IEA (International Energy Agency) releases the Electricity 2026 report, warning the world faces a‑long‑term structural electricity shortage.

Category: Industry News

Time: 2026-06-30

Summary: The IEA Electricity Report 2026 analyzes global electricity‑price trends and regional gaps. Global power demand rose by 3% in 2025 and will grow over 3.5% annually from 2026 to 2030, driven by industries, EVs, air‑conditioners and data‑centers. Renewables and nuclear power will account for half of global power generation by 2030. Wholesale electricity prices diverge sharply worldwide. Europe and the US saw higher power costs in 2025, while India kept stable tariffs. High industrial‑power prices in the EU undermine its industrial competitiveness. Negative‑price power becomes a structural problem for high‑renewable‑energy grids, which can be relieved by energy‑storage and flexible power loads. Amid the global power shortage, a Chongqing‑based manufacturer develops industrial‑type, methanol‑fueled and hydrogen‑powered generator sets for global power‑supply demands.

According to the report, global electricity demand rose by 3% year‑on‑year in 2025. Electricity‑demand growth will outpace economic expansion in the coming years. Over the next five‑year period, the annual‑average growth rate of global power demand is projected to be roughly 50% higher than the average level of the previous decade. By 2030, the growth rate of global power consumption will be 2.5 times that of overall energy‑demand growth.
Furthermore, global power demand will maintain robust growth through 2030. From 2026 to 2030, the yearly growth rate of worldwide electricity demand will exceed 3.5%. Key driving factors lie in rising power‑consumption from heavy‑duty industries, electric vehicles, air‑conditioning systems and data‑centers. Renewable energy and nuclear power are expected to account for 50% of the global power‑generation mix.
The report reviews power‑market performance across economies. In 2025, average wholesale electricity prices climbed year‑on‑year in many regions including Europe and the United States. By contrast, markets such as India and Australia registered lower power prices compared with 2024. There remains a stark regional gap in power tariffs for energy‑intensive industries.
In 2025, electricity costs for EU energy‑heavy industries stayed elevated. Its average industrial power price was more than twice that of the US and nearly 50% higher than China’s, almost unchanged from 2024, which keeps eroding Europe’s industrial competitiveness.
Negative‑price electricity has become more prevalent in multiple power markets. Exceptions are Northern Europe and California (US), where hours with negative wholesale rates declined in 2025. Improved responsiveness of supply and demand to price signals and expanded energy‑storage deployment absorbed surplus power and eased short‑term grid imbalance.
Frequent negative‑price episodes have turned into a structural feature of high‑renewable‑energy power grids. Wholesale prices may plunge to zero or below when renewable‑energy output surges without sufficient grid‑regulation capacity. The IEA highlights energy‑storage systems, demand‑response programmes and price‑flexible industrial loads as core solutions to mitigate negative‑price risks and optimize power‑pricing mechanisms.

Widening Regional Divergence in Wholesale Power Prices

After a decline in 2024, wholesale electricity costs rebounded in 2025 across numerous nations on the back of rising natural‑gas prices. Following the 2022‑2023 European energy crisis, European power prices still remain highly volatile. US regional electricity rates are heavily affected by fuel‑cost fluctuations, extreme weather and grid bottlenecks. Emerging economies represented by India enjoy stable or even falling wholesale power prices, supported by ample domestic coal supply and rapid renewable‑energy development.

Regions with climbing wholesale electricity prices

  1. Germany: Its 2025 average wholesale power price jumped 20% year‑on‑year (14% in euro terms) to around 100 USD/MWh. Higher gas prices plus weak wind‑power output due to adverse weather forced extra coal‑fired and gas‑fired power generation, pushing up tariffs.
  2. France: The average wholesale price increased by 8% year‑on‑year to 70 USD/MWh. Hydropower generation dipped by nearly 20%, yet steady nuclear‑power output curbed further price hikes.
  3. United Kingdom: Wholesale power prices rose 18% year‑on‑year (14% in GBP terms) to 105 USD/MWh. Cold early‑winter conditions plus low wind output boosted gas‑power generation and lifted wholesale rates.
  4. Northern Europe: Wholesale prices went up 15% to 45 USD/MWh year‑on‑year. It still holds Europe’s lowest power‑price level, on par with the United States.
  5. United States: The nationwide average wholesale electricity price surged roughly 30% year‑on‑year to 50 USD/MWh in 2025. A 56% year‑on‑year jump in Henry‑Hub natural‑gas spot prices lifted overall power costs. Milder summer temperatures were offset by a 9%‑rise in winter heating‑degree‑days (HDD), further pushing electricity tariffs upward.
Against the backdrop of worldwide power shortages, a power‑equipment manufacturer based in Chongqing, China has rolled out industrial‑grade generator sets, methanol‑fueled generators and hydrogen‑powered generating units tailored to market‑demand trends, to address global power‑supply gaps.

Keywords: IEA (International Energy Agency) releases the Electricity 2026 report, warning the world faces a‑long‑term structural electricity shortage.

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