Electrification

Electricity is central to modern life and will become even more so as it expands into transport & heating, replacing internal combustion engines (ICE) & gas boilers [IEA, 2023].  These replacements are generally more efficient, reducing energy demand, and their impact on GHG emissions grows as electricity gen is decarbonized [IEA, 2023].  Electricity renewable gen grew in 2022, continuing its upward trend, led by solar & wind, while new fossil fuel capacity declined [IRENA, 2023].

  

20% (2022); 27% (2030); 50% (2050)

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With significant potential to mitigate emissions and decarbonize energy supply chains, electrification is an important strategy to reach net zero goals.  As more energy end uses become electrified, the share of electricity in total final energy consumption increases in the Net Zero Emissions by 2050 (NZE) Scenario from 20%, in 2022, to over 27%, in 2030, and to over 50% by 2050 [IEA, 2023].

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Installed capacity 

  

Installed capacity wordwide reached about 10.5 TW in 2025, with renewables accounting for about 49% of the global total [IRENA, 2026]:

  

• Non-Renewables                  5.35 TW

• Renewables                          5.15 tW

           

            Solar                                       2.4 TW

            Hydropower                           1.3 TW

            Wind                                       1.29 TW

            Geothermal                            ~15 GW

            Other reneables                    ~1 GW                        ​​

  

Global electricity generation capacity is projected to nearly double over the next three decades, surpassing 30 TW by 2050, depending on the scenario [IEA, 2025].  China’s installed power generation capacity reached approximately 3.89 TW by the end of 2025, up from 2.56 TW in 2022 [RTRS, 2023].

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Electricity demand

 

Global electricity demand increased by 849 TWh (+2.8%) in 2025, broadly in line with the recent historical average [Figure 1].  Clean power sources, led by solar & wind, met all of the increase in electricity demand, resulting in a slight decline in fossil-fuel generation.  Global electricity generation surpassed 31.5 PWh in 2025, with renewables accounting for 33.8% (10,730 TWh) of total generation and surpassing coal for the first time in the modern power system [EMBER, 2026]:

  

Figure 2 shows the global electricity mix from January to June 2022 (in this chart renewables exclude hydroelectric).  Figure 3 shows renewable electricity generation price-competitiveness (2000-2020).  Figure 4 shows Europe renewables electricity target for 2030.  Figure 5 shows the tracking progress of key energy systems by electrification os renewables to achieve the 1.5°C scenario developed by ARENA.  Figure 6 shows the power generation market size.

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Capacity factor

  

Nuclear energy has the highest capacity factor (83% - 2019).  Global weighted-average capacity factor of the others are: geothermal (70%), hydroelectric (50%), thermoelectric (46%), wind (31%), and solar PV (18%) [RENA, 2022].  The main reason for the reduced capacity factor of renewable resources is usually the availability of the energy source: the plant may be capable of producing electricity, but its "fuel" (wind, sunlight, or water) may not be available.  Notable facts include:

  

• Most turbines extract around 50% of the energy from the wind that passes through the rotor area.

• For the same amount of installed capacity, wind produces twice as much electricity as solar PV [AR6, 2023].

• Capacity factor of land based wind in the U.S. ranges from 24% to 56% (36% on average) [CCS, 2022].