Global electricity demand to accelerate as renewables become largest electricity source in 2026: IEA

Renewables are on track to become the world's largest source of electricity generation in 2026, overtaking coal after reaching near parity in 2025, while global electricity demand is expected to accelerate through 2027, the International Energy Agency (IEA) said on Thursday, El.kz cites Xinhua.

According to the IEA's latest Electricity Mid-Year Update, global electricity demand is forecast to increase by 3.6 percent in 2026 and by a further 3.8 percent in 2027, following 3 percent growth in 2025. Global electricity consumption is projected to reach 30,700 terawatt-hours (TWh) in 2027, up from 28,600 TWh in 2025.

The report said the Middle East crisis has temporarily raised electricity generation costs, while emergency energy conservation measures have been introduced in some regions. Nevertheless, global power demand is expected to continue rising at a faster pace over the next two years.

After reaching near parity with coal in 2025, electricity generation from renewables is projected to grow by more than 8 percent in 2026, overtaking coal as the world's largest source of electricity generation. Its share of global electricity generation is expected to rise from 33 percent in 2025 to 37 percent by 2027.

Solar power is expected to remain the largest contributor to global electricity supply growth, and its output is forecast to increase by around 600 TWh in 2026, roughly matching the record expansion recorded in 2025, the report said.