IEA See 2% Growth in Global Electricity Demand

IEA See 2% Growth in Global Electricity Demand

The International Energy Agency (IEA) expects global demand for electricity to increase by just fewer than two per cent in 2023. IEA made this known in its latest electricity market report on Wednesday.

The reasons are the continuing economic slowdown and effects of the energy crisis in many industrialised countries, the Paris-based organisation said as it updated the findings of its February report.

In the United States, Japan and Europe, electricity demand was expected to fall in 2023. Electricity consumption in the EU is expected to drop to levels last seen in 2002. Energy-intensive industries in the EU had not yet recovered from 2022 production slump, the agency said.

However, with an improved outlook for the global economy, demand for electricity was expected to rise again in 2024 by 3.3 per cent. According to the IEA report, the increase in electricity demand is being driven by electrification in an effort to reduce climate-damaging emissions.

In addition, more air conditioning systems were being used due to rising temperatures, which were driving up electricity consumption. This came on top of robust growth in demand in emerging and developing countries.

In spite of the growing demand in many regions, the strong global use of renewables meant for were on track to meet all the additional growth. The growth in the global electricity demand over the next two years, the IEA analysis found.

By 2024, renewables would account for more than a third of global electricity generation, according to the agency. Depending on the weather, 2024 could be the first year in which more electricity would be generated globally from renewables than from coal. Nigeria’s Inflation Rate Jumps to 22.79%