Global electricity demand growth is accelerating again

The growth rate of global electricity demand is accelerating. After easing to 3.0% in 2025, the IEA forecasts demand will jump to 3.6% in 2026 and 3.8% in 2027, adding 2,100 TWh in two years. This is more than the annual electricity use of many major economies.

Faster electricity growth changes the arithmetic of the transition. Every new terawatt-hour has to be met by something, and where it is met by coal or gas the emissions intensity of the grid stops falling. Where it is met by low-emissions sources, the same growth becomes the vehicle for decarbonizing industry, transport and heating at once.

For companies with large Scope 3 footprints, the practical question is which of their suppliers sit on grids that will absorb this growth cleanly and which will not. Co-financing renewable supply at supplier sites, and claiming the verified reduction inside the value chain, is one way to answer that question without waiting for the local grid to catch up.