IEA Warns of New Era in Electricity Demand

The International Energy Agency (IEA) reports that the world is entering a new 'Age of Electricity,' with fossil fuel demand expected to peak by the end of the decade due to surplus oil and gas supplies, prompting increased investment in green energy. Electricity use is projected to grow six times faster than overall energy demand by 2035, driven by the electrification of transportation and buildings. However, despite the surge in renewables, the pace of clean energy development must accelerate to meet rising demands and support a climate-friendly future, especially as global CO2 emissions from electricity rose 20% from 2010 to 2023. Geopolitical tensions, particularly in the Middle East and Russia, could disrupt supply and add uncertainty to this transition. IEA Executive Director Fatih Birol emphasized the need for investment in clean technologies to address these challenges while leveraging potential surplus fossil fuel supplies to lower prices. The agency anticipates a record investment of $2 trillion in clean energy for 2024, nearly double that of fossil fuels.