The share of renewables and nuclear in the global power mix is forecast to reach 50% by the end of this decade as electricity demand accelerates, according to the International Energy Agency’s latest Electricity 2026 report.
The IEA said global electricity demand is set to grow by more than 3.5% per year on average through 2030, with renewables, natural gas and nuclear generation all expanding to meet rising consumption.
The report added that electricity demand is on course to grow at least 2.5 times faster than overall energy demand as industrial electrification, electric vehicles, air conditioning and data centres continue to scale.
The agency noted that emerging and developing economies remain the main drivers of demand growth, but advanced economies are also seeing consumption rise again after 15 years of stagnation.
According to the IEA, electricity generation from renewables – boosted by record solar PV deployment – is now overtaking coal after reaching parity in 2025, with nuclear output also rising to a record level.
Low-emissions sources are set to generate half of global electricity by 2030, up from 42% today, the report said.
Natural gas-fired output is projected to grow over the period, supported by higher US demand and continued fuel switching from oil to gas in the Middle East.
Coal generation is expected to lose ground globally as renewables expand, returning to 2021 levels by the end of the decade, leading the IEA to forecast flat CO₂ emissions from electricity generation between now and 2030.
The agency warned that rising demand, a more weather-dependent generation mix and rapidly changing consumption patterns will require major investment in grids and flexibility.
It highlighted that more than 2500GW of renewable, storage and large-load projects remain stalled in global connection queues.
The IEA said deploying grid-enhancing technologies and implementing regulatory reforms for more flexible grid access could allow up to 1600GW of these queued projects to be integrated.
Keisuke Sadamori, IEA director of energy markets and security, said: “At a moment of significant uncertainty across energy markets, one certainty is that global electricity demand is growing much more strongly than it did over the past decade.”
He added: “Meeting this demand will require annual investment in grids to rise by 50% by 2030. Expanding flexibility will also be crucial as power networks continue to evolve – so will a strong focus on security and resilience.”
The report said utility-scale battery installations have grown sharply, with markets such as California, Germany, Texas, South Australia and the UK showing significant capacity additions.
It added that affordability remains a growing concern, with household electricity prices in many countries rising faster than incomes since 2019 and higher costs putting pressure on industry.
The IEA also stressed the need to strengthen the security and resilience of power systems, citing rising risks from ageing infrastructure, extreme weather, cyberthreats and new vulnerabilities.