Global Electricity Trends

Data on the global electricity sector in 2022

An overview of long term trends and the world’s progress towards net zero.

Global Electricity Generation

The global electricity generation mix is still dominated by fossil fuels, which provided 61% of electricity generation in 2022. Coal accounted for 36% (10,186 TWh), fossil gas for 22% (6,336 TWh) and other fossils for 3% (850 TWh) of global generation. Hydro remained the largest clean electricity source at 15% (4,311 TWh), and nuclear the second largest source contributing just over 9% (2,611 TWh). Wind and solar together reached a 12% share of global electricity (3,444 TWh), with wind at 7.6% (2,160 TWh) and solar at 4.5% (1,284 TWh). Bioenergy generated 2.4% (672 TWh) of global electricity, and other renewables 0.4%.

Change in 2022

The most significant change in electricity generation in 2022 was the record year-on-year growth of solar and wind, rising by 245 TWh (+24%) and 312 TWh (+17%) respectively. 2022 also saw a historic fall in nuclear generation, with a decrease of 4.7% (-129 TWh) compared to the previous year. The fall was largely in the EU, which was affected by maintenance issues in France as well as plant closures in Germany and Belgium. Nuclear also fell significantly in Japan (-9.5 TWh) due to planned maintenance. Global hydro generation increased by 1.7% (+73 TWh), despite significant falls due to heatwaves in the EU and some other countries. In the context of volatile gas prices and security of supply concerns resulting from Russia’s invasion of Ukraine, global gas generation remained almost flat, decreasing slightly by 0.2% (-12.3 TWh). Coal rose by 1.1% (+108 TWh).

These changes led to the global electricity mix shifting in favour of wind and solar. Combined, wind and solar provided 12% of global generation, up from 10% in 2021. Other clean electricity sources fell, with nuclear experiencing the largest share reduction (-0.7 percentage points), while hydro fell by 0.1 percentage points and bioenergy by 0.04 percentage points. Coal’s share in the electricity mix fell slightly (-0.5 percentage points) to 35.7%. Similarly, gas share fell by 0.6 percentage points to 22.2%. In contrast, other fossil generation increased by 86 TWh, increasing its market share from 2.8% to 3%.

Long term trend

The world’s reliance on fossil power has declined only slightly in the past two decades, from 64% in 2000 to 61% in 2022. During that time, coal generation grew in absolute terms from 5,719 TWh in 2000 to 10,186 TWh in 2022, even while its share of generation dropped from 38% in 2000 to 36% in 2022. Gas generation has increased by four percentage points since 2000 to account for 22% of global electricity in 2022. Other fossil fuels fell from 7.8% of generation to 3% over the same period.

In 2000, wind and solar accounted for almost no generation, growing over the past two decades to reach 12% in 2022. Solar has made a sprint start, as the fastest growing source of electricity for the last 18 years, closely followed by wind power. In comparison, other forms of low-carbon electricity have not been on a rapid growth trajectory. Bioenergy increased its share slightly over the same period, while hydro and nuclear fell in the global mix. Nuclear’s share reduced the most, going from 17% of global electricity in 2000 to just 9.2% in 2022.

Since 2015, the year of the Paris Agreement, solar’s share of global electricity has quadrupled, rising from 1.1% in 2015 to 4.5% in 2022. Wind’s share more than doubled in the same period, from 3.5% in 2015 to 7.6% in 2022. Bioenergy generation rose only slightly in the global mix (+0.3 percentage points) while the shares of the other sources fell: coal from 39% in 2015 to 36% in 2022, gas from 23% to 22%, other fossil from 4.3% to 3%, nuclear from 11% to 9.2% and hydro from 17% to 15%.

Progress towards net zero

There is universal agreement that the global electricity sector must be decarbonised for the world to keep global heating below 1.5C. This can be achieved in a number of ways. According to the IEA Net Zero Emissions scenario, unabated coal plants must be phased out by 2035 in mature economies, and by 2040 in developing ones. Unabated gas (gas without carbon capture and storage) will produce only 5% (13 TWh) of the overall world’s generation in 2035 and will have to be phased out by 2040. Wind and solar will form the backbone of global electricity generation, providing almost 70% of the world’s electricity by 2050. By this time, nearly 90% of electricity will be produced by renewables. More detail on each electricity source can be found in chapter 5.

Impressive growth in wind and solar shows a glimpse of the future clean electricity system, but continued–if slowing–growth in fossil fuels is still holding back progress for a pathway aligned with 1.5C. According to the IEA, coal needs to fall by 8.3% annually between 2021 and 2030 and gas generation by 3% annually in the same period. Coal increased in 2022 while gas fell only slightly, but this may be the final year of fossil growth and the peak of power sector emissions (see chapter 3). In contrast, solar grew by 24% in 2022, close to the required annual rate between 2021 and 2030 of 25%, while wind saw the required rate of 17% in 2022. However, their growth is still from a relatively small base. Maintaining such high growth rates year-on-year will become harder as industries mature. 

Other clean sources also need to increase their generation. Nuclear generation needs to rise by 3.8% annually, but it fell by 4.7% in 2022. Hydro must increase by 3.2%, but it grew only about half of the required rate. The IEA pathway sees bioenergy growing by 7.6% annually between 2021 and 2030, nine times faster than it did in 2022. However, pathways without bioenergy may be preferable given the emissions risks (see chapter 5).

It is clear that by 2030, the global power system will be unrecognisable from a decade ago: electricity will be cleaner, less dependent on fossil imports, and it will be relied on more for transport and heating. The 2020s are the decade of implementation. The task is herculean, but a 1.5 degree pathway is still possible. 

Global Electricity Demand

Global electricity demand hit a record new high of 28,510 TWh in 2022. Major economies were responsible for the bulk of this demand: China for 8,840 TWh (31%), United States for 4,335 TWh (15%), the EU for 2,794 TWh (10%), India for 1,836 TWh (6%), Russia for 1,102 TWh (4%) and Japan for 968 TWh (3%). On average worldwide, the per capita demand was 3.6 MWh in 2022, with some major countries above the global per capita average (United States 13 MWh, South Korea 12 MWh, China 6.2 MWh, EU 6.3 MWh) and others far below (Bangladesh 0.6 MWh, India 1.3 MWh).

Electricity accounted for around 20% of final energy consumption in 2021. The power sector is the fastest-growing source of final energy demand, set to increase substantially as the world tackles the climate crisis by increasing electrification, alongside a growing population and improvements to standard of living. According to different scenarios, electricity’s share of final energy consumption may increase to between 30% and over 50% by 2050. 

Estimates vary on how much electricity demand will grow by 2050. Some of the most respected estimates are given in the Stated Policies Scenario (STEPS), Announced Pledges Scenario (APS) and Net Zero Emissions Scenario by 2050 by the IEA. Global electricity demand in 2050 is over 75% higher in the STEPS than it was in 2022, 120% higher in the APS and 150% higher in the Net Zero Emissions by 2050 Scenario. It is clear that higher ambition scenarios that rebuild the energy system around clean electricity will require far higher electricity demand than the current trajectory.

Change in 2022

Global electricity demand increased by 694 TWh (+2.5%) in 2022, reaching 28,510 TWh, up from 27,816 TWh in 2021. Such an increase is broadly in line with the average historical demand growth for 2010-2021 of 2.6% and the average 2.7% demand growth since the Paris Agreement in 2015.

Wind and solar met 80% of demand growth in 2022, while all renewables together (wind, solar, hydro, bioenergy and other renewables) met 92% of the increase in demand. An increase in coal generation (+108 TWh) met the remaining increase in demand (8%) as well as the shortfall in nuclear and gas generation. Other fossil fuels also rose to cover the remaining shortfall (+86 TWh). 

The growth in demand was not uniform across the world. China accounted for 54% of the global rise in demand; the US accounted for 21% and India accounted for 18% of global demand increase. In contrast, electricity demand fell in the EU by 87 TWh (-3%).

Long term trend

Since 2000, global electricity demand has almost doubled, increasing from 14,972 TWh in 2000 to 28,510 in 2022. Much of this increase was driven by demand increase in major growing economies. China particularly so, where electricity generation grew by more than six and half times in the last two decades, from 1,347 TWh in 2000 to 8,840 TWh in 2022. In India, demand has more than tripled in the last two decades from just 573 TWh in 2000 to 1,836 TWh in 2022. The majority of the increase in the global demand was met by coal, which led to an almost doubling of global coal generation. Other major economies where demand has been increasing include the US, Russia and Indonesia.

Since 2015, the year of the Paris Agreement, global demand has increased from 23,660 TWh to 28,510 TWh in 2022, an average 2.7% per year.

Progress towards net zero

Growth in electricity demand is a central part of any pathway to net zero, as clean electrification helps reduce emissions across sectors like transport, heating and industry. In the IEA Net Zero Emissions scenario, electricity demand grows by 3.2% annually between 2021 and 2030, a rise from the average annual growth of 2.7% between 2015-2022.

Electrification increases the demand for electricity, but energy efficiency will also help to suppress the demand rises. Preventing runaway electricity demand growth is critical to meeting climate targets. The world is not yet in an era of unlimited clean electricity.

Global Power Sector Emissions

The power sector is the biggest emitter from all sectors, responsible for about 40% of total global energy-related CO2 emissions. In 2022, emissions from electricity generation increased to 12,431 million tonnes of CO2, reaching a new all-time high. To limit global heating to 1.5C, they should instead be falling fast. The top 10 absolute CO2 emitters are responsible for generating 80% of global power sector emissions: China, US, India, EU, Japan, Russia, South Korea, Saudi Arabia, Indonesia and Iran.

The biggest emitters per capita are Bahrain, Qatar, Kuwait, Taiwan, United Arab Emirates, Saudi Arabia, South Korea, Kosovo, Australia and the US. Although global emissions intensity of electricity fell over recent years and currently stands at 436 gCO2/kWh, its lowest ever level, the global electricity emissions per capita has increased by 39% since 2000 to 1.57 tCO2.

Change in 2022

Global electricity emissions increased by 160 million tonnes of CO2 (+1.3%), reaching 12,431 mtCO2 in 2022. It was a smaller increase than in 2021 when emissions saw a record rebound due to the economic recovery from Covid-19 (+797 mtCO2, +7% year-on-year). Emissions intensity decreased slightly from 441 gCO2/kWh in 2021 to 436 gCO2/kWh in 2022, while emissions per capita increased from 1.55 tCO2 to 1.57 tCO2 per capita.

Emissions grew in China (+76 mtCO2) and India (+70 mtCO2) as demand growth was met in part by coal power. In Europe, shortfalls in nuclear and hydro were met in part by coal power, increasing emissions in Germany (+12 mtCO2) and Spain (+9.4 mtCO2). In the US, emissions rose (+4.6 mtCO2) as a rise in demand was partly covered by gas. In Mexico, emissions rose (+13 mtCO2) as the demand rise was largely met by coal and oil.

The biggest absolute drops in emissions were seen where clean generation increased beyond rising demand, including Brazil (-36 mtCO2), Chile (-6.3 mtCO2), Australia (-4.6 mtCO2) and Viet Nam (-10.5 mtCO2). In Ukraine, emissions fell (-14 mtCO2) due to the wartime decrease in electricity demand.

Long term trend

Since 2000, absolute power sector emissions have almost doubled, rising from 6,972 mtCO2 in 2000 to 12,431 mtCO2 in 2022. This equates to an average annual increase of 2.7%. Rapid economic growth across many regions has driven this increase, as global electricity demand has risen while the world maintains significant dependence on fossil fuels. China’s growth is a large part of this, as its electricity generation increased by 6.5 times, from 1,356 TWh in 2000 to 8,858 TWh in 2022. This is nearly a third of the global generation, and has led to growth in China’s absolute emissions of 415% (+3,782 mtCO2) from 2000 to 2022. 

The rise in emissions over the last two decades has been relatively steady year-on-year, with exceptions in 2009, 2015, 2019 and 2020 when emissions fell. In 2009 emissions decreased by 118 mtCO2 (-1.3%) as the result of the economic recession, leading to lower demand as well as an increase in renewable electricity sources. In 2015, the year of the Paris Agreement, emissions and economic growth had decoupled and emissions fell by 101 million tonnes of CO2 as major economies China and the US lowered their emissions by deploying more clean power sources. In 2019, slower economic growth and relatively mild weather conditions in major economies slowed the rise in demand, which was met entirely by clean sources. This led to emissions falling by 127 mtCO2 (-1.1%). In 2020, the impacts of the Covid-19 pandemic led to reduced economic activities, with global emissions falling by 346 mtCO2 (-2.9%) as a result. 

Global emissions intensity of electricity decreased by just 6% between 2000 and 2022, while demand per capita increased by 48%.

Since 2015, the year of the Paris Agreement, emissions have increased from 11,161 mtCO2 to 12,431 mtCO2, which is equivalent to an average annual rise of 1.6%.

Progress towards net zero

To align with the IEA Net Zero Emissions scenario, advanced economies must decarbonise their electricity generation by 2035 and the rest of the world by 2040. 

We are not yet seeing the declines needed for those milestones, which require emissions from the power sector to fall by more than 7% per year from 2021 to 2030 and a completely decarbonised power sector by 2040. However, 2022 may be the peak of power sector emissions (see chapter 3). How fast emissions then decline will depend on wind and solar continuing their meteoric growth. There are certainly positive signs as major economies like the G7 continue substantial investment programs to achieve their commitments to clean power by 2035, and more countries recognise the benefits of wind and solar for clean, secure and affordable energy.