BAKU, Azerbaijan, January 20. Artificial intelligence, air conditioners, and electric vehicles are emerging as the key new drivers of global electricity demand, International Energy Agency (IEA) Executive Director Fatih Birol said during panel discussions at the World Economic Forum (WEF) in Davos, Trend reports.
“We are entering the age of electricity. Electricity demand is growing almost three times faster than total energy demand,” Birol said. “In addition to the traditional drivers, three new factors are pushing consumption: first, artificial intelligence; second, air conditioners, which are a major driver worldwide; and third, electric vehicles. Today, one in four cars sold globally is electric. Meeting this demand will rely primarily on renewables, natural gas, and nuclear power.”
Birol also highlighted the growing risks to energy security. “Energy security should be treated on par with national security. Many countries aim to generate as much of their own energy as possible, boosting nuclear, renewable, or other domestic sources. When entering energy deals and contracts, they now consider not only price but also the reliability of their partners over the long term.”
He recalled that in the 1970s, oil accounted for more than half of global energy consumption; today, its share is below 30%. “People are switching from oil to other sources wherever possible. The consequences of Russia’s invasion of Ukraine illustrate this shift: Europe suffered as a consumer, but Russia also lost its largest client. Our data show that Russian oil and gas revenues have declined by 30%. There are no obvious winners in this energy crisis. Energy demand is growing, but while oil and gas will remain part of the mix for years, electricity demand is rising most sharply and impressively,” Birol said.