Abstract:

Electricity is central to many parts of life in modern societies and will become even more so as its role in transport and heating expands through technologies such as electric vehicles and heat pumps. Power generation is currently the largest source of carbon dioxide (CO2) emissions globally, but it is also the sector that is leading the transition to net zero emissions through the rapid ramping up of renewables such as solar and wind. At the same time, the current global energy crisis has placed electricity security and affordability high on the political agenda in many countries. The International Energy Agency’s Electricity Market Report 2023 offers a deep analysis of recent policies, trends and market developments. It also provides forecasts through 2025 for electricity demand, supply and CO2 emissions – with a detailed study of the evolving generation mix. This year’s report contains a comprehensive analysis of developments in Europe, which faced a variety of energy crises in 2022. The Asia Pacific region also receives special focus, with its fast-growing electricity demand and accelerating clean energy deployment.