5% per year, driven by the growth of electric vehicles, data centers, and artificial intelligence, as well as increasing air conditioner usage in a warming world. 5 times faster than total energy demand over the next five years, with emerging economies and advanced economies contributing to the surge.
On the supply side, renewables are closing in on coal, with global renewable electricity generation now surpassing coal in 2025. By 2030, renewables and nuclear together are expected to provide half of the world's electricity.
However, the grid is struggling to keep up, with over 2,500 gigawatts of projects stuck in grid connection queues, waiting years for approval. The IEA estimates that annual investment in electricity grids will need to rise by about 50% by 2030 to meet demand growth.
The report also flags growing risks to grid security and resilience, including ageing infrastructure, extreme weather, cyber threats, and physical attacks. Modernizing grid operations and strengthening protections around critical infrastructure are no longer optional if power systems are going to handle the next wave of electrification.
The IEA's report highlights the urgent need for grid modernization and regulatory reform to ensure a stable and secure electricity supply as demand continues to rise. The growth of renewable energy sources is a positive trend, but it must be matched with investments in grid infrastructure and technologies to avoid bottlenecks.
