Abstract:

The report examines the accelerating shift towards an “Age of Electricity”, driven by electric vehicles, heat pumps, cooling, industrial electrification, data centres and artificial intelligence. Electricity demand grew more than twice as fast as overall energy demand between 2015 and 2025, highlighting its increasing importance across economies and energy systems. The report assesses the potential for further electrification across transport, buildings and industry, identifying significant cost-competitive opportunities using existing technologies. Under the High Electrification Scenario, global electrification could reach 35% by 2035, supported by expanded deployment of electric technologies and low-emissions electricity generation. Electrification can improve energy efficiency, reduce fossil-fuel imports and lower energy-sector emissions, while requiring substantial investment in generation, grids and end-use technologies. The report also highlights challenges related to affordability, infrastructure, financing, critical-mineral supply chains and the need for rapid expansion of low-emissions electricity.