to rebound and rise up to 3% this year.

• Demand growth in 2023 amounted to 2.5%. Besides rising temperatures increasing demand for climate control, the growth of data centers and the deployment of AI systems is expected to be a factor, although a lack of reliable data makes the full impact difficult to predict.According to the Electricity Mid-Year Update report, worldwide electricity demand grew 2.5% last year and is forecast to increase by another 4% in 2025.