The “Electricity Mid-Year Update” report recently released on the official website of the International Energy Agency (IEA) stated that in 2025, global renewable energy generation will exceed that of coal-fired power plants for the first time.
This shift marks an important milestone in the global energy sector. In addition, driven by robust economic growth, the frequent occurrence of extreme heatwaves, and the increasing popularity of electric-powered technologies such as electric vehicles, global electricity demand is growing rapidly. Global electricity demand is going to grow by 4% in both this year and next year, higher than the 2.5% growth in 2023. Renewable energy overtakes coal-fired power in many regions.
The International Energy Agency (IEA) stated that by 2025, solar power generation is going to meet more than half of the world’s additional electricity demand, indicating that renewable energy overtakes coal-fired power in meeting new demand.
The report pointed out that next year, hydropower, solar power, wind power, and other renewable energy sources are going to account for 35% of the total global electricity supply, up from 30% in 2023. Among them, solar photovoltaic power generation is expected to set a new record. Solar power generation will satisfy more than half of the world’s additional electricity demand, while wind power will provide another 25%.
The IEA noted that for specific countries and regions, like India is going to see an 8% increase in electricity demand due to the severe heatwaves experienced this summer. In Europe, electricity demand is going to grow by 1.7% this year. In the United States, the development of AI has driven the construction of big data centers. That resulted in a 3% increase this year.
The IEA stated that the soaring global demand for electricity reflects the growing role of electricity in the economy. They also highlighted the challenges posed to power systems by extreme climate events such as heatwaves. In many regions of the world, the increase in air conditioning usage has become a significant factor driving the growth. Especially in the first half of this year, multiple regions around the world have experienced heatwaves, further exacerbating the pressure on power systems.
While the share of clean energy in the power mix continues to rise, this process needs to be accelerated to achieve international energy and climate goals. It also urged countries to implement higher energy efficiency standards to reduce the burden on power systems caused by the increasing demand for cooling equipment such as air conditioners. This highlights how renewable energy overtakes coal-fired power in importance.
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Source: Renewable electricity generation to surpass coal next year – IEA | Windpower Monthly