Renewables are on schedule to become the largest global source of electricity generation in 2026, overtaking coal after reaching close to parity in 2025, while worldwide electricity demand is expected to accelerate next year, according to a report by the International Energy Agency (IEA), Xinhua reports.

This year, global electricity demand is expected to grow by 3.6%, and by another 3.8% in 2027, after a 3% advance in 2025. Global electricity consumption is projected to reach 30,700 terawatt-hours (TWh) in 2027, from 28,600 TWh in 2025, the Paris-based institution said.

It believes that the current crisis in the Middle East has temporarily increased the cost of electricity production, while emergency energy conservation measures have been introduced in some regions. However, worldwide electricity demand is expected to continue to grow at a faster pace over the next two years.

After reaching near parity with coal in 2025, electricity generation from renewable sources is expected to grow by more than 8% in 2026, overtaking coal as the largest global source of electricity generation. Its share of global electricity generation is expected to rise from 33 percent in 2025 to 37 percent by 2027, the International Energy Agency report said.

Solar power is expected to remain the largest contributor to global electricity supply growth, with output expected to grow by around 600 TWh in 2026, close to the record expansion in 2025, the IEA indicated.

The International Energy Agency is the main energy advisory body of the 29 most developed countries. The agency was established in response to the first oil shock of 1973-1974 to coordinate the release of oil from reserve stocks.