Global Electricity Enters Structural Optimization Phase
Global electricity systems are undergoing a historic transformation, with demand reaching approximately 29.6 trillion kilowatt-hours in 2025 — a year-on-year increase of about 4 percent — according to a new report released at the United Nations headquarters in New York. The Global Electricity Development Index (2026), published by the Global Energy Interconnection Development and Cooperation Organization (GEIDCO), evaluates electricity development across 100 countries using four dimensions: supply security, consumption services, green and low-carbon development, and technological innovation.
A Sector at a Critical Crossroads
The report, released during the UN High-Level Political Forum on Sustainable Development, marks the second edition of GEIDCO’s flagship electricity research — following the inaugural 2024 index. It arrives at a moment when the global power sector faces unprecedented pressures: clean energy is expanding rapidly while geopolitical conflicts intensify, extreme climate events become more frequent, and energy supply chain risks continue to rise.
According to the People’s Daily, the report finds that global electricity has entered a new phase of structural optimization and quality improvement. The 4 percent demand growth in 2025 significantly exceeds the average annual growth rate since 2015, signaling accelerating electrification across economies worldwide.
New Demand Drivers Reshape Consumption
Three emerging sectors are driving global electricity demand growth, according to the report. Electric vehicles led the charge, with approximately 60 million EVs on the road globally in 2025 consuming over 200 billion kWh annually. The International Energy Agency projects this demand will reach 780 billion kWh by 2030.
Data centers and artificial intelligence represent a second major growth engine. Global data center electricity consumption approached 500 billion kWh in 2025, with double-digit growth rates driven by large language model training and inference workloads. This figure is projected to rise to 945 billion kWh by 2030.
A third driver comes from green hydrogen production and electric heating applications, which are accelerating electrification in industrial heating and chemical production processes.
Persistent Development Gaps
Despite rapid global growth, the report highlights stark regional disparities. Asia’s overall electrification rate exceeds 25 percent, and Northern Europe surpasses 30 percent, but Africa’s electrification rate stands at just 12.6 percent — roughly half the global average. The per capita gap is even more dramatic: Iceland’s annual per capita electricity consumption exceeds 52,000 kWh, while Uganda’s is just 120 kWh — a difference of more than 400 times. Africa’s overall electricity access rate remains below 60 percent.
UN Under-Secretary-General Li Junhua emphasized at the report’s release that energy is the foundation of sustainable development, calling on countries to accelerate energy technology innovation and grid interconnection while providing policy and technical assistance to developing nations.
Clean Energy Expansion Accelerates
The report documents remarkable growth in clean energy capacity. Global new energy installed capacity exceeded 3.95 billion kW in 2025, accounting for nearly 40 percent of total global power capacity. Solar and wind project costs have fallen by over 90 percent in the past decade, making them the most competitive new energy sources in most regions.
According to the latest data from the International Renewable Energy Agency, global renewable energy additions — including hydro — reached approximately 690 million kW in 2025, a new record and seven times the 2015 growth level. Total renewable capacity reached 5.15 billion kW by the end of 2025, approaching half of global capacity. Solar power alone added 510 million kW, representing 75 percent of renewable additions, while wind power contributed 160 million kW, up 14 percent year-on-year.
Damilola Ogunbiyi, Special Representative of the UN Secretary-General for Sustainable Energy for All, noted that over 90 percent of new renewable energy projects now cost less than new fossil fuel power plants. “Renewable energy deployment is faster, has lower operating costs, and is more resilient,” she said, adding that this transformation provides important opportunities for economic growth in developing countries.
The 21st Century Business Herald reported that the top five countries in comprehensive electricity development are Finland, Sweden, Switzerland, China, and Norway. China ranks first globally in electricity technology innovation and leads in clean energy installed capacity and digital-intelligent power technology applications.
The Technology Divide
Innovation and digitalization are emerging as key battlegrounds in the new phase of electricity development. The report identifies the United States, China, and Germany as global leaders in power technology innovation. However, many developing countries face significant digitalization gaps. Africa and Central/South America scored only 67.6 and 67.0 respectively on the technology innovation index — more than 20 points behind North America.
Former UN Economic and Social Council President Lock Tapa warned that the current global energy access gap is enormous and energy system vulnerabilities are prominent. He called for increased investment in green energy infrastructure in developing countries and the promotion of technology sharing to build a resilient and inclusive global energy transition path.
Artificial intelligence is already transforming power grid operations. AI-based grid dispatch systems can significantly compress real-time dispatch optimization cycles under high renewable energy penetration, while fault detection accuracy at key points exceeds 99.5 percent. These advances are shifting grid operations from experience-driven to data-driven approaches.
China’s Leadership Role
GEIDCO, the first international organization in the energy sector initiated by China, has grown to include 1,450 member organizations across 145 countries since its founding in March 2016. The organization’s chairman, Xin Baoan, framed the Global Energy Interconnection as a systematic solution for implementing the Global Development Initiative and promoting energy transformation.
China’s Permanent Representative to the UN, Fu Cong, outlined four priorities for accelerating the global energy transition: strengthening technological support and deepening technical cooperation, promoting technology application for inclusive empowerment, cultivating green production and lifestyles, and improving global energy governance to safeguard energy security.
Looking Ahead
The GEIDCO report serves as a standardized analytical tool for countries to assess global electricity transition trends, narrow development gaps, and balance energy security with green and low-carbon transformation. As the world moves toward net-zero targets, the report’s findings underscore both the remarkable progress and the substantial challenges that remain in building a just and inclusive global energy system.
The path forward will require sustained international cooperation, technology transfer to developing nations, and continued investment in grid modernization and clean energy infrastructure. As the report makes clear, the global electricity sector is not merely growing — it is being fundamentally restructured for a new energy era.