Electricity Demand Surges Amid Supply Challenges Globally

Electricity prices are set to rise for New Jersey residents and small businesses, with an average increase of over $20 per month starting June 1, as per the New Jersey Board of Public Utilities (BPU). This hike is attributed to higher demand and limited supply growth, exacerbated by factors such as AI usage, cryptomining, and the push for US manufacturing. Globally, electricity demand is projected to grow by 4% annually through 2027, mainly driven by the electrification of transportation and increased energy consumption from data centers, particularly in emerging markets like China and India. China is expected to account for a significant portion of this increase, with its electricity consumption rising by 7% in 2024 alone. The International Energy Agency anticipates that renewable energy sources will meet a substantial part of this demand growth, particularly solar power, which is expected to dominate the energy mix in the coming years. As countries grapple with these rising demands, the need for sustainable and affordable electricity solutions becomes increasingly urgent.