Global shift to electricity may lower energy costs – IEA

The world is entering an era of cheaper energy as a surge in electricity use reduces reliance on fossil fuels, according to the International Energy Agency (IEA).

The agency’s latest report forecasts that global demand for oil, gas, and coal will peak this decade, while oil and liquefied natural gas (LNG) supplies rise, easing market balances.

Electricity demand, led by China, is set to grow six times faster than total energy demand over the next ten years. The IEA predicts electric vehicles will make up 50 per cent of new car sales worldwide by 2030.

Despite the shift, oil supplies continue to climb, with significant new output from the US, Brazil, Canada, and Guyana. Crude prices could stabilise between $75 and $80 a barrel if OPEC+ maintains output restrictions.

The IEA also warns that while progress on low-emissions electricity is reducing carbon emissions, the world remains off-track to meet climate goals, with temperatures set to rise 2.4°C above pre-industrial levels by the century’s end.