The International Energy Agency (IEA) has released its World Energy Outlook 2024, revealing that clean energy is being integrated into the global energy system at an unprecedented rate, though this deployment varies significantly across technologies and markets. The report outlines how a more electrified energy system is emerging as global electricity demand continues to soar.
Over the past decade, electricity consumption has expanded at double the rate of overall energy demand, with China accounting for two-thirds of the global increase in electricity demand during this period. IEA Executive Director Fatih Birol emphasized the significance of this trend, stating, “In previous World Energy Outlooks, the IEA made it clear that the future of the global energy system is electric – and now it is visible to everyone.”
Birol likened the current energy transition to historical phases, noting, “In energy history, we have witnessed the Age of Coal and the Age of Oil – and we are now moving at speed into the Age of Electricity, which will define the global energy system going forward and increasingly be based on clean sources of electricity.”
The report further highlights China’s critical role in this transformation. “Whether it is investment, fossil fuel demand, electricity consumption, deployment of renewables, the market for EVs, or clean technology manufacturing, we are now in a world where almost every energy story is essentially a China story,” Birol explained. He added that China’s solar expansion is progressing rapidly, predicting that by the early 2030s, China’s solar power generation alone could exceed the current total electricity demand of the United States.
Global electricity demand is expected to accelerate further, adding an equivalent of Japan’s electricity demand to global use each year, based on existing policy settings. The report stresses that to sustain this growth in clean energy, substantial investments in new energy systems are essential, particularly in electricity grids and energy storage.
Currently, for every dollar spent on renewable power, only 60 cents are allocated to grids and storage, indicating that the supporting infrastructure is not keeping pace with the clean energy transition. The report forecasts that to secure the decarbonisation of the electricity sector, investments in grids and storage must outpace clean generation, aiming for an investment ratio to rebalance to 1:1.
Additionally, the IEA warns that many power systems are vulnerable to extreme weather events, emphasizing the need for enhanced resilience and digital security measures in energy infrastructure.
