Letter on carbon: Power struggle

Electricity demand is growing at its fastest rate for 17 years as the energy transition struggles to keep pace with its own renewable power needs

Is the transition in danger of getting stuck in an electricity demand doom loop? Global demand for power is forecast to rise by around 4% this year, up from growth of 2.5% in 2023. That is the fastest increase since 2007, excluding the exceptional rebounds seen in the wake of the global financial crisis and the Covid-19 pandemic, according to the IEA. Next year is expected to see similar growth. Power demand usually correlates pretty closely with GDP growth, and this is borne out by the IEA electricity consumption growth forecasts for India and China, which come in at 8% and 6% respectively. However, a closer look at the recent demand drivers points to both the impact of climate change—mainl