Report reveals India’s electricity demand expected to increase by 8% this year
According to the report, the increased electricity demand globally will persist and remain at four percent growth by 2025.
A report on the outlook for global electricity by the International Energy Agency has revealed that India’s Electricity Demand is expected to increase at its steepest rate this year owing to a number of factors, including strong economic performance, heat waves, and increasing use of electricity-consuming technologies like electric cars and heating appliances, among others. In India alone, the electricity demand is projected to rise by a heady eight percent in the current year. On the other hand, sources of renewable energy are growing fast and solar PV systems are highly expected to reach new record highs.
According to the IEA’s Electricity Mid-Year Update, it is estimated that global electricity demand will rise by about four percent in the year 2024, up from a 2.5 percent rise in 2023. In other words, it would be the fastest growth rate of FDI since 2007, although the two following years, 2008 and 2009 show abnormally high rates due to the global financial crisis and the COVID-19 pandemic, respectively.
According to the report, the increased electricity demand globally will persist and remain at four percent growth by 2025. With the rapid increase in the generation of electricity from renewable sources of energy, it is anticipated that this value will grow fast this year and in the next year, with the contribution of renewable sources to global electricity generation rising from 30 percent in 2023 to 35 percent in 2025.
This year, it is expected that, for the first time ever, electricity generated from renewable energy sources will exceed that produced from coal sources across the world. Electricity generated from solar PVs alone is projected to contribute nearly half of the incremental demand for electricity activity over 2024 and 2025; solar and wind sources are also expected to contribute nearly three-quarters of this incremental demand.
Despite the rapid rise in renewable energy, global coal power generation is expected to remain steady this year due to high demand, particularly in China and India, according to the report. Consequently, carbon dioxide (CO2) emissions from the global power sector are leveling off, with a slight increase in 2024 projected to be followed by a decrease in 2025.
However, significant uncertainties persist. Chinese hydropower production rebounded strongly in the first half of 2024 from its low point in 2023. If this upward trend continues into the second half of the year, it could reduce coal-fired power generation and lead to a slight decline in global power sector emissions in 2024.
Many leading world economies are experiencing steep growth in the use of electricity. In India, demand is expected to rise by eight percent this year because of tremendous economic activity and heatwaves. Likewise, China’s electricity demand is forecastforecast to grow by over six percent due to the healthy performances in the services segment and other sectors, such as the cleanthe clean energy technology industryindustry.
Following a decline in 2023 due to mild weather, U.S. electricity demand is expected to rebound by three percent this year, driven by steady economic growth, increased cooling needs, and a growing data center industry. In contrast, the European Union is projected to experience a more modest recovery, with demand growth estimated at 1.7 percent, recovering slowly after two years of decline caused by the energy crisis.
In various regions worldwide, the growing use of air conditioning will continue to be a major factor driving electricity demand. The report highlights that intense heat waves in the first half of 2024 have increased demand and stressed electricity systems.
Keisuke Sadamori, IEA Director of Energy Markets and Security,Security, said, “The growth in global electricity demand this year and next is set to be among the fastest in the past two decades, highlighting the growing role of electricity in our economies as well as the impacts of severe heat waves.”
Further adding, “It’s encouraging to see clean energy’s share of the electricity mix continuing to rise, but this needs to happen at a much faster rate to meet international energy and climate goals. At the same time, it’s crucial to expand and reinforce grids to provide citizens with a secure and reliable electricity supply and to implement higher energy efficiency standards to reduce the impacts of increased cooling demand on power systems.”
With the continual advancement of artificial intelligence (AI), the energy consumption of data centers is receiving increased attention, highlighting the expansion of their required data and monitoring systems. The report identifies quite a number of factors of uncertainty in data center electricity demand, such as the speed of AI, the current and increasing diverse uses of AI, and the possibilities of improving energy productivity. More comprehensive statistics of electricity consumption from the data center industry will be vital for evaluating historical trends and projecting future trends.
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