Electricity 2024

Analysis and forecast to 2026 INTERNATIONAL ENERGYAGENCY The IEA examines thefull spectrumof energy issuesincluding oil, gas andcoal supply anddemand, renewableenergy technologies,electricity markets,energy efficiency,access to energy,demand sidemanagement andmuch more. Throughits work, the IEAadvocates policies thatwill enhance thereliability, affordabilityand sustainability ofenergy in its31member countries,13associationcountries and beyond. IEA membercountries: IEA associationcountries: AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLithuaniaLuxembourgMexicoNetherlandsNew ZealandNorwayPolandPortugalSlovak RepublicSpainSwedenSwitzerlandRepublic of TürkiyeUnited KingdomUnited States ArgentinaBrazilChinaEgyptIndiaIndonesiaKenyaMoroccoSenegalSingaporeSouth AfricaThailandUkraine This publication and anymap included herein arewithout prejudice to thestatus of or sovereignty overany territory, to thedelimitation of internationalfrontiers and boundaries andto the name of any territory,city or area. The EuropeanCommission alsoparticipates in thework of the IEA Revised version,January andMay2024Information notice found at:www.iea.org/corrections Source: IEA.International Energy AgencyWebsite: www.iea.org Abstract Electricity is central to the functioning of modern societies and economies – andits importance is only growing as technologies that run on electricity, such aselectric vehicles and heat pumps, become increasingly popular. Power generationis currently the largest source of carbon dioxide (CO2) emissions in the world, butit is also the sector leading the transition to net zero emissions through the rapidexpansion of renewable energy sources such as solar and wind power. Ensuringconsumers have secure and affordable access to electricity while also reducingglobal carbon dioxide (CO2) emissions is one of the core challenges of the energytransition. Given these trends, the International Energy Agency’sElectricity 2024is essentialreading. It offers a deep and comprehensive analysis of recent policies and marketdevelopments, and provides forecasts through 2026 for electricity demand, supplyand CO2emissions. The IEA’s electricity sector report, which has been publishedregularly since 2020, provides insight into the evolving generation mix. In addition,this year’s report features in-depth analysis on the drivers of recent declines inelectricity demand in Europe; the data centre sector’s impacton electricityconsumption; and recent developments in the global nuclear power sector. Acknowledgements, contributorsand credits This study was prepared by the Gas, Coal and Power Markets (GCP) Division ofthe International Energy Agency (IEA). It was designed and directed by Eren Çam,Energy Analyst for Electricity. The main authors are: Eren Çam, Zoe Hungerford, Niklas Schoch, Francys PintoMiranda, Carlos David Yáñez de León. Keisuke Sadamori, director of the IEA Energy Markets and Security (EMS)Directorate and Dennis Hesseling, Head of GCP, provided expert guidance andadvice.Valuable comments and guidance were provided by other seniormanagement within the IEA, in particular, Laura Cozzi and Tim Gould. In addition,expert guidance and valuable input of Carlos Fernández Álvarez, Senior EnergyAnalyst, is greatly appreciated. The report also benefited from analysis, data and input from Syrine El Abed,Nadim Abillama, Jenny Birkeland, Javier Jorquera Copier, Keith Everhart, CaroleEtienne, Stavroula Evangelopoulou, Takeshi Furukawa, Gaia Guadagnini, AsthaGupta,Craig Hart,Julian Keutz,Jinpyung Kim,Pablo Hevia-Koch,RenaKuwahata, Arne Lilienkamp, Rita Madeira, Gergely Molnár, John Moloney, YuNagatomi, Ranya Oualid, Camille Paillard, Isaac Portugal, Brendan Reidenbach,Frederick Ritter. IEAcolleagues across the agency provided valuable input,comments andfeedback, in particular, Heymi Bahar, Alessandro Blasi, Toril Bosoni, StéphanieBouckaert, Elizabeth Connelly, Ciarán Healy, Paul Hugues, Tae-Yoon Kim, MartinKüppers,Yannick Monschauer,Apostolos Petropoulos,Uwe Remme,MaxSchönfisch, Leonie Staas, Gianluca Tonolo, Anthony Vautrin, Brent Wanner andJacques Warichet. Theauthors would also like to thank Diane Munro for skilfully editing themanuscript and the IEA Communication and Digital Office, in particular, JethroMullen, Julia Horowitz and Astrid Dumond. We also thank Einar Einarsson for hisassistance on setting up the peer review. Many experts from outside of the IEA reviewed the report and provided valuableinput and comments. They include: Michel Berthélemy (NEA), Sarah Keay-Bright (ESO), Bram Claeys (RAP), BrentDixon (INL), Ganesh Doluweera (CER), Fernando Dominguez (EU DSO Entity), Carlos Finat (KAEL), Peter Fraser (independent consultant), Rafael MuruaisGarcia(ACER EUROPA),Rafaila Grigoriou(VaasaETT),Edwin Haesen(ENTSOE),Jan Horst Keppler(NEA),Donghoon Kim(SK),Wikus Kruger(University of Cape Town), Francisco Laverón (Iberdrola), King Lee (WNA), Stefan