The 4% increase in energy demand expected in 2024 is the highest since 2007., except for two years, the International Energy Agency notes in a report. In 2010, there was a sharp rebound after the global financial crisis. A similar situation occurred in 2021, after the collapse in demand caused by Covid. The agency attributes the increase in energy demand to global warming and economic growth.
The gap will be partially filled by renewable energy
The International Energy Agency report also touches on the subject of renewable energy. As we read in the report, By 2025, solar panels alone are likely to cover about half of the growth world demand for electricity. Together with production wind energy will account for almost 75 percent of the increase.
What drives energy demand
According to the agency, in the coming years, the energy sector will play an important role in driving energy demand. play artificial intelligence. However, in the case of AI, predicting the future is difficult because there is no reliable historical data on data center energy consumption. Furthermore, there is a very wide range of uncertainty related to the pace of implementation of new technology, which makes predictions even more difficult.
Forecasts indicate that Data centers will consume between 4% and 10% of total electricity by 2030. The IEA’s own forecasts predict that energy consumption from data centers, excluding cryptocurrencies, will increase to around 1.5% to 3% in 2026, with approximately 1-1.3 percent of global electricity demand in 2022.
Climate change also has a major impact on the increase in energy demand. May 2024 was the 12th consecutive month of record temperatures on Earth, and this is probably not the last record month this year. The next heat waves will continue to increase electricity consumption, because the demand for cooling equipment is growing rapidly.
