Global electricity demand is expected to see significant growth due to economic expansion, increased cooling needs during heat waves, the rise of data centres, and ongoing electrification efforts. According to the International Energy Agency (IEA), this will result in one of the highest growth rates in the past 20 years for 2024 and 2025.
The IEA’s Electricity Mid-Year Update report predicts a 4% increase in global electricity demand this year, up from 2.5% last year, marking the highest growth rate since 2007, excluding rebounds after the 2008 financial crisis and the Covid pandemic. Another 4% increase is expected in 2025.
Ghana, however, is not expected to witness a similar surge in demand. Power System Economist Dr. Elikplim Apetorgbor explained to The High Street Journal that this rise is mainly due to expected weather changes in temperate regions, which Ghana does not experience.
Worldwide, renewable energy sources are growing quickly and significantly contributing to global electricity consumption. However, high cooling demand is expected to keep coal consumption high. The IEA notes that coal-fired power generation will remain resilient this year due to strong electricity demand, likely resulting in a slight increase in global power sector emissions.
Despite the rapid growth of renewables, increased electricity consumption, particularly in China and India, is leading to more coal-fired power generation. Global coal-fired power generation is expected to rise by less than 1% in 2024, highly dependent on hydro-power trends, especially in China.
The United States is set to see a significant rebound in electricity demand this year, with a 3% year-on-year increase, driven by an improved economic outlook, rising demand for air conditioning, and the expansion of data centers. U.S. power demand is forecast to rise by 1.9% in 2025.
In China, electricity demand is expected to grow by 6.5% in 2024, similar to its average growth rate between 2016 and 2019. India, the world’s fastest-growing major economy, is projected to see an 8% rise in electricity consumption in 2024, matching its rapid growth from last year.
