Sustainable Development and the Surge in Electricity Demand Across Emerging Economies

Abstract

Electricity plays a pivotal role in the operation and development of contemporary societies and economies, with its significance escalating as electricity-dependent technologies like electric vehicles and heat pumps gain prominence. Currently, power generation stands as the foremost contributor to global carbon dioxide emissions. However, it concurrently spearheads the transition towards achieving net zero emissions by swiftly expanding renewable energy sources like solar and wind power. Balancing the imperatives of ensuring secure and cost-effective electricity access for consumers while simultaneously mitigating global  emissions represent a fundamental challenge in navigating the energy transition. The global expansion of electricity demand experienced a relatively modest increase of 2.2% in the fiscal year 2023, a slight deceleration from the 2.4% growth observed in the preceding fiscal period of 2022. Notwithstanding this moderation, anticipations indicate a prospective upturn in growth rates to a higher magnitude of 3.4% throughout the forecast period spanning 2024 to 2026. In addition, this trajectory of expansion is anticipated to be chiefly propelled by emerging markets, which persist in assuming a dominant role in the escalation of electricity demand, akin to their position in the year 2023.