OIES – Global Electricity Demand: What’s Driving Growth and Why It Matters

The report by OIES "Global Electricity Demand: What’s Driving Growth and Why It Matters" explores the factors influencing the rise in global electricity demand and its implications for energy policy and market dynamics. Global electricity demand is expected to grow due to increased economic activity, the use of air conditioning during heatwaves, and the adoption of electric vehicles (EVs) and heat pumps. In 2023, key technologies like EVs, heat pumps, electrolysers, air conditioning, and data centers were major contributors to demand growth. EVs, accounting for 20% of new car sales, lead this demand, especially in China. Heat pumps are crucial for building decarbonization but depend on supportive policies. The report emphasizes the need for integrated energy policies to manage this demand sustainably.