The International Energy Agency announced on Friday that the electricity generated from renewable sources worldwide is expected to exceed output from coal-fired plants for the first time in 2025. The forecast is driven by a projected four percent increase in electricity demand this year and next, compared to 2.5 percent growth in 2023.
This growth in demand, the highest since 2007, is in part due to the increasing role of electricity in economies and the impact of severe heatwaves, according to Keisuke Sadamori, the IEA’s director of energy markets and security.
Renewable sources such as hydroelectric, solar, and wind are anticipated to account for 35 percent of global electricity supply in 2025, up from 30 percent in 2023. Solar energy alone is set to meet half of the demand growth, with wind contributing another 25 percent.
Despite the rise in renewable energy, coal consumption is not expected to decline, particularly in China and India where electricity demand is growing significantly. Heatwaves in India are projected to increase electricity demand by eight percent this year, while China’s demand is expected to grow by six percent.
European demand is forecasted to increase by 1.7 percent, and in the United States, a three percent rise in electricity use is anticipated, driven in part by the development of data centers for artificial intelligence.
Sadamori emphasized the need for clean energy to play a larger role in the energy mix to meet global energy and climate objectives. He also called for higher energy efficiency standards to mitigate the impact of increased cooling demand on power systems.
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