Electricity

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World electricity demand is expected to increase by an average of 3.4% every year until 2026

Electricity, derived from the flow of electric charge, is vital for numerous aspects of modern life, from work and communication to transport and leisure. Most electricity is produced from fossil fuels in power plants, but low-carbon sources like nuclear and renewables (solar, wind, hydro, biomass) are increasingly contributing to the global generation mix. These efforts aim to mitigate climate change and leverage falling technology costs. Electricity generated is fed into a grid, transmitted over long distances, and distributed regionally to homes and businesses.

Balancing electricity supply with demand is complex, requiring markets to ensure sufficient generation through forward contracts and real-time balancing with flexible measures like dispatchable generation, energy storage, and interconnection. The system is evolving with more intermittent renewables and decentralized generation, creating supply-side disruptions and demand-side uncertainties. Future electricity systems will need enhanced grid roles, greater flexibility, and new business models, increasingly relying on digital technologies.

Discover UK energy professionals' views of the future of electricity, gathered in our annual Energy Barometer.

Search for articles on electric vehicles and the role of electricity in transport published in our New Energy World magazine.

New Energy World stories

Australia orders 7.8 GW of renewables and 7.9 GWh of storage in latest auction

2nd June 2026

Collectively the projects are expected to supply electricity to around four million households by the end of the decade, with much of the capacity del...

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After a year of decline, global clean energy trade rebounded to $479bn in 2025, according to new report

2nd June 2026

Recent geopolitical developments, including the Iran conflict, have contributed to a sharp rise in global fossil fuel prices, disproportionately affec...

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UK energy bills to rise despite growing role of renewables in the electricity system

1st June 2026

UK household energy bills are set to increase from July after regulator Ofgem confirmed the energy price cap will increase by 13% amid higher wholesal...

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High wire act

1st June 2026

The project includes structural maintenance and technical upgrades across 115 steel pylons along the transmission route as part of ongoing grid modern...

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Solid oxide technologies move into real-world industrial energy and off-grid power applications

26th May 2026

Recent announcements from companies including Sunfire, Centrica and Ceres suggest the technology is progressing beyond standalone demonstration projec...

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Technical guidance publications

EI 3308

Assessing the condition and remaining life of underground electrical cables

April 2026

Approaches to assessing the condition of electrical power cables have changed considerably over time. Previously, underground cables were generally le...

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EI 3299

Guidelines on earthing/grounding/bonding in the oil and gas industry

September 2025

This publication brings together the essential requirements relating to earthing/grounding and bonding for installations in hazardous areas in the oil...

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EI 3582

SafetyOn and G+ workshops report: Electrical safe system of work

February 2025

SafetyOn and G+ have been working collaboratively with the EI to enhance safety protocols in the onshore and offshore wind industry through the Safe S...

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EI 3021

Model Code of Safe Practice Part 21: Guidelines for the control of hazards arising from static electricity

June 2024

Essential reading for all those involved in the fuels distribution and supply chain, this document provides up to date guidance on key equipment, proc...

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EI 3564

Guidance on green and low carbon hydrogen production: plant design, construction, operation and maintenance, co-location and other considerations

June 2024

‘Hydrogen economy’ is an umbrella term used to describe the role that hydrogen plays in the broader economy, including as a fuel, as an energy carrier...

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The Energy Institute Statistical Review of World Energy™ analyses data on world energy markets from the prior year.