Electric surge to require flexible power systems: IEA

Paris. Demand for electricity is set to explode in the next two decades, which could be good news for the environment but a challenge for governments and power companies, the International Energy Agency (IEA) has said.

“The electricity sector is experiencing its most dramatic transformation since its creation more than a century ago,” said the IEA in an annual energy outlook that focused on electricity. The IEA forecast that energy demand would be more than 25 per cent greater by 2040.

Global demand for electricity is expected to surge by around 60 per cent, at which point it would account for about one quarter of the total, from 19 per cent at present, while coal and oil diminish in importance.

Developing economies will need 90 percent more electricity, for vehicles in China and air conditioning in hotter climates, said the report. Rich countries were also tipped to require more power for electrically based transit systems.

The use of wind turbines and solar panels would grow substantially, said the report. All renewable sources including hydro-electric are to account for 70 per cent of the increased output.

Meanwhile, the share of electricity produced by coal should drop to about one quarter of the total from roughly 40 per cent today. (AFP)