Underinvestment in Developing Economies
Lawrence Jones is Senior Vice President of EEI International Programs.
The demand for electricity is accelerating across the globe. The International Energy Agency estimates that electricity demand will grow an average of 3.4 percent through 2026. What are the main drivers of this demand growth, and are we prepared as a global community to meet the challenge?
Although global energy demand projections show a slowdown in growth due to economic factors, electricity demand is expected to continue accelerating, especially as governments and businesses around the world are focusing on identifying opportunities to transition energy systems and further global electrification.
Over the past year, discussions about rising electricity demand have focused on the rise of data centers and the increased use of artificial intelligence. While these certainly are driving factors in rising demand, we also are seeing impacts from increased electrification across the economy, including the industrial and transportation sectors, and the onshoring of manufacturing, particularly in the United States.