IEA: Global power demand is surging – and renewables are passing coal

Global electricity use is climbing fast, and renewables are on track to become the world's top power source this year, according to a new report from the International Energy Agency. Demand is projected to grow 3.6% in 2026 and 3.8% in 2027, pushed up by industry, air conditioning, appliances, EV charging, and data centers. Solar is leading the shift: generation is expected to grow by about 600 terawatt-hours in 2026, matching last year's record pace, and solar is set to pass wind as the world's second-largest renewable source after hydropower.

This growth is happening while natural gas markets are under stress from conflict in the Middle East, which disrupted shipments of liquefied natural gas (LNG, gas cooled for transport by ship) through the Strait of Hormuz and pushed gas prices in Asia and Europe to their highest levels since the 2022-23 energy crisis. Some countries responded by switching from gas back to coal, which is expected to push global power-sector emissions up about 1% this year before leveling off in 2027 as renewables and nuclear power keep growing.

None of this changes rebate programs or equipment costs for your home directly, but it's a sign of where energy prices and supply may be headed. Regions leaning more on solar and other renewables were better insulated from the recent gas price spikes, while areas still dependent on imported gas saw sharper cost swings. Homeowners considering solar, batteries, or electric equipment may see this broader shift in the grid as part of the backdrop for their own energy decisions.