Global electricity demand is entering a decisive growth phase. IEA’s 2026 electricity report forecasts that over the next five years, power consumption is set to rise faster than at any time in recent decades, marking a structural shift in how the world uses energy. This trend reflects the rapid electrification of industries, transport, buildings, and digital infrastructure, alongside climate-driven demand for cooling and heating.
Unlike previous cycles, electricity demand is no longer simply following economic growth. Instead, power consumption is becoming a leading driver of economic activity. This shift signals the arrival of what analysts increasingly call the “Age of Electricity,” where power is the backbone of modern economies and decarbonization strategies.
Let’s deep dive into IEA’s report here to understand the present and the future of electricity demand.
Electricity Demand Breaks Away from Economic Growth
Global electricity demand is projected to grow at an average annual rate of around 3.6% between 2026 and 2030, significantly faster than the growth seen over the past decade. In contrast, total energy demand will rise much more slowly, meaning electricity will expand at least 2.5 times faster than overall energy consumption.
This divergence marks a fundamental change. Historically, electricity consumption closely tracked GDP growth. That relationship is now reversing. In 2024, electricity demand outpaced economic growth globally for the first time in three decades outside of crisis periods, and this trend is expected to continue.
Several structural drivers are accelerating this shift:
- Electrification of transport, especially electric vehicles
- Expansion of data centres and artificial intelligence workloads
- Rising demand for air conditioning due to climate change
- Industrial electrification and reshoring
- Growth in heat pumps and electric heating
Together, these trends are pushing electricity to become the dominant form of final energy consumption.
Emerging economies will remain the main engine of demand growth, accounting for roughly 80% of new electricity consumption through 2030. However, advanced economies are also seeing a resurgence after more than a decade of stagnation, driven by digitalization and electrification.

Global Power Mix: Renewables and Nuclear Take Half the Market
Globally, renewables and nuclear are on track to supply around 50% of electricity generation by 2030. Solar is the fastest-growing source, contributing more than half of annual generation additions.
Renewable generation is expected to grow by about 1,000 TWh per year through 2030, with solar alone adding more than 600 TWh annually. Nuclear power is also gaining momentum, supported by reactor restarts, lifetime extensions, and new builds in emerging economies.
However, coal will likely remain the single largest source of electricity in 2030, even as its share declines. Natural gas generation is also expected to rise, driven by US demand and fuel switching in the Middle East.
Overall, renewables, nuclear, and gas are projected to meet all net new electricity demand globally, displacing coal in aggregate but not eliminating it.

Advanced Economies Re-Enter the Demand Growth Cycle
Electricity demand in advanced economies is rising again after a prolonged period of stagnation. In the United States, demand is projected to grow by around 2% annually through 2030, with data centres accounting for roughly half of the increase.
In the European Union, electricity demand is expected to grow at around 2% per year, though consumption may not return to pre-2021 levels until the late 2020s. Other advanced economies, including Japan, Canada, Korea, and Australia, are also seeing accelerating growth.
This resurgence reflects:
- AI and cloud computing expansion
- Electrification of heating and transport
- Industrial reshoring and new manufacturing facilities
- Climate-driven cooling demand
Electricity is becoming a core input for economic competitiveness in digital and industrial sectors.
Power Sector Emissions: Plateau but Not Yet Declining Fast Enough
Electricity generation remains the largest source of energy-related carbon dioxide emissions, producing roughly 13.9 billion tonnes of CO₂ per year. After rising between 2022 and 2024, power sector emissions stabilised in 2025.
Looking ahead, emissions are expected to plateau through 2030, rather than decline sharply. This reflects the rapid growth in electricity demand, offsetting gains from clean power deployment.

The carbon intensity of electricity has already fallen by around 14% over the past decade, and it is expected to decline faster as low-emission generation expands. This decline is mainly due to more renewable energy and strong nuclear power output.
- The trend is expected to accelerate. CO₂ intensity is forecast to fall by around 3.7% per year, dropping from 435 g CO₂ per kWh in 2025 to about 360 g CO₂ per kWh by 2030.
However, absolute emissions reductions will be harder to achieve due to rising demand. China’s trajectory is particularly critical. As the world’s largest power market and emitter, its pace of renewable deployment, coal retirement, and grid reform will heavily influence global climate outcomes.

China: The Single Largest Driver of Global Electricity Growth
China will remain the central force shaping global electricity demand over the next decade. Despite slower economic growth and structural shifts toward services, China’s sheer scale means it will contribute close to half of global electricity demand growth through 2030.
Electricity demand in China rose by just over 5% in 2025, down from roughly 7% in 2024. Looking ahead, demand is expected to grow at an average of around 4.9% annually between 2026 and 2030, slower than the past decade but still massive in absolute terms.
The drivers are multifaceted:
- Continued electrification across industry and households
- Expansion of manufacturing, including clean energy supply chains
- Growing services sector electricity use
- Rising cooling demand due to extreme heat events
- Digital infrastructure and smart technologies

China’s power demand growth over the next five years alone is expected to match the current total electricity consumption of the European Union. This highlights the scale of China’s influence on global power markets, fuel demand, and emissions trajectories.
At the same time, efficiency improvements are tempering demand growth. Government policies targeting lower energy intensity and more efficient appliances are helping reduce electricity use per unit of GDP. However, these gains are not enough to offset the scale of electrification and economic activity.
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Renewables Surge, But Grid Constraints Loom Large
China’s renewable energy buildout continues at an unprecedented pace. Solar generation jumped by more than 40% in 2025, while wind grew by double digits. The share of variable renewable energy (VRE) in China’s power mix reached around 22%, up sharply from the previous year.
Record capacity additions are transforming the power system. More than 300 GW of solar and over 100 GW of wind were added in a single year, driven partly by developers rushing to complete projects before the end of fixed-price tariffs.
However, this rapid expansion is creating new challenges. Curtailment rates for solar and wind increased, reflecting grid congestion and integration constraints. This highlights a global issue: generation is growing faster than grid infrastructure.
Coal’s Role Is Changing, Not Disappearing
Despite the renewable boom, coal remains a dominant force in China’s power sector. Coal-fired generation declined slightly in 2025, but coal still accounts for the largest share of electricity generation.
China’s coal share is expected to fall from around 55% in 2025 to about 43% by 2030, reflecting the rapid expansion of renewables and nuclear. However, coal capacity continues to grow, driven by projects approved during the 2022–2023 permitting boom.
Rather than serving as baseload power, coal plants are increasingly being used as flexibility and backup resources to support variable renewables. Capacity utilisation is expected to decline, even as installed capacity rises.
This shift illustrates a broader global trend: coal is becoming a reliability asset rather than a growth engine, but its persistence complicates decarbonization efforts.
Grids and Flexibility: The Hidden Bottleneck
The transition to an electricity-centric energy system depends on grid expansion and flexibility. Investment in grids currently lags far behind generation capacity additions. Worldwide, more than 2,500 GW of projects are stuck in grid connection queues, including renewables, storage, and large industrial loads such as data centres. Without faster grid expansion and smarter system management, power shortages and curtailment risks will rise.
Meeting projected demand will require around 50% higher annual grid investment by 2030, rising from roughly USD 400 billion today. Without this, congestion, curtailment, and reliability risks will increase.
Flexibility solutions are also scaling rapidly. Utility-scale battery deployment is accelerating, especially in regions with high solar and wind penetration. However, conventional power plants still provide most flexibility today.
Policy reforms, grid-enhancing technologies, and non-firm connection agreements could unlock 1,200–1,600 GW of stalled projects, significantly accelerating the transition.

The Global Outlook: A Power-Centric Energy System
The global energy system is undergoing a structural transformation. Electricity is becoming the dominant vector for economic growth, digitalization, and decarbonization. Demand growth is accelerating across emerging and advanced economies, with China playing the most decisive role.
Renewables and nuclear are rapidly expanding, but coal and gas will remain part of the mix for reliability. Emissions are stabilising but not falling fast enough to meet climate targets, highlighting the scale of the challenge ahead.
The next five years will be critical. Grid expansion, flexibility solutions, and policy reforms will determine whether the Age of Electricity delivers a clean, affordable, and resilient energy future—or locks in new infrastructure bottlenecks and emissions risks.
- ALSO READ: 2026: The Year Nuclear Power Reclaims Relevance With 15 Reactors, AI Demand, and China’s Expansion
The post How Power Demand, Emissions, and China Will Shape the Global Energy System to 2030 appeared first on Carbon Credits.
Carbon Footprint
Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia
The voluntary carbon market is changing. Buyers are no longer focused only on large volumes of cheap credits. Instead, they want projects with strong science, long-term monitoring, and clear proof that carbon has truly been removed from the atmosphere. That shift is drawing more attention to high-integrity, nature-based projects.
One project now gaining that spotlight is the Sabah INFAPRO rainforest rehabilitation project in Malaysia. Climate Impact Partners announced that the project is now issuing verified carbon removal credits, opening access to one of the highest-quality nature-based removals currently available in the global market.
Restoring One of the World’s Richest Rainforest Ecosystems
The project is located in Sabah, Malaysia, on the island of Borneo. This region is home to tropical dipterocarp rainforest, one of the richest forest ecosystems on Earth. These forests store huge amounts of carbon and support extraordinary biodiversity. Some dipterocarp trees can grow up to 70 meters tall, creating habitat for orangutans, pygmy elephants, gibbons, sun bears, and the critically endangered Sumatran rhino.
However, the forest within the INFAPRO project area was not intact. In the 1980s, selective logging removed many of the most valuable tree species, especially large dipterocarps. That caused serious ecological damage. Once the key mother trees were gone, natural regeneration became much harder. Young seedlings also had to compete with dense vines and shrubs, which slowed the forest’s recovery.
To repair that damage, the INFAPRO project was launched in the Ulu-Segama forestry management unit in eastern Sabah.
- The project has restored more than 25,000 hectares of logged-over rainforest.
- It was developed by Face the Future in cooperation with Yayasan Sabah, while Climate Impact Partners has supported the project and helped bring its credits to market.
Why Sabah’s Carbon Removals are Attracting Attention
What makes Sabah INFAPRO different is not only the size of the restoration effort. It is also the way the project measured carbon gains.

Many forest carbon projects issue credits in annual vintages based on year-by-year growth estimates. Sabah INFAPRO followed a different path. It used a landscape-scale monitoring system and waited until the forest moved through its strongest natural growth period before issuing removal credits.
- This approach gives the credits more weight. Rather than relying mainly on short-term annual estimates, the project measured carbon sequestration over a longer period. That helps show that the forest delivered real, sustained, and measurable carbon removal.
The scientific backing is also unusually strong. Since 2007, the project has maintained nearly 400 permanent monitoring plots. These plots have allowed researchers, independent auditors, and technical specialists to observe the full growth cycle of dipterocarp forest recovery. The result is a large body of field data that supports carbon calculations and strengthens confidence in the credits.
In simple terms, buyers are not just being asked to trust a model. They are being shown years of direct forest monitoring across the project landscape.
Strong Ratings Support Market Confidence
Independent assessment has also lifted the project’s profile. BeZero awarded Sabah INFAPRO an A.pre overall rating and an AA score for permanence. That places the project among the highest-rated Improved Forest Management, or IFM, projects in the world.
The rating reflects several important strengths. First, the project has very low exposure to reversal risk. Second, it has a long and stable operating history. Third, its measured carbon gains align well with peer-reviewed ecological research and independent analysis.
These points matter in today’s market. Buyers have become more cautious after years of debate over the quality of some forest carbon credits. As a result, they now look more closely at durability, transparency, and third-party validation. Sabah INFAPRO’s rating helps answer those concerns and makes the project more attractive to companies looking for credible carbon removal.
The project is also registered with Verra’s Verified Carbon Standard under the name INFAPRO Rehabilitation of Logged-over Dipterocarp Forest in Sabah, Malaysia. That adds another level of market recognition and verification.
A Wider Model for Rainforest Recovery
Sabah INFAPRO also shows why high-quality nature-based projects are about more than carbon alone. The restoration effort supports broader ecological recovery in one of the world’s most important rainforest regions.
Climate Impact Partners said it has worked with project partners to restore degraded areas, run local training programs, carry out monthly forest patrols, and distribute seedlings to support rainforest recovery beyond the project boundary. These efforts help strengthen the wider landscape and expand the project’s environmental impact.
That broader value is becoming more important for buyers. Companies increasingly want projects that support biodiversity, ecosystem health, and local engagement, along with carbon removal. Sabah INFAPRO offers that mix, making it a stronger fit for the market’s shift toward higher-integrity credits.

The post Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia appeared first on Carbon Credits.
Carbon Footprint
Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story
Bitcoin’s recent drop below $70,000 reflects more than short-term market pressure. It signals a deeper shift. The world’s largest cryptocurrency is becoming increasingly tied to global energy markets.
For years, Bitcoin has moved mainly on investor sentiment, adoption trends, and regulation. Today, another force is shaping its direction: the cost of energy.
As oil prices rise and electricity markets tighten, Bitcoin is starting to behave less like a tech asset and more like an energy-dependent system. This shift is changing how investors, analysts, and policymakers understand crypto.
A Global Power Consumer: Inside Bitcoin’s Energy Use
Bitcoin depends on mining, a process that uses powerful computers to verify transactions. These machines run continuously and consume large amounts of electricity.
Data from the U.S. Energy Information Administration shows Bitcoin mining used between 67 and 240 terawatt-hours (TWh) of electricity in 2023, with a midpoint estimate of about 120 TWh.

Other estimates place consumption closer to 170 TWh per year in 2025. This accounts for roughly 0.5% of global electricity demand. Recently, as of February 2026, estimates see Bitcoin’s energy use reaching over 200 TWh per year.
That level of energy use is significant. Global electricity demand reached about 27,400 TWh in 2023. Bitcoin’s share may seem small, but it is comparable to the power use of mid-sized countries.
The network also requires steady power. Estimates suggest it draws around 10 gigawatts continuously, similar to several large power plants operating at full capacity. This constant demand makes energy costs central to Bitcoin’s economics.
When Oil Rises, Bitcoin Falls
Bitcoin mining is highly sensitive to electricity prices. Energy is the highest operating cost for miners. When power becomes more expensive, profit margins shrink.
Recent market movements show this link clearly. As oil prices rise and inflation concerns persist, energy costs have increased. At the same time, Bitcoin prices have weakened, falling below the $70,000 level.

This is not a coincidence. Studies show a direct relationship between Bitcoin prices, mining activity, and electricity use. When Bitcoin prices rise, more miners join the network, increasing energy demand. When energy costs rise, less efficient miners may shut down, reducing activity and adding selling pressure.
This creates a feedback loop between crypto and energy markets. Bitcoin is no longer driven only by demand and speculation. It is now influenced by the same forces that affect oil, gas, and power prices.
Cleaner Energy Use Is Growing, but Fossil Fuels Still Matter
Bitcoin’s environmental impact depends on its energy mix. This mix is improving, but it remains uneven.
A 2025 study from the Cambridge Centre for Alternative Finance found that 52.4% of Bitcoin mining now uses sustainable energy. This includes both renewable sources (42.6%) and nuclear power (9.8%). The share has risen significantly from about 37.6% in 2022.
Despite this progress, fossil fuels still account for a large portion of mining energy. Natural gas alone makes up about 38.2%, while coal continues to contribute a smaller share.

This reliance on fossil fuels keeps emissions high. Current estimates suggest Bitcoin produces more than 114 million tons of carbon dioxide each year. That puts it in line with emissions from some industrial sectors.
The shift toward cleaner energy is real, but it is not complete. The pace of change will play a key role in how Bitcoin fits into global climate goals.
Bitcoin’s Climate Debate Intensifies
Bitcoin’s growing energy demand has placed it at the center of ESG discussions. Its impact is often measured through three key areas:
- Total electricity use, which rivals that of entire countries.
- Carbon emissions are estimated at over 100 million tons of CO₂ annually.
- Energy intensity, with a single transaction using large amounts of power.

At the same time, the industry is evolving. Mining companies are adopting more efficient hardware and exploring new energy sources. Some operations use excess renewable power or capture waste energy, such as flare gas from oil fields.
These efforts show progress, but they do not fully address the concerns. The gap between Bitcoin’s energy use and its environmental impact remains a key issue for investors and regulators.
- MUST READ: Bitcoin Price Hits All-Time High Above $126K: ETFs, Market Drivers, and the Future of Digital Gold
Bitcoin Is Becoming Part of the Energy System
Bitcoin mining is now closely integrated with the broader energy system. Operators often choose locations based on access to cheap or excess electricity. This includes areas with strong renewable generation or underused energy resources.
This integration creates both opportunities and challenges. On one hand, mining can support energy systems by using power that might otherwise go to waste. It can also provide flexible demand that helps stabilize grids.
On the other hand, it can increase pressure on local electricity supplies and extend the use of fossil fuels if cleaner options are not available.
In the United States, Bitcoin mining could account for up to 2.3% of total electricity demand in certain scenarios. This highlights how quickly the sector is scaling and how closely it is tied to national energy systems.
Energy Markets Are Now Key to Bitcoin’s Future
Looking ahead, the connection between Bitcoin and energy is expected to grow stronger. The network’s computing power, or hash rate, continues to reach new highs, which typically leads to higher energy use.
Electricity will remain the main cost for miners. This means Bitcoin will continue to respond to changes in energy prices and supply conditions. At the same time, governments are starting to pay closer attention to crypto’s environmental impact, which could shape future regulations.

Some forecasts suggest Bitcoin’s energy use could rise sharply if adoption increases, potentially reaching up to 400 TWh in extreme scenarios. However, cleaner energy systems could reduce the carbon impact over time.
Bitcoin is no longer just a financial asset. It is also a large-scale energy consumer and a growing part of the global power system.
As a result, understanding Bitcoin now requires a broader view. Energy prices, electricity markets, and carbon trends are becoming just as important as market demand and investor sentiment.
The message is clear. As energy markets move, Bitcoin is likely to move with them.
The post Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story appeared first on Carbon Credits.
Carbon Footprint
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