Overview
- The IEA’s Electricity 2026 report forecasts global power demand to grow about 3.6% annually through 2030, with advanced economies returning to sustained load growth driven by data centers, EVs and heat pumps.
- Low‑emissions sources are on track to supply roughly 50% of global generation by 2030 as renewables and nuclear expand, while natural gas output also increases and power‑sector emissions are expected to plateau.
- More than 2,500 GW of projects remain stuck in interconnection queues worldwide, and annual investment in transmission and distribution needs to rise by about 50% by 2030 to keep pace.
- The IEA estimates 1,200–1,600 GW could be integrated sooner through regulatory reform, flexible connection agreements and grid‑enhancing tools such as dynamic line ratings, reconductoring and advanced power‑flow control.
- Energy storage is scaling as a key flexibility resource, with rapid utility‑scale additions in California, Germany, Texas, South Australia and the UK, a maturing and increasingly concentrated European market led by Enel, and strong U.S. residential growth in 2025 as costs fell sharply.