The IEA says global electricity use will grow by 4% each year, and by 3% in the Middle East, from 2025 to 2027
The International Energy Agency (IEA) in Paris said on Friday that global electricity use is expected to grow by about 4% each year until 2027. This growth is due to higher demand from industries, air conditioning, electrification, and data centers.
Global Electricity Demand Expected to Grow Fastest in Recent Years
The International Energy Agency (IEA) predicts that electricity use worldwide will grow at its fastest rate in recent years, according to its Electricity 2025 report.
Between 2025 and 2027, global electricity demand is expected to increase by an amount greater than Japan’s yearly electricity consumption each year.
The main reasons for this growth include:
- Higher electricity use in industries
- Increased demand for air conditioning
- Faster adoption of electric technologies
- The rapid expansion of data centers
About 85% of the increase in electricity demand will come from emerging and developing economies.
IEA’s Statement
IEA’s Director of Energy Markets and Security, Keisuke Sadamori, said that while most of the demand growth will come from developing countries, advanced economies will also see an increase in electricity use after a period of slow growth.
Electricity Demand in the Middle East
In the Middle East, electricity demand grew by 3.2% in 2024, up from 2.8% in 2023, due to an extremely hot summer that led to higher air conditioning use. From 2025 to 2027, demand is expected to rise by about 3% per year, driven by strong cooling needs and economic growth.
Power Generation Trends:
- Gas-fired power remains the main electricity source, rising by 2.9% last year. It is expected to grow by 5.3% annually as governments shift from oil to gas. The share of gas in electricity production will increase from 68% to 73%.
- Renewable energy is projected to grow by 14% per year, with its share rising from 5% to 7%. Solar power, especially in Saudi Arabia and the UAE, is leading this growth, increasing from 55% to 70% of total renewable energy.
- Nuclear power grew by 20% last year, mainly due to the UAE’s expansion in nuclear energy.
Electricity Demand by Country
- Saudi Arabia – Demand is expected to grow 3.3% per year through 2027, after rising 3.5% in 2024.
- UAE – Demand is forecasted to increase by 3% per year after a 2.8% rise in 2024.
- Kuwait – Faces power shortages due to growing demand, outdated power plants, and limited capacity. Demand is expected to rise by 3.3% annually, driven by population growth, water desalination needs, and increased cooling demand. It grew 4% in 2024.
- Qatar – Expected to see 3.8% annual demand growth, driven by strong economic activity and large industrial projects. Demand rose 5% in 2024.
- Oman – Demand growth is expected to slow to 3% per year from 2024 to 2027, after a sharp 6% rise in 2023 due to population growth and new energy-intensive industries.
Published: 15th February 2025
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