The record
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- The International Energy Agency, in its Electricity Mid-Year Update, projects global electricity demand growth will accelerate to 3.6 per cent in 2026 and 3.8 per cent in 2027, up from 3 per cent in 2025.
- It expects renewables to overtake coal as the world's largest source of electricity generation in 2026, with solar and wind rising from 17 per cent of supply in 2025 to 21 per cent in 2027.
- Demand growth is led by India at 7 per cent and China at 5.5 per cent, driven by industry, air conditioning, electric vehicles and data centres, while the Middle East energy shock has raised generation costs without halting demand growth.
- The report matters because it signals both rising electricity needs and a faster clean-energy transition, alongside continued reliance on coal due to higher gas prices.
What to watch next
- Whether renewables officially overtake coal as the largest generation source in 2026 as projected
- Impact of LNG supply disruptions on electricity consumption in price-sensitive Asian markets like Pakistan and Bangladesh
- Effect of a potentially stronger-than-expected El Nino in 2026 on cooling-driven electricity demand
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Named China · India · United States · Pakistan · Bangladesh · European Union · Middle East · US-Israeli war on Iran · IEA · International Energy Agency
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