Azernews.Az

Ulviyya Poladova

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Global demand for electricity continues to rise, driven by industrial production, the growing adoption of electric vehicles, increased use of air conditioners, and the expansion of data centers, AzerNEWS reports.

According to a report by the International Energy Agency (IEA), global electricity demand is projected to increase by 3.6% in 2026 and 3.8% in 2027, exceeding the 3% growth recorded in 2025. Global electricity consumption is expected to rise from 28,600 terawatt-hours (TWh) in 2025 to 30,700 TWh by 2027.

The report states that disruptions in the global natural gas market caused by tensions in the Middle East have increased the cost of electricity generation in many regions. Nevertheless, strong demand from industry, household appliances, cooling systems, electric vehicles, and data centers is expected to sustain the growth in electricity consumption.

Interruptions to LNG shipments through the Strait of Hormuz have pushed gas prices in Asia and Europe to their highest levels since the 2022–2023 energy crisis. Although several countries have implemented emergency measures to curb energy consumption, additional LNG supplies have helped ease market pressures to some extent. However, high gas prices have led some countries in Asia and Europe to substitute coal for natural gas in electricity generation.

The report emphasizes that solar power will remain the primary driver of growth in global electricity generation.

It also notes that electricity demand will continue to grow rapidly in the world's leading economies. In China, demand is expected to increase by 5.5% in 2026, while India is projected to see growth of 7%. In contrast, electricity demand in the United States and the European Union is forecast to grow at a more moderate pace of around 2%. Meanwhile, high fuel prices and supply constraints are negatively affecting electricity consumption in LNG import-dependent countries such as Pakistan and Bangladesh.