International Energy Agency warns of new risks in ‘age of electricity’

[Starmix]

According to the report, the International Energy Agency (IEA) has warned that the global energy system faces its broadest test in decades, as overlapping risks stretch from fuel markets to supply chains and digital infrastructure. In its World Energy Outlook 2025, released Tuesday, the Paris-based agency said the world has entered what it calls the “Age of Electricity,” a period when power demand is rising faster than total energy use, reshaping economies and exposing new vulnerabilities.

The report also stated that the world has never faced energy security pressures across so many fronts at once, from oil and gas to grids, data, and minerals,” IEA Executive Director Fatih Birol said. He urged governments to show the same determination that led to the agency’s creation after the 1973 oil crisis.

The report also said that electricity now accounts for one-fifth of all final energy use but powers more than 40 percent of global economic activity, according to the report. Birol said the transformation is accelerating faster than expected: “Last year, we said the world was moving into the Age of Electricity, and it’s clear today that it has already arrived.”

In addition to the report, unlike previous decades, the surge in power use is now driven by advanced economies rather than emerging ones. Data centers and artificial intelligence have become major energy consumers, with global investment in digital infrastructure forecast to hit USD580 billion in 2025 -- surpassing spending on oil supply.

“Those who say ‘data is the new oil’ can now back it up with numbers,” Birol added. The IEA’s updated roadmap calls for full electricity access by 2035 and universal clean cooking by 2040, largely through liquefied petroleum gas (LPG) and decentralized power systems.


Source: PNA/ Anadolu

 

[kit_hung]

This IEA report touches on very serious issues about the state of energy in the world. They say we are officially in the “Age of Electricity” where electricity demand is growing faster than total energy consumption. This is changing the economy and also introducing new vulnerabilities in grids, data and supply chains.

Fatih Birol has stressed that the world has never faced greater pressure on energy security from multiple sides at the same time. From oil and gas to minerals and digital infrastructure, everything is under pressure. He has called on governments to have the same determination as that of the 1973 oil crisis.

Currently, electricity accounts for a fifth of energy use but drives more than 40% of global economic activity. Advanced economies are leading the demand because of data centers and AI. Investment in digital infrastructure is expected to reach USD580B in 2025, surpassing even spending on oil supply. This confirms the saying “data is the new oil.” The IEA's new roadmap aims for full electricity access by 2035 and clean cooking for all by 2040.