China Leading the Shift to an 'Age of Electricity,' IEA Reports

The energy market is transitioning to an "age of electricity," led by China, according to the International Energy Agency (IEA). Global electricity demand is expected to nearly double by 2050, driven by China's rapid adoption of electric vehicles, increased cooling needs, and data center expansion. China is responsible for two-thirds of this growth.

Clean energy is replacing fossil fuels, but the speed of this transition raises concerns about meeting emission reduction targets. Low-emission energy output increased by 4,800 terawatt-hours (tWh) from 2010 to 2023, while electricity generation surged by 8,400 tWh. China's role is crucial; its clean energy capacity accounts for 60% of global additions in 2023.

Despite this, China remains the largest coal consumer, expected to account for over half of global demand by 2035. India and Southeast Asia also heavily rely on coal, though their clean power generation is growing.

Asia is now the focal point of global oil and gas trade, with China poised to overtake the U.S. as the largest oil consumer by 2030. Electric vehicle (EV) sales are surging, particularly in China, where nearly 70% of new car sales could be electric by 2030.

The IEA warns of "perilous times" in energy security due to conflicts in the Middle East and Ukraine. A special summit on energy security is planned for London in 2025.

Key Terms:

• Terawatt-hours (tWh): A unit of energy equal to one trillion watt-hours.
• Low-emission energy: Energy sources that produce minimal greenhouse gas emissions, such as solar and wind power.
• Carbon intensity targets: Goals set by countries to reduce the amount of carbon dioxide emitted per unit of economic activity.