According to a recent market report by the International Energy Agency (IEA), global electricity demand is anticipated to decelerate this year due to the ongoing energy crisis and economic slowdown in advanced economies. However, the IEA predicts a rebound in demand in 2024.
Slower Growth in Electricity Demand
The IEA’s data reveals that overall electricity demand is projected to increase by less than 2% in 2023, compared to a growth rate of 2.3% in 2022. Notably, Japan and the European Union are expected to experience a 3% decline in demand, while the United States is likely to see a decrease of almost 2%.
Optimistic Outlook for 2024
Despite the temporary slowdown, the IEA remains positive about the future of global electricity demand. The agency predicts a rebound to 3.3% growth in 2024, with renewable energy sources accounting for over one-third of the global electricity generation share.
Renewable Energy as the Driving Force
Keisuke Sadamori, the IEA’s director for energy markets and security, emphasizes the increasing importance of renewables in meeting the world’s growing electricity needs. He states, “We’re encouraged to see renewables accounting for a rising share of electricity generation, resulting in declines in the use of fossil fuels for power generation.”
Key Drivers for Future Demand
The IEA expects several factors to support continued demand for electricity. These include the ongoing electrification of energy systems, the rising use of indoor cooling systems driven by higher temperatures, and growth in emerging and developing economies.
In conclusion, while global electricity demand is anticipated to slow down in 2023, the IEA projects a rebound in 2024. The growing share of renewables in the electricity generation mix reflects the increasing global focus on sustainable and clean energy sources.
