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IEA: Global Electricity Demand to Rise 3.3% in 2025

5 August 20251 min read
REPORTS & INDEXESIEA: GlobalElectricityDemand to Rise3.3% in 20255 August 2025safalsetu.com

Why in the news

The International Energy Agency’s Electricity Mid-Year Update 2025 projected faster growth in world power demand, with India and China driving most of the increase.

Key facts

  • Global demand is projected to rise 3.3% in 2025 and 3.7% in 2026, against a 2.6% average for 2015-2023.
  • India and China will make up 60% of the growth through 2026; India’s own demand grows 4% (2025) and 6.6% (2026).
  • Solar and wind should pass coal generation by 2025 or 2026, with their share rising from 15% in 2024 to 20% by 2026.
  • Coal’s share of generation is set to fall below 33% for the first time in a century.
  • Nuclear output is projected to hit record levels, growing 2% over 2025-2026.
SourceCapacity (GW)Share
Thermal242.0449.92%
Renewable184.6238.08%
Large hydro49.3810.19%
Nuclear8.781.81%

About the IEA and India’s energy mix

  • The International Energy Agency was founded in 1974 in Paris; India has been an Associate member since 2017.
  • In June 2025 India ranked 4th in renewable capacity and wind power, and 3rd in solar power capacity.

Exam angle

  • Know the 3.3% and 3.7% figures and India’s 6.6% for 2026.
  • Table values are June 2025 shares of installed capacity; renewables at 38.08% and non-fossil sources at 50.08%.
  • IEA facts: 1974, Paris, India an Associate member since 2017.

Test yourself

1. What growth in global electricity demand did the IEA project for 2026?

The IEA update projects 3.3% growth in 2025 and 3.7% in 2026.

2. Together, India and China are expected to account for what share of global demand growth through 2026?

They are projected to contribute 60% of the growth.

3. In which year was the International Energy Agency founded?

The IEA was founded in 1974 in Paris.

Sources: Drishti IAS