IEA Predicts Electricity to Meet 33% of Global Energy by 2035

The International Energy Agency predicts that electricity could cost-effectively meet 33% of global final energy consumption by 2035, rising from the current 23%. The analysis, prepared at the request of the governments of Türkiye and Australia for COP31 discussions, suggests that accelerated electrification could reduce global oil consumption by 18 million barrels per day.

This shift could lower energy import costs for fuel-importing nations by more than $400 billion by 2035. The agency notes that carbon dioxide emissions in transport, buildings, and industry could fall by 40% under this scenario. Current growth is primarily driven by the expansion of data centers, electric vehicles, air conditioning, and advanced manufacturing.

To achieve these targets, the agency warns that significant investment is required for power generation and grid infrastructure. Additionally, nations must develop strategies to mitigate supply chain concentrations for critical minerals and address emerging cybersecurity risks.