BAKU, Azerbaijan, September
23. Electricity could cost-effectively meet 33%
of global final energy consumption by 2035, up from the current
23%.


This was reflected in an analysis by the International Energy
Agency (IEA), prepared at the request of Türkiye and Australia for
discussions ahead of COP31.


The report reviews opportunities to accelerate electrification
on a global scale and assesses its implications for energy security
and climate goals.


According to the document, assuming the use of currently
available technologies and energy prices consistent with levels
prior to the recent supply shock, electricity could
cost-effectively supply 33% of global final energy consumption by
2035, compared to 23% today. This would bring the world closer to
the electrification target of 35% currently under discussion.


The document noted that, given current energy prices amid the
crisis in the Strait of Hormuz, shifting an even larger share of
global energy consumption to electricity could become economically
viable.


The IEA reports that global electricity consumption has grown
faster than economic output in recent years—and at nearly twice the
rate of overall energy demand—driven primarily by the use of air
conditioning, data centers, advanced manufacturing, and electric
vehicles.


According to the agency, under an accelerated electrification
scenario, fuel-importing nations could see their energy import
costs drop by more than $400 billion by 2035 compared to 2025
levels.


The report emphasized that global oil consumption by 2035 could
be 18 million barrels per day lower than it would be if current
trends continued. The IEA attributes this effect primarily to the
more rapid adoption of electric vehicles.


"Electrification can also help reduce carbon dioxide emissions
in transport, buildings, and industry. These three sectors account
for more than half of energy-related CO2 emissions.







Under an accelerated electrification scenario, CO2 emissions in
these three sectors could fall by 40 percent by 2035. According to
the report, this would be sufficient to put total energy-related
CO2 emissions on a downward trajectory, regardless of the
electricity generation mix.


At the same time, the rapid expansion of domestic low-carbon
electricity sources could further enhance the benefits of
electrification in terms of energy security and emissions
reduction," the agency pointed out.


The IEA highlighted significant potential for cost-effective
increases in electrification across all regions, although
opportunities and priorities vary by country.


"In emerging and developing economies, this potential is linked,
in particular, to switching agricultural water pumps to electric
power, expanding the use of electric two- and three-wheelers in
densely populated cities, and increasing opportunities for small
businesses to use electricity in sectors such as food and textile
production.


However, realizing this electrification potential will require
additional investment in power generation and electricity grids, as
well as the deployment of smarter, more flexible energy
systems.


The report also noted the need to address emerging threats to
electricity system security, including supply chain concentration
for key technologies and critical minerals, cybersecurity risks,
natural disasters, and climate-related threats," the IEA said.


The agency stressed that to ensure the benefits of
electrification are widely shared, public authorities need to help
certain households and businesses manage upfront costs.