Global Electricity Trends

In 2023, fossil sources such as coal and gas produced 61% of global electricity. Coal was the single largest fuel, making up 35% (10,434 TWh) of global generation. Gas produced 23% (6,634 TWh) and other fossil generation made up 2.7% (786 TWh). 

In 2023, renewables reached 30% of global electricity generation for the first time. Hydro remained the largest low-carbon source of electricity at 14% (4,210 TWh). With 9.1% coming from nuclear power (2,686 TWh), clean generation made up 39% of the global electricity mix. Wind produced 7.8% (2,304 TWh) and solar produced 5.5% (1,631 TWh). Together, solar and wind generated 13.4% (3,935 TWh). Bioenergy produced a reported 2.4% (697 TWh), but actual generation is likely to be higher due to its use in off-grid generation. Lastly, other renewables generated 0.3% (90 TWh). This was mostly geothermal generation, with tidal and wave energy providing only a small portion.

The share of fossil generation peaked at 68% in 2007 and has since declined to 61% due to fossil fuels growing at a slower rate than global electricity demand.

While the share of fossil sources in the global electricity mix is declining, fossil generation is still rising in absolute terms, with both coal and gas reaching record levels in 2023. Coal generation nearly doubled from 5,809 TWh in 2000 to 10,434 TWh in 2023. Gas generation more than doubled from 2,745 TWh in 2000 to 6,634 TWh in 2023. Other fossil fuel generation declined from 1,324 TWh in 2000 to 786TWh in 2023, driven by a fall in oil generation. 

Renewables increased from 19% in 2000 to 30% in 2023, driven by rapid growth in wind and solar, which have grown substantially over the last two decades. In 2023, wind and solar made up 13.4% of global generation, rising from only 0.2% in 2000. Most of this growth happened in recent years. Wind and solar grew more in the five years since 2018 (+2,092 TWh) than in the 17 years before that (+1,811 TWh).

Hydro generation grew 60% between 2000 and 2023, but its share in the electricity mix declined from 17% to 14% as it failed to keep pace with rising demand. In fact, with a share of 16%, non-hydro renewables surpassed hydro generation in 2023 for the first time.

Nuclear generation has mostly remained stable, with the reduction in generation in Europe and Japan largely offset by growth in China. Consequently, with electricity demand nearly doubling over the last two decades, the share of nuclear generation fell from 16.6% in 2000 to 9.1% in 2023.

Since 2015, almost all sources of electricity have seen an increase. The largest gains came from wind (+1,475 TWh, +178%) and solar (+1,375 TWh, +537%) with solar generation in 2023 growing to more than six times 2015 levels. Coal (+1,153 TWh, +12%) and gas (+1,080 TWh, +19%) grew slightly less. There were smaller increases in bioenergy (+220 TWh, +46%), hydro (+326 TWh, +8.4%) and nuclear (+153 TWh, +6%). Generation from other fossil fuels, such as oil, fell by 333TWh (-30%).

China saw the largest changes of any country for coal, nuclear, bioenergy, hydro, wind and solar. China’s growth in coal generation (+1,670 TWh) since 2015 amounted to more than the overall global increase, as coal generation fell significantly in the US and other countries in that period. However, China also contributed nearly half (47%, 700TWh) of the global growth in wind and 40% (545 TWh) of the increase in solar generation from 2015 to 2023.

The US is the main driver of gas growth globally and the only major economy displaying a shift from coal generation to gas. Since 2015, gas generation in the US rose 469 TWh, accounting for 43% of the global increase over that period. In comparison, China is planning a transition from coal straight to clean energy without a transition via gas.

The global electricity sector must be decarbonised for the world to keep global heating below 1.5C. Strong growth in wind and solar in recent years offers 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. At COP28, the world agreed to a global goal to triple renewable electricity capacity by 2030, which would almost halve power sector emissions.

To align with the IEA Net Zero Emissions scenario, wind must triple between 2022 to 2030 (+16% per year). Solar needs to grow more than five times its current generation (+26% a year). In 2023, solar grew at 23% and wind grew at 10%.

Growth in hydro generation needs to return and even surpass growth seen over the last two decades, but recent years have seen output from hydro plants stagnate. Nuclear generation has remained unchanged on a global level for the last two decades, but would likely need to see a significant increase of 47% over 2023 levels. In 2023, nuclear generation increased by just 1.8% and hydro generation fell by 2%.

Under the IEA’s scenario, coal and gas generation both need to fall, with coal generation responsible for most of the required emissions reductions. Coal generation would halve from 2023 to 2030 and be overtaken by wind, solar and hydro generation.

Gas generation would need to see more moderate reductions from 6,634 TWh in 2023 to 6,007 TWh in 2030. In 2023, both coal and gas generation increased.

In 2023, global electricity demand reached a new record high of 29,471 TWh, rising 627 TWh (+2.2%) compared to 2022. However, the annual growth was below average (this is explored further in Chapter 2.3).

More than half (52%) of the world’s electricity demand in 2023 was in Asia, which is still relatively low given the region has 55% of the world’s population. China, the country with the highest demand at 9,441 TWh, made up 62% of Asia’s and 32% of global electricity demand. 

The United States had the second highest electricity demand at 14.5% of global demand (4,270 TWh).

African countries accounted for only 3% of global electricity demand, despite comprising 18% of the world’s population.

Global per capita demand in 2023 was 3.7 MWh. Countries with a similar per capita demand include Argentina or South Africa. As a result of improved living standards, per capita demand has been steadily rising over the last two decades and was up nearly 50% over 2000 (2.5 MWh).

Among the ten largest electricity consumers, Canada and the US have the highest per capita demand. Canada’s per capita demand of 15.9 MWh in 2023 was more than four times the world average. Per capita demand in the US and Canada was also about twice as high as that of the largest industrial nations in Western Europe, with France (7.2 MWh) and Germany (6.2 MWh) showing significantly lower values.

China’s per capita demand has grown by more than six times since 2000 (1.1 MWh) to reach 6.6 MWh in 2023, surpassing Germany for the first time. In 2012, China had only half the per capita demand of Germany.

Despite substantial electricity demand growth, India’s per capita demand of 1.4 MWh remained at less than half the world average.

As the global power supply becomes cleaner, electrification will be the key lever in decarbonisation across industries. As of 2021 (the latest year with data available), 21% of final energy consumption globally came from electricity. This number is set to increase substantially as electrified technologies are introduced.

Key sectors that are expected to see increased electrification include transport, residential energy use (for example, heating) and industry. 

Commercial and public services currently have the highest share of final energy consumption provided by electricity at 52%. Conversely, only 1.3% of the energy consumption in the transport sector comes from electricity. This is expected to grow rapidly as battery electric vehicles gain market share. Similarly the faster adoption of heat pumps is set to increase the electrification rate of the residential sector from 26% in 2021.

Global electricity demand has nearly doubled over the last two decades, from 15,277 TWh in 2000 to 29,471 TWh in 2023.

The growth in electricity demand was largely driven by economic growth in Asia, where demand more than tripled from just 4,199 TWh in 2000 to 15,228 TWh in 2023. To put this into perspective, Asia’s electricity demand in 2023 was almost as high as the total global electricity demand in 2000.

For emissions to fall, clean electricity growth needs to meet and exceed new electricity demand. This has happened only twice since the turn of the century. In 2015 and 2019, clean electricity growth from wind, solar and other clean sources exceeded electricity demand rises, leading to a small reduction in fossil generation. Consequently, 2015 was the only year with falling fossil generation, excluding the demand falls caused by the financial crisis in 2009 and the Covid-19 pandemic lockdowns in 2020.

In 2022 and 2023, clean electricity capacity additions meant generation increases came close to meeting electricity demand growth, but poor nuclear output in 2022 and low hydro generation in 2023 kept increases below demand growth, resulting in small increases in fossil generation.

As electrification drives an increase in electricity demand over the coming years (as explored in Chapter 2.3), the rapid addition of clean generation capacity becomes even more crucial to meeting new demand while decarbonising existing power generation.

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 3.5% annually between 2023 and 2030, a rise from the average annual growth of 2.7% between 2016-2022. In 2023, electricity demand grew 2.2% (+627 TWh) compared to the year before. Electrification increases electricity demand, while energy efficiency also helps to suppress it. 

Electrification is already driving up demand (see Chapter 2.3) and with growing demand from data centres, air conditioners, and industry, a strong focus on efficiency is critical for meeting climate targets.

The power sector, the fastest-growing source of final energy demand, is set to grow substantially, driven by electrification as the world tackles the climate crisis, along with a growing global population and improved living standards. According to the IEA NZE scenario, electricity’s share of final energy consumption would increase from the current 21% to 27% by 2030, enabling the electrification of transport and industry.

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. In the IEA NZE scenario, demand is expected to grow to 38,127 TWh by 2030, up from 29,471 TWh in 2023.

In 2023, global power sector emissions rose to 14,153 million tonnes of CO2, an increase of 1% (+135 MtCO2) over 2022.

Asia made up 63% of global power sector emissions at 8,966 MtCO2. China had the highest global power sector emissions with 5,491 MtCO2, representing 39% of global power sector emissions. 95% of China’s power sector emissions are the result of burning coal.

The US was the second largest emitter in 2023 with 1,570 MtCO2 (11% of global power sector emissions), followed by India with 1,404 MtCO2 (9.9%).

Economies that individually had 2% or less of global power sector emissions still made up 28% of global power sector emissions.

In 2023, global emissions intensity dropped to its lowest value in at least two decades. At 480 gCO2/kWh, the average kWh of electricity generated in 2023 is cleaner than at any point since at least 2000. 

Canada, Brazil and France had the lowest carbon intensity among the top ten countries with the highest demand. All three countries generated a majority of their electricity from clean sources. Canada’s electricity generation in 2023 was 58% hydro power and 14% nuclear. Brazil had a 60% share of generation from hydro. Additionally, 21% of Brazil’s generation came from wind and solar. Historically, France’s generation has been dominated by nuclear power which still made up 65% in 2023, while wind and solar contributed a further 14%.

India (713 gCO2/kWh) and China (581 gCO2/kWh) were the only two countries among the top ten global electricity producers with an emissions intensity higher than the global average in 2023. This can be attributed to their substantial coal use for electricity generation – 75% of India’s and 60% of China’s electricity generation came from coal in 2023. 

However, both China and India have lower per capita emissions than other major emitters. The top per capita emitters among the top electricity consumers  are South Korea and the US. Indeed, India’s per capita power sector emissions are 1.8 times lower than the global average.

Since 2000, absolute power sector emissions have almost doubled, rising from 7,911 MtCO2 in 2000 to 14,153 MtCO2 in 2023. This equates to an average annual increase of 2.6%. Rapid economic growth across many regions has driven this increase, as global electricity demand has risen while the world maintained a significant dependence on fossil fuels. However, growth has slowed in recent years with annual increases of 1.5% in 2022 and 1% in 2023. This followed a rapid increase in 2021 when economic recovery from the Covid-19 pandemic saw emissions increase 6.3%.

Emissions intensity has declined significantly from its peak in 2007 at 547 gCO2/kWh. In 2023, emissions intensity of global electricity production was 12% lower, at 480 gCO2/kWh. With the exception of 2013 and 2021, emissions intensity has fallen every year since 2011 due to clean electricity (mainly in the form of wind and solar) growing faster than fossil sources of electricity production.

Over the last two decades, only four years have seen falls in power sector emissions. A drop of 1.5% in 2009 came amidst the global financial crisis. In 2015, reduced coal generation in China led to a temporary global emissions fall of 1%. In 2019, low global demand growth alongside coal to gas switching in the US enabled emissions to fall 1.1%. In 2020, the impact of the Covid-19 pandemic led to a record emissions fall of 3.1%.

The last decade has seen significant growth in emissions compared to the 2000s. Between 2003 and 2012, emissions rose by an average of 3.8% annually. Between 2013 and 2022, this growth rate slowed to 1.4%. The 1% increase in 2023 is further below this average.

2023 is likely to have been the peak of power sector emissions (see Chapter 2.1), with a new era of falling emissions beginning from 2024 onwards.

Emissions have not been rising across all regions. Power sector emissions in the OECD – including both the US and EU – peaked in 2007 and have fallen 28% since then. Emissions in Latin America reached a peak in 2015. 

In the last two decades, Asia has seen the largest rise in power sector emissions mainly as a result of increased coal use for electricity generation as the region’s emerging economies grew rapidly. Power sector emissions in Asia more than tripled from 2,623 MtCO2 in 2000 to 8,966 MtCO2 in 2023. Combined with the stagnation and falls in other major emitting regions, Asia’s share of global power sector emissions rose from just 33% in 2000 to 63% in 2023. However, Asia has a large share of the global population and the bulk of global economic growth is now happening in Asia.

Despite a 75% increase in power sector emissions from African countries since 2000, they still only made up 3.4% of global emissions in 2023 – the same as Japan’s share. There is an opportunity for Africa to meet rising demand with clean sources and leapfrog fossil fuels to avoid the increase in emissions previously associated with economic development.

To align with the IEA Net Zero Emissions scenario, mature (OECD) economies must decarbonise their electricity generation by 2035 and the rest of the world by 2045. We are not yet seeing the declines needed for those milestones, which require emissions from the power sector to fall by more than 7.6% per year between 2023 and 2030.

In 2023, emissions increased 1% (+135 MtCO2), compared to an average annual increase in emissions of 1.5% between 2016 and 2022. OECD economies, which will decarbonise first, are already seeing declining power sector emissions, with a fall of 6.8% in 2023. 

The world is closing in on falling power sector emissions, but will need to move much faster to achieve the steep declines required. If delivered, the global goal to triple renewable electricity capacity announced at COP28 has the potential to almost halve power sector emissions by 2030, according to the IEA NZE scenario. This would see solar and wind provide around 40% of global electricity generation by 2030.