APAC electricity demand to grow 4% annually to 2024

The growth rate stabilises following an 8% increase in 2021.

Asia Pacific’s (APAC) electricity demand growth rate is expected to stabilise at an average of around 4% annually until 2024, according to the International Energy Agency (IEA).

The IEA said in its Electricity Market Report that the regional demand growth rate is slightly below pre-pandemic levels but above the global average of below 3%. 

“Across the region, electricity demand growth is being driven by both industrial development and increased utilisation and electrification of cooling, cooking and mobility, among other end uses,” it said. 

Electric demand growth in the region remained positive in 2019 and 2020 despite the economic slowdown, growing 2% in 2020. The demand jumped 8% in 2021 mostly driven by China and India which both saw around 10% growth.

Most countries in APAC were expected to see continued demand growth up to 2024, following the 2021 rebound, except Japan.

Coal-fired generation, meanwhile, saw an 8% increase last year to reach over 8,000 terawatt-hour, led by China and India due to their economic recovery, despite coal shortages in late-2021. Renewables, however, saw the highest growth rate at 10% and is still led by China and India but was also observed in other countries across the region.

With the slower electricity demand growth, IEA said around two-thirds of the net demand increase is seen to be covered by renewables, followed by coal which will cover 27% of the demand growth and nuclear at 7%.