2026 marks a historic turning point for the global power industry. According to the International Energy Agency (IEA), the world has officially entered the “Age of Electricity”, with electricity becoming the core driver of global economic development.

1. Robust Growth in Electricity Demand

Global electricity demand is projected to grow by 3.7% in 2026, continuing the 3.3% growth seen in 2025 and remaining one of the fastest rates in over a decade. Total global electricity consumption is expected to exceed 29,000 TWh, a record high. For the first time in three decades (outside of crisis periods), electricity demand growth is outpacing economic growth, signalling a structural shift.

Regionally, emerging economies contribute about 60% of the growth. China’s demand growth is forecast at 5.7% in 2026, and India’s at 6.6%. China will account for nearly 50% of global electricity demand growth going forward. The United States, driven by rapid data centre expansion, sees annual demand growth of about 2%. The IEA expects global electricity demand to grow at an average annual rate of 3.6% through 2030, with emerging economies contributing nearly 80% of new demand.

2. Historic Shift in Generation Mix

In 2026, renewable generation surpasses coal for the first time to become the world’s largest source of electricity. Coal’s share of total generation falls to about 32%, dropping below 33% for the first time in a century. The combined share of solar and wind rises from 15% in 2024 to nearly 20% in 2026 – a roughly fivefold increase over the past decade. Nuclear power reaches a record high and continues to grow, with an average annual growth rate of nearly 2%. Natural gas generation is expected to grow by 1.3%. The IEA forecasts that by 2030, renewables and nuclear together will account for 50% of global electricity supply, up from 42% today.

3. Investment Shifts to Grids and Storage

IEA data show that global investment in electricity supply and infrastructure will reach USD 1.6 trillion in 2026; including enduse electrification, the total exceeds USD 2 trillion. Grid investment is growing particularly rapidly, reaching an estimated USD 550 billion in 2026 – nearly 20% higher than in 2025. Battery storage investment for power systems will exceed USD 100 billion. Lowcarbon technologies (renewables and nuclear) account for over 70% of total generation investment. Global energy transition investment reached a record USD 2.3 trillion in 2025, up 8% yearonyear.

4. Challenges and Outlook

Despite strong momentum, the global power industry faces challenges such as grid infrastructure lagging behind generation, insufficient system flexibility, and electricity price volatility. Currently, over 2,500 GW of projects are awaiting grid connection, requiring a 50% increase in grid investment to meet demand.

In summary, the 2026 global power industry is characterised by robust demand growth, accelerated cleanenergy transition, and a clear investment shift toward grids and storage. Power sector carbon emissions are expected to plateau and then begin to decline, though the transformation will require coordinated efforts across multiple dimensions.