Powering the future: How to meet global energy demand in the age of electricity

Electricity is becoming the backbone of modern economies as industries grow, cities expand and more sectors – such as transport, manufacturing and heating – shift to electric power.

According to the International Energy Agency (IEA), emerging markets will drive 85% of the increase in electricity demand by 2040 as higher living standards and industrial growth boost consumption.

This presents an opportunity and challenge: how can we rapidly scale electricity generation and distribution while keeping it reliable, affordable and sustainable?

More critically, are today’s demand projections significantly different from what we expected a decade ago? To answer these questions, we need a practical, flexible approach that blends existing infrastructure with scalable clean energy technologies.

No single technology can meet the growing demand for electricity while ensuring energy security. Instead, we need a mix of solutions – e.g. renewable energy, traditional power plants, energy storage and modernized grids – to provide a stable and secure supply.

Additionally, geopolitical competition for energy security, especially in the digital economy, underscores why building resilient and adaptable electricity systems is so important.

With artificial intelligence and automation advancing rapidly, we must speed up infrastructure development, as energy planning often struggles to keep up with technological progress.

Traditionally, energy infrastructure has been framed around three factors: sustainability, affordability, and reliability.

However, availability is now emerging as a decisive fourth factor. Quick access to new generation capacity has a different value for fast-moving industries, such as data centres.

Infrastructure and regulatory frameworks must evolve to match the pace of demand growth.

In the immediate term, optimizing the current energy system is the fastest and most cost-effective way to enhance security and reliability. Key measures include:

In the medium term, scaling renewable energy is essential to meet the steep rise in electricity demand. Proven technologies such as wind and solar are crucial for a resilient power supply but integration challenges must be addressed:

In the longer term, beyond 2030, a mix of established and emerging technologies will play a role in ensuring stable, low-carbon electricity supply:

Rapid deployment depends on reducing the cost of capital. In 2024 alone, global investment in energy infrastructure surpassed $3 trillion, with two-thirds directed toward clean technologies. To scale investment further, three critical areas must be addressed:

The electrification of economies is one of the most significant transformations of our time. Industry must deliver scalable solutions, governments must ensure stable regulatory frameworks and financial institutions must mobilize capital effectively.

A well-structured energy transition is not just an environmental necessity – it is a strategic opportunity to create a more resilient, affordable and secure global energy system.

To realize this future, we must adopt a pragmatic and systemic approach.