There are a lot of fascinating things this world is creating, growing into, and becoming. These next five years will certainly look different than these past five years. But there is one glaring obvious fact; the world has an insatiable appetite for more electricity.

Most of the new technological advances require electricity. Some require unfathomable amounts. Before these inevitable changes can take place, there is going to be a bottleneck for electricity demand, and progress will be constrained until more electricity is produced. 2025 will be the year the world will get to work on it.

Each of us is quite familiar with electricity needs from our own households. Who can imagine a life without it these days? I asked Copilot how much electricity is consumed globally every day:

Globally, the world consumes a staggering amount of electricity. In 2022, the total global electricity consumption was approximately 24,398 terawatt-hours (TWh). This translates to an average daily consumption of around 66.8 TWh.

I then asked Copilot what is projected to be global electric consumption for the next 5 years, and this is the reply:

Global electricity consumption is expected to continue its upward trend over the next five years. According to projections, the global final electricity demand is anticipated to grow at an average rate of around 3% per year. By 2030, the total global electricity consumption could reach approximately 57,000 terawatt-hours (TWh).

This growth is driven by several factors, including the electrification of end-uses, economic development in emerging economies, and the increasing adoption of electric vehicles and renewable energy sources. Additionally, sectors like data centers, artificial intelligence, and cryptocurrency are expected to significantly contribute to the rise in electricity demand.

I’ll go out on a limb and say I think this may be underestimated.

So, where does electricity production currently stand? What are the sources?

Please see the following link for some interesting information:

https://www.iea.org/news/global-electricity-demand-set-to-rise-strongly-this-year-and-next-reflecting-its-expanding-role-in-energy-systems-around-the-world#:~:text=Growth%20in%20demand%20in%202024%20and%202025%20is%20forecast%20to%20be%20among%20the%20highest%20levels%20in%20the%20past%20two%20decades%2C%20new%20IEA%20report%20finds%2C%20with%20solar%20PV%20alone%20expected%20to%20meet%20half%20of%20the%20increase

It’s a head-scratcher that the article doesn’t mention natural gas. According to Gemini 2.0 ai, these are currently the sources of energy production in the United States:

The United States utilizes a diverse mix of energy sources to generate electricity. Here’s a breakdown of the primary fuels used:  

Fossil Fuels:

• Natural Gas: This is currently the leading source of electricity generation in the US. It’s relatively abundant and burns cleaner than coal.  
• Coal: While its use has been declining in recent years, coal still plays a significant role in electricity production.  
• Petroleum: A very small percentage of electricity is generated from petroleum, mainly in older plants or during peak demand periods.

Nuclear Energy:

• Nuclear Power: Nuclear power plants provide a substantial portion of the nation’s electricity. They don’t produce greenhouse gas emissions during operation but do raise concerns about nuclear waste disposal and safety.  

Renewable Energy Sources:

• Wind Power: Wind energy has seen significant growth in recent years and is now a major contributor to the US electricity mix.  
• Hydropower: Dams that harness the energy of moving water have long been a source of electricity in the US.
• Solar Power: Both utility-scale solar farms and smaller-scale rooftop solar panels are increasingly contributing to electricity generation.  
• Biomass: This includes burning wood, agricultural waste, and other organic materials to generate electricity.  
• Geothermal: Geothermal power plants use heat from within the earth to produce electricity.  

Here’s a simplified overview of the approximate shares of each energy source in recent years:

• Fossil Fuels (Natural Gas, Coal, Petroleum): Roughly 60%  
• Nuclear: Around 19%
• Renewables (Wind, Hydro, Solar, Biomass, Geothermal): Approximately 21%

It’s important to note that the exact proportions fluctuate from year to year due to various factors, including economic conditions, technological advancements, and government policies.

The trend in the US electricity sector is a shift away from coal towards natural gas and renewable energy sources. This transition is driven by factors like lower natural gas prices, concerns about air pollution and climate change, and the decreasing cost of renewable energy technologies.  

There is a lot of good information there.

One final point to make here is to remember that electric utilities in the United States are regulated. Meaning they are not at leisure to increase prices due to market demands, at least without seeking governmental approval first if it exceeds a threshold they have already been granted.

There is so much to discuss about the state of electricity needs and production here in the U.S. and abroad, which I plan on talking about in future posts. As a world, we are just getting started on really focusing our attention on electricity again.