Global electricity demand is rising sharply, creating opportunities for renewable energy and Net Zero initiatives, while boosting investment in smart grids and emission reduction over the next decade.
According to a recent assessment by energy research firm Rystad Energy, global electricity demand is expected to increase by around 30% over the next ten years. The boom in technologies, including electric vehicles (EVs), artificial intelligence (AI), and the rapid growth of data centers, is putting significant pressure on the global energy system.
The technology boom and the impact of climate change are causing electricity demand to rise rapidly. Data centers serving AI and cloud services consume massive amounts of electricity for operation and cooling. At the same time, the growing popularity of EVs sharply increases charging demand, while prolonged heatwaves lead to higher use of air conditioning. All these factors are placing considerable pressure on the global energy system.
Renewable energy leads global electricity demand
Rystad Energy forecasts that renewable energy will account for about 55% of total global electricity generation by 2035, up sharply from the current 34%. Solar power plays a prominent role due to its low investment costs and flexible deployment across various scales, from households to industrial zones and large-scale solar farms.
Wind power, hydro, and other clean energy sources are also being increasingly invested in by many countries to ensure sufficient electricity supply without relying on fossil fuels.
The fastest growth in electricity consumption this decade
The International Energy Agency’s (IEA) Global Energy Review 2025 shows that global electricity consumption in 2024 increased by 4.3%—nearly double the average annual consumption over the past ten years. IEA Executive Director Fatih Birol stated that the rising demand for electricity is pushing global energy consumption higher, reversing the long-term decline seen in developed economies.
Solving the challenge of rising demand and emission reduction
Although rapid electricity demand growth creates opportunities for clean energy, it also presents significant challenges for achieving Net Zero by 2050.
Wood Mackenzie’s Energy Transition Outlook 2025–2026 points out that the global energy system cannot expand quickly enough to meet the current pace of electrification. According to expert Prakash Sharma, rising electricity demand is putting considerable pressure on the development of clean energy sources and grid infrastructure upgrades. Three major barriers include: enormous investment costs, long project implementation timelines, and geopolitical uncertainties that disrupt the supply chain for renewable energy equipment.
Conclusion
Increasing electricity demand and the need to reduce emissions are forcing businesses to change how they use energy. Investing in renewable energy and electricity management solutions allows companies to save long-term costs, reduce risks from energy price fluctuations, comply with green standards, and move closer to Net Zero goals.
Understanding current energy conditions and anticipating the trend of rising electricity demand, Vietnam has begun implementing renewable energy carbon credit projects with two main objectives: meeting electricity demand and achieving carbon neutrality, in line with Net Zero goals.
CCTPA, a pioneering organization in the ASEAN carbon credit market, develops carbon finance tools to support companies investing in clean energy projects and greenhouse gas inventory platforms to monitor and transparently report emissions. This enables Vietnamese businesses to transition energy effectively, reduce energy cost risks, and directly contribute to the country’s Net Zero roadmap.
Source: VietNamPlus – Rystad Energy: Nhu cầu điện toàn cầu có thể tăng 30% trong 10 năm tới – 01/11/2025 Read more
CARBON CREDIT TRADING PLATFORM ASEAN (CCTPA)
Address: Léman – 20 Truong Dinh, Xuan Hoa Ward, Ho Chi Minh City
Hotline: (+84) 28 6272 5889
Email: info@aseancarboncredit.com
