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Energy Demand to Surge in 2024, Renewables Growth Vital – IEA

According to the latest Electricity Market Report by the International Energy Agency (IEA), global electricity demand is expected to witness a slowdown in 2023, with demand rebounding next year, emphasising the importance of renewables. The IEA’s July update reveals that the US is projected to experience a nearly 2% decline in electricity demand this year, while Japan’s demand is expected to drop by 3%. Similarly, the EU is forecast to witness a 3% decrease in electricity demand, similar to the decline recorded in 2022. This will mark the EU’s largest consecutive slump in electricity demand, setting consumption levels back to those last seen in 2002. As a result, global electricity demand is estimated to grow by just under 2% this year, down from the 2.3% growth rate observed in 2022. However, the IEA’s projections indicate that, assuming an improved global economic outlook, demand growth will bounce back in 2024, reaching a rate of 3.3%. While global electricity demand growth may continue, the focus on renewables has become more critical than ever. The rise in electricity demand is primarily driven by efforts to reduce emissions through the electrification of energy systems, increasing indoor cooling needs due to rising temperatures, and robust demand growth in emerging and developing economies. China’s electricity demand is projected to increase at an annual average rate of 5.2% over the next two years, while India’s growth is estimated at 6.5%, surpassing its 2015-19 average. “The world’s need for electricity is set to grow strongly in the years to come. The global increase in demand through 2024 is expected to amount to about three times the current electricity consumption of Germany,” said Keisuke Sadamori, the IEA’s Director for Energy Markets and Security. “And 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. Now is the time for policy makers and the private sector to build on this momentum to ensure emissions from the power sector go into sustained decline.” 

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