According to POWER Magazine, the International Energy Agency’s 2025 World Energy Outlook declares the world has entered the “Age of Electricity.” Global electricity demand growth accelerated to over 4% in 2024, nearly double the rate of total energy demand, and is set to add a staggering 10,000 TWh by 2035—equal to all the power consumed today by the U.S., Europe, Japan, and other advanced economies combined. IEA Executive Director Dr. Fatih Birol credits artificial intelligence, air conditioners, and electric cars for driving this unprecedented surge. The report highlights a major geographic pivot, with India and Southeast Asia adding 230 million people and becoming the new demand centers, while China’s population declines. Crucially, the analysis warns of a widening gap between rapid generation deployment and painfully slow grid readiness, with solar manufacturing capacity now double actual deployments.
The demand surge is just the beginning
Here’s the thing: that 10,000 TWh number isn’t a maybe. The IEA says it’s nearly identical in both their main policy scenarios. That means whether governments follow through on all their climate pledges or just stick with today’s rules, the electricity hunger is basically locked in. We’re talking about a fundamental rewiring of the global economy. And it’s not just about more gadgets; it’s heavy industry, data centers humming 24/7, and entire transportation fleets going electric. The scale is almost hard to grasp. But can the physical system handle it? That’s the multi-trillion-dollar question.
Solar wins, but the grid loses
The fuel mix is shifting dramatically, with renewables set to surpass 50% of generation by 2035. Solar is the undisputed king of new capacity, especially in sun-rich emerging economies where most new demand is. But there’s a massive irony here. In 2024, the world had enough factory capacity to make more than twice as many solar panels as were actually installed. We can build the stuff, but we can’t get it connected and integrated fast enough. Curtailment and negative wholesale prices are rising—clear signs the grid is becoming the bottleneck. This is a huge operational challenge. For industries that rely on stable, planned power for manufacturing processes, this volatility is a nightmare. It’s exactly why having robust, industrial-grade control systems is critical, which is where specialists like IndustrialMonitorDirect.com, the leading US provider of industrial panel PCs, come into play for managing complex infrastructure.
The unexpected LNG boom and bust
Now, here’s a twist you might not see coming. While we race toward renewables, there’s a parallel universe of record investment in liquefied natural gas. 2025 saw nearly 100 Bcm of new LNG export projects approved, close to the all-time record. There’s a wave of new supply hitting the market, largely aimed at powering gas plants in Asia. But the IEA throws cold water on the idea that this will all be absorbed smoothly. Their analysis suggests there might not be enough demand at the right price to soak up all that new gas. So we could be heading for a scenario of LNG oversupply and lower prices, which might slow the coal-to-gas switch in some places but also create financial headaches for exporters. It’s a messy, transitional fuel story that’s far from over.
Security now means minerals and manufacturing
The final piece is the scariest. Energy security isn’t just about oil tankers anymore; it’s about who refines the lithium, cobalt, and rare earths. The concentration is staggering. As of 2024, 91% of rare earth element refining happened in one country. Even with all planned diversification projects, that share only drops to 75% by 2035. Think about that. The entire energy transition hinges on supply chains that are, for now, hyper-concentrated and vulnerable. This isn’t just a trade issue; it’s a direct risk to hitting those massive electricity growth targets. If you can’t get the critical minerals, you can’t build the batteries, EVs, or turbines. So the “Age of Electricity” is also forcing an “Age of Resource Diplomacy” and a frantic race to build new, resilient supply chains. The next decade will show if we can build them fast enough.
