The International Energy Agency’s World Energy Outlook 2025 confirms that electricity is quickly becoming the backbone of the global energy system. Electricity demand is soaring. Renewables are continuing to rise globally. But Governments are too slow in delivering the infrastructure needed to electrify industry, mobility and heating. And they need to address new supply chain risks.
This month the International Energy Agency (IEA) published its World Energy Outlook 2025 in which it claims that the world has entered the “age of electricity”.
The IEA estimates that electricity demand will rise by 40–50% by 2035, driven by electrified industry, transport, digitalisation and heating. Investment in electricity supply and electrification already accounts for half of today’s global energy investment. Global investment in data centres is expected to reach $580 billion in 2025.
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Download free sample pagesTo meet this electricity demand, renewables – wind and solar in particular – will continue to rise globally, the IEA’s Outlook states. Renewables are the fastest-growing energy source in all scenarios presented in the World Energy Outlook.
More investments in grids and storage required
The message from this year’s World Energy Outlook is clear. Europe must accelerate wind energy deployment and build electricity grids that can match this buildout.
Investments in electricity generation have charged ahead by almost 70% since 2015. But annual grid spending has risen at less than half that pace. Electricity connections and storage are lagging. This creates grid congestion, higher electricity prices and curtailed renewables output.
Without faster permitting and investment in infrastructure, Europe will fall behind in the “age of electricity”. It will lose its position as technology leader in clean tech. And it will put its economic competitiveness at risk, as China is pushing ahead, electrifying their economies. The “age of electricity” in short: the future is electric – and renewables are leading the charge.
Energy security depends on the grid. That’s the message from COP30, the IEA’s World Energy Outlook – and from anyone who wants cheaper, cleaner energy. The European Commission is set to present its EU Grids Package on 10 December to fix bottlenecks in Europe’s electricity system.
What should it do?
This will help unlock GW of wind energy currently waiting for their grid connection permits. Now Member States will have to move fast to implement it.
