Beatrice Lang
The world is heavily dependent on electricity, with about a fifth of global energy consumed in the form of electrical energy. In 2022, the total final electricity consumption was split between various sectors, including industry (42.2%), residential (26.8%), commercial and public services (21.1%), transport (1.8%), and other sectors (8.1%). While access to electricity has improved over the years, with the share of the global population having access rising from 83% in 2010 to 89% in 2017, there are still significant inequalities in access and consumption between countries and regions. The demand for electricity is increasing, and the world will need a significantly increased energy supply in the coming decades, especially for cleanly-generated electricity.
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What You'll Learn
Energy equity and affordability
The world is heavily dependent on electricity, with demand increasing more rapidly than overall energy use. This dependence is expected to grow over the next 30 years, especially for cleanly generated electricity.
Access to electricity has been steadily increasing worldwide, with the share of people lacking access decreasing from 2 in 10 people in 2000 to fewer than 1 in 10 in recent years. This increase has been driven primarily by growth in low and middle-income economies. However, there are still significant disparities in access, with Sub-Saharan Africa home to three-quarters of the world's population without electricity.
Affordability is another critical aspect of energy equity. Low-income households, households of colour, renters, and older adults have been found to bear disproportionate energy burdens, with many consuming only the minimum amount of electricity necessary due to financial constraints. In addition, past and current policies have disproportionately impacted these communities, concentrating them in areas with poor housing, high poverty rates, and limited access to efficient and healthy homes.
Initiatives such as the ACEEE's Energy Equity for Renters aim to address these disparities by promoting affordable, energy-efficient housing for renters. Similarly, the Residential Retrofits for Energy Equity program provides training and technical assistance to governments and community-based organizations to support energy-saving home retrofits for affordable housing.
On a larger scale, nuclear power plants can play a role in improving energy equity and affordability. Nuclear power can reduce dependence on foreign energy supplies, stabilize power prices, and contribute to clean air and low-CO2 objectives.
Additionally, the Department of Energy's Equity in Energy initiative seeks to expand the inclusion and participation of underserved communities, such as minorities, women, veterans, and formerly incarcerated persons, in energy programs and the private energy sector.
Addressing energy equity and affordability requires a multi-faceted approach that considers access, consumption, structural inequalities, and the implementation of initiatives and policies that promote equitable outcomes.
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Electrification of rural areas
The world's dependence on electricity is evident in how it powers so much of modern life. Initially, electricity was sought as a source of lighting, with electric arc lamps in the 1870s and incandescent light bulbs in the 1880s. Soon, electricity became a source of power for machines in factories and homes, increasing demand. By the 1920s, electricity was commonplace in cities, but rural areas lagged due to the belief that infrastructure costs would outweigh the benefits. This disparity led to initiatives like the 1936 Rural Electrification Act in the US, which aimed to provide federal loans for electrical distribution systems in rural areas.
The process of rural electrification is challenging due to the high costs of expanding national grids and the sparse population in these areas. As of 2019, 770 million people, or 10.2% of the global population, still lack access to electricity, with Sub-Saharan Africa being the region with the highest number of unelectrified people. Electrification of rural areas is crucial for economic and social development, and several strategies have been proposed to address this issue.
One strategy is the Rural Electrification Programme (REP), which aims to expand the reach of electricity supply to rural areas through the construction of electrical distribution pole lines. The REP also provides house wiring assistance through loan programs to households. Another approach is the Networked Rural Electrification Model, which links villages in a selected area to a network of centralized generation facilities located in areas with better renewable energy resources. This model combines multiple technologies to provide a single power source.
To facilitate the electrification of rural areas, governments and organizations have implemented various initiatives. For instance, the Rural Electrification Administration (REA) in the United States provides loans to finance the construction of electricity generation and transmission infrastructure in rural communities. Additionally, the Tennessee Valley Authority was established in 1933 to provide rural electrification in the Tennessee Valley and surrounding areas through electric cooperatives.
While progress has been made, challenges remain, especially in developing nations. The high cost of providing electricity to remote villages is a significant hurdle, and energy resources and demand in these areas can be volatile, making planning difficult. Furthermore, the historical determination of village locations based on factors like soil and water may not be optimal for renewable energy generation. Nevertheless, with continued efforts and innovative solutions, the world can move closer to the goal of universal access to electricity.
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Nuclear power and carbon emissions
Nuclear power is widely recognised as a low-carbon energy source, and its use is expected to increase in the coming years. Nuclear energy currently provides 10% of the world's electricity and a quarter of its low-carbon supply. It is also a key component of many countries' plans to achieve carbon neutrality. For instance, China aims to peak its CO2 emissions by 2030 and achieve carbon neutrality by 2060, with nuclear power playing an active role in this transition.
Nuclear power plants generate energy through fission reactions, which produce much lower carbon emissions than fossil fuels like coal, natural gas, or oil. This is because no carbon is directly generated or released in the fission reaction due to the lack of fossil fuel consumption during nuclear electricity production. However, it is important to note that nuclear energy is not entirely carbon-free when considering its entire life cycle, from uranium extraction to nuclear waste storage. The construction of nuclear power plants, the extraction and conversion of raw materials, and the management and disposal of nuclear waste can all generate carbon emissions.
The extent of these emissions is debated, with studies estimating the carbon emissions from nuclear power plants to be between 3.7 to 117 grams of CO2 equivalent per kilowatt-hour (kWh). These discrepancies may be due to limited data and varying accounting methods. Nevertheless, nuclear power is still considered a more reliable, sustainable, and economic source of clean energy than other renewable sources such as hydropower, solar power, and wind power.
Nuclear power also has the advantage of being a dispatchable source of energy, meaning it can adjust its output according to electricity demand, unlike variable energy sources like wind and solar. This makes nuclear power a crucial component in hybrid energy systems that combine nuclear and renewable power sources. Additionally, nuclear power has non-electric applications, such as district heating, hydrogen production, and desalination, which can further reduce emissions in hard-to-abate industries.
While nuclear power has the potential to help reduce carbon emissions and mitigate climate change, it is not without its risks and challenges. These include the potential for widespread contamination of air and water in the event of an uncontrolled nuclear reaction and the long-term environmental impact of nuclear waste. However, the likelihood of such incidents is mitigated by strict regulations, safety systems, and oversight by organisations like the U.S. Nuclear Regulatory Commission.
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Energy efficiency and policy
Energy efficiency is a critical component of the global transition to clean energy, offering cost-effective CO2 mitigation options while reducing energy costs and enhancing energy security. It is considered the "first fuel" in this transition, as it represents the most effective way to avoid energy demand in the Net Zero Emissions by 2050 Scenario. Electrification, behavioural change, digitalisation, and material efficiency are closely related measures that work in tandem with energy efficiency to shape global energy intensity.
Energy efficiency policies have been strengthened globally, with countries representing over 70% of the world's energy consumption introducing new or improved efficiency policies. These policies are particularly focused on the energy performance of specific technologies, such as electric vehicles, charging infrastructure, and heat pumps in buildings. Additionally, retrofitting energy-intensive buildings, district heating and cooling, and investments in public transport systems and smart devices contribute to accelerated progress in energy efficiency.
In advanced economies, replacing older infrastructure with newer, more efficient systems is a key strategy. This includes the large-scale adoption of electric vehicles, which reduces oil demand, and the electrification of heating systems, which lowers natural gas demand. Improving the fuel efficiency of vehicles and insulating buildings are other effective measures.
Furthermore, energy efficiency plays a strategic role in various development goals, including economic growth, resource conservation, climate change mitigation, and improved health. For example, the use of energy-efficient cookstoves in rural areas can significantly reduce indoor air pollution, which is a major health hazard in many developing countries.
Nuclear power is another important aspect of energy efficiency and policy. Nuclear plants can enhance the reliability of the power system by diversifying power generation technologies, reducing dependence on foreign energy supplies, and stabilising power prices. Additionally, nuclear power contributes to clean air and low-CO2 objectives, providing good voltage support for grid stability.
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Global electricity demand
The sharp increase in the world's electricity use in 2024 was nearly double the annual average over the past decade. Global electricity demand increased by 4% (+1,172 TWh) in 2024, the third-largest absolute increase ever. This was significantly above the average annual demand growth of 2.5% in the previous ten years (2014-2023). Since the turn of the century, electricity demand has doubled. China recorded the largest increase in electricity demand, adding 623 TWh (+6.6%), which accounted for more than half of the global increase. The US saw a rise of 128 TWh (+3%), and India's demand increased by 98 TWh (+5%). Other countries with substantial increases were Brazil, Russia, Vietnam, and Türkiye.
The expanding supply of low-emissions sources covered most of the increase in global electricity demand in 2024. The amount of new renewable power capacity installed worldwide rose to around 700 gigawatts, setting a new annual record for the 22nd consecutive year. Together, renewables and nuclear power accounted for 40% of total global electricity generation for the first time. Nuclear power capacity additions reached their fifth-highest level in the past three decades. Solar and wind power are the fastest-growing sources of electricity, surpassing hydropower and nuclear generation in recent years.
While access to electricity has improved globally, with the share of people lacking access decreasing from 2 in 10 people in 2000 to fewer than 1 in 10 in recent years, there are still significant inequalities in electricity access and consumption between countries. In many low-income countries, per capita electricity generation is more than 100 times lower than in wealthy countries. In 2024, the entire continent of Africa accounted for just 3.1% of total global electricity demand, less than Japan.
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Frequently asked questions
The world is heavily dependent on electricity, with about a fifth of global energy consumed in the form of electric energy. In 2022, the global electricity consumption was 24,398 terawatt-hours, almost triple the consumption in 1981.
Access to electricity varies significantly across the world. In 2017, 89% of the global population had access to electricity, up from 83% in 2010. However, around 750 million people, mostly in Sub-Saharan Africa, still lack access to electricity. There are also disparities between rural and urban areas, with 78% of rural areas having access compared to 97% of urban areas in 2017.
The world's dependence on electricity has several implications. Firstly, it highlights the need for a reliable and sustainable energy supply, with electricity demand increasing faster than overall energy use. Secondly, it underscores the importance of energy equity and affordability, as many households may only be able to afford the minimum threshold of electricity usage. Finally, the reliance on electricity contributes to global goals of reducing greenhouse gas emissions, with a shift towards renewable and nuclear energy sources.
