IEA report: Global electrification could reach 33% by 2035

A new report from the International Energy Agency (IEA), requested by Türkiye and Australia to support COP31 discussions, indicates that global electrification could reach 33% by 2035 using currently cost-competitive technologies. This progress would bring the world close to the COP31 target of 35% electrification.

Key findings suggest that an accelerated transition could reduce annual energy import bills for importing nations by over $400 billion and decrease household energy costs by approximately 15%. The report highlights significant potential in the transport sector, where electric vehicles are already reducing oil demand, as well as in residential heating and industrial processes.

To support this transition, the IEA emphasizes the need for massive investment in power grids. Global grid capacity may need to increase by at least 30% by 2035, and modernization must occur 40% faster than in the previous decade. Additionally, digital technologies could unlock up to 330 GW of extra capacity within existing infrastructures.