The International Energy Agency (IEA) report Electrification, published on 22 September 2026, explains how electricity is becoming increasingly important in the global energy system and how accelerating electrification can support economic growth, energy security and climate goals.

Global electricity demand has grown more than twice as fast as overall energy demand since 2019. Major drivers include electric vehicles, heat pumps, air conditioning, industrial production, data centres and artificial intelligence.

Electric technologies are generally more efficient than conventional fossil-fuel alternatives. For example, electric vehicles are 2–4 times more efficient than combustion-engine vehicles, while heat pumps can deliver 3–5 units of heat per unit of electricity consumed.

There is substantial potential for further electrification. Transport, buildings and industry can all increase their use of electricity. Key technologies include:

• Electric vehicles in transport.
• Heat pumps and induction cooking in buildings.
• Electric heating and machinery in industry.

Electrification can significantly reduce emissions and improve energy security when combined with renewable electricity generation . Countries can reduce their dependence on imported oil, gas and coal.

However, achieving these benefits requires:

• Expansion of electricity generation, particularly renewables.
• Modernisation and expansion of electricity grids.
• Investment in electrification technologies.
• Policies that make electric technologies affordable and accessible.

Electrification requires substantial upfront investment in infrastructure and equipment. However, lower operating costs can reduce household energy bills and industrial energy expenses over time.

Tools: ChatGPT was used to summarize the contents of the webpage below.

Source: https://www.iea.org/reports/electrification