As heat waves and energy-intensive technologies push electricity demand to new highs, solar power is expected to fulfill much of the need. Photovoltaic panels will be able to meet about half of the projected demand increases for 2024 and 2025, according to the new Electricity Mid-Year Update from the International Energy Agency.

What You Need To Know

  • Photovoltaic panels will be able to meet about half of the projected  electricity demand increases for 2024 and 2025, according to the new Electricity Mid-Year Update from the International Energy Agency

  • Globally, electricity usage is expected to increase 4% this year and in 2025

  • Electricity demand is growing at its fastest pace since 2007

  • Electricity demand in the U.S. is projected to increase 3% this year, driven largely by air conditioning and an increase in data centers

“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 heatwaves,” IEA Director of Energy Markets and Security Keisuke Sadamori said in a statement.

Globally, electric vehicles, heat pumps and other technologies are forecast to increase electricity usage 4% this year and in 2025 — up from a 2.5% increase in 2023. Electricity demand is growing at its fastest pace since 2007, according to the report.

While solar is leading the charge for renewables, combined with wind, the two most popular types of renewables will meet up to 75% of electricity demand growth in 2024.

Renewable energy sources will increase to supply 35% of all demand next year — up from 30% in 2023. Next year, renewable electricity generation is expected to exceed coal-generated electricity for the first time.

The report noted that China and India are still generating a lot of power from coal, though it is possible Chinese hydropower could offset coal usage.

Both India and China are seeing especially large increases in electricity usage in 2024. The IEA attributed India’s 8% increase in demand to recent heatwaves that have pushed temperatures over 120 degrees, as well increased economic activity.

In the United States, electricity demand is forecast to increase 3% this year, driven largely by air conditioning and an increase in data centers.

“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,” Sadamori said. “At the same time, it’s crucial to expand and reinforce grids to provide citizens with secure and reliable electricity supply and to implement higher energy efficiency standards to reduce the impacts of increased cooling demand on power systems.”

The Paris Agreement signed by 196 countries in 2015 called for doubling energy efficiency globally, phasing out coal and reducing fossil fuel usage to 30% of the energy mix by 2030.