Global Energy Overview 2023 

Global electricity demand growth experienced a slowdown in 2022, but it is projected to accelerate starting from 2023, primarily driven by Asia. The energy crisis triggered by Russia's invasion of Ukraine resulted in soaring commodity prices, reduced economic growth, and high inflation. Escalating fuel costs led to increased expenses in electricity generation worldwide, which in turn dampened consumption in many regions. Despite the worsening crisis, global electricity demand remained relatively resilient, achieving a growth rate of nearly 2% in 2022.

By 2025, Asia is anticipated to account for half of the world's electricity consumption, with China alone representing one-third of global electricity usage. Over the forecast period, global electricity demand is expected to grow at an accelerated pace, with an annualized rate of 3%, driven by emerging markets and developing economies (EMDEs), prominently including China, India, and Southeast Asia.

As the energy crisis gradually subsides, global electricity demand growth is poised to rise from 2.6% in 2023 to an average of 3.2% in the years 2024-2025. This stronger growth rate surpasses the pre-pandemic level of 2.4% witnessed during the 2015-2019 period. In fact, by 2025, electricity demand is projected to increase by 2,500 terawatt-hours (TWh) compared to 2022 levels, which is roughly equivalent to the combined electricity consumption of the United Kingdom and Germany.

​China is expected to account for more than half of this increase, while the remaining growth will predominantly occur in India and Southeast Asia. China experienced subdued electricity demand growth of approximately 2.6% in 2022 due to weaker economic activity, significantly below its trend of 5.4% observed during 2015-2019. As the world's largest electricity consumer, China represented 31% of global demand in 2022. For the years 2023-2025, an average annual growth rate of 5.2% is projected for China.

In India, robust post-pandemic recovery contributed to strong electricity demand, which exceeded 8.4% in 2022, significantly surpassing the average annual growth rate of 5.3% witnessed during 2015-2019. Additionally, an early arrival of the peak summer season in 2022 resulted in the hottest March in over a century, leading to a 12% increase in electricity demand from March to July compared to the same period in 2021. For the period of 2023-2025, slightly slower growth is expected, averaging 5.6% per year.

Electricity demand in the European Union (EU) declined by 3.5% in 2022, primarily influenced by surging electricity prices, reduced demand in energy-intensive industries, energy-saving measures, and a mild winter. It is anticipated that EU demand will experience an average growth of approximately 1.4% during the years 2023-2025.

In the United States, electricity demand rebounded by 2.6% in 2022, surpassing pre-Covid levels. However, an anticipated economic slowdown in 2023 is projected to result in a decline of approximately 0.6% before returning to growth rates of 1.2% in 2024 and 1.3% in 2025.
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In Africa, electricity demand increased by 1.5% in 2022, with growth curtailed by high energy prices and inflation rates. The outlook for the region during 2023-2025 indicates significantly stronger growth, averaging around 4.1% annually, driven by post-crisis economic recovery.

In conclusion, global electricity demand is set to rebound and accelerate following a temporary slowdown in 2022 due to the energy crisis. Led by Asia, particularly China, emerging markets, and developing economies, the world's electricity consumption is projected to grow at an annualized rate of 3% over the forecast period. Despite the challenges posed by high commodity prices and weaker economic growth, global electricity demand remained resilient in 2022, and it is expected to surpass pre-pandemic levels. As the energy crisis subsides, countries like China, India, and Southeast Asia will drive the growth, while regions such as Europe and the United States will experience varying demand patterns. The outlook for Africa shows promising growth as post-crisis economic recovery fuels increased electricity consumption. It is crucial for countries to prepare for this accelerated growth and focus on sustainable and efficient energy solutions to meet the rising demand.
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Changes in emissions of power generation, 2021-2025