We have entered the age of electricity, “the Age of Electricity” as stated in the recently released Iea (International Energy Agency) report (Electricity 2026). Behind this definition are numbers, trends, investments of great magnitude. But this time the galloping of figures, while impressive, is not enough to restore the epochal impact of what is taking place: the expression the Age of Electricity better restores the epochal sense of the change taking place. We are in the midst of a broad transformation of the production system and the way cities, travel, and daily life are organized. Technological change and cultural change are intertwined, producing new habits that are growing before our eyes.
To grasp the dimension of this challenge is to have more opportunities to influence it: the energy revolution is underway, but we can steer its development in one direction or another. Take advantage of the spread of renewables to create a more decentralized, more horizontal, more equitable energy model. Or block energy communities and try to rebuild new hierarchies that increase social distances.
However, the electricity revolution is pushing forcefully in the direction of energy production decentralization. Energy that will be increasingly needed: the report photographs an electricity system undergoing profound transformation, driven by industry, electric mobility, air conditioning and the explosion of data centers and artificial intelligence.
World electricity consumption is estimated to increase by an average of more than 3.5 percent per year between now and 2030. The growth in electricity demand will be at least two and a half times faster than that of energy as a whole.
The overtaking of renewables
Renewables, driven in particular by photovoltaics, are now on the verge of overtaking coal as the main source of generation globally. By 2025, the two sources are virtually paired, but overtaking is well underway. Nuclear power is also seeing an increase in generation. Electricity from non-fossil sources will overtake fossil by the end of the decade.
However, natural gas continues to grow, especially in the United States and the Middle East, where it is gradually replacing oil and more polluting sources in power generation. Coal, in contrast, is losing ground and is expected to return to 2021 production levels by 2030. The result is that, despite rising demand, global CO₂ emissions related to electricity generation will remain broadly stable over the period considered by the report.
The real critical issue, however, is not so much the ability to generate electricity but to transport and manage it. Today, more than 2,500 gigawatts of new projects-between renewables, storage, and large loads such as data centers-are stranded, remain in the queue to get connected to power grids. That’s a huge drag on the transition, and one that risks slowing investments that are ready to go.
The report points out that modernizing grids, together with the use of efficiency-enhancing technologies and targeted regulatory reforms, could unlock up to 1,600 gigawatts of capacity now “frozen” in the short term. In other words, making better use of existing infrastructure is as important as building new infrastructure.
More accumulation and flexibility for a changing system
With an increasingly weather-dependent generation mix, flexibility becomes a key word. Utility-scale batteries are growing rapidly and already play a decisive role in several markets, from California to Germany, Texas to South Australia to the United Kingdom. They are the ones that ensure system balance during critical hours, compensating for the variability of sun and wind.
But it is not enough. We need smarter networks, active demand management and markets capable of valuing flexibility in all its forms. Technical change, but also political and regulatory change.
Then there is the issue of prices. In many countries, the cost of electricity for households has risen faster than incomes since 2019, while industries and businesses are being impacted by high bills. The challenge for governments is twofold: attracting new investment and, at the same time, ensuring more efficient and affordable systems.
Finally, security. Increasingly complex and digitized networks must contend with aging infrastructure, increasingly frequent extreme weather events, and new threats, including cyber threats. Strengthening the resilience of the electricity system therefore becomes a strategic priority, not only energy but also economic and social.
