Global energy systems face rising electrification and supply security shifts

Global energy systems are undergoing significant shifts driven by supply security concerns and rapid electrification. According to the Rystad Energy Global Energy Scenarios 2026 report, global dependence on energy imports could peak in 2034. Geopolitical conflicts, including the war in Ukraine and tensions in the Middle East affecting the Strait of Hormuz, have forced major structural changes. For instance, Europe has reduced its reliance on Russian gas from 36% in 2021 to an estimated 7.5% by 2025, while US liquefied natural gas (LNG) imports have risen from 6% to 21%.

Simultaneously, electricity demand is accelerating. The International Energy Agency (IEA) indicates that in 2025, electricity demand is projected to grow approximately 2.3 times faster than total energy demand. Experts from DWS identify four primary drivers for this trend: transport, buildings, industry, and digital sectors. While the expansion of clean energy facilitates this transition, electrical grids are increasingly becoming a bottleneck. Key factors include the rise of electric vehicles, the use of heat pumps in buildings, and the massive power requirements of AI-driven data centers.