Dr Fatih Birol highlighted the growth of electrification at IE Week. (Image source: Alain Charles Publishing)

Giving a keynote address on 25 February at International Energy Week in London, hosted by the Energy Institute, Dr Fatih Birol, executive director of the International Energy Agency (IEA) highlighted the soaring growth in electricity demand and its implications

“We are entering an important new chapter in the history of energy, where electricity is going to be even more important,” he said. “When we look at the numbers, we see the age of electricity is coming.”

Dr Birol pointed out that in the last 10 years global energy demand has increased – but global electricity demand has increased two and a half times higher. In the next 10 years, global electricity demand will increase six times more than global energy demand.

The biggest driver of this demand growth is the increase in air conditioning, set to increase further as incomes and temperatures rise. Growth is also coming from manufacturing, with processes becoming more electrified, and electric vehicles, with one in five cars globally being electric in 2024 compared with one in 25 five years ago. AI and data centres are also a major source of demand, with one medium-sized data centre consuming as much electricity as 100,000 homes.

“This is why we see the age of electricity coming – and it has many implications,” he said.

Constraints to growth

Addressing the constraints, Dr Birol said grids are a major bottleneck, with permitting and licensing processing being an issue. “Last year we saw 7 GB of renewables added to the global power system, the biggest in history, but 1,600 GW in renewables waiting in the queue to be connected. This is economically a criminal story.”

He also noted the bottleneck in terms of manufacturing capacity of electrical components. “If you want to buy a cable, especially a DC cable, you have to wait four years, for transformers, five years,” he noted.  

A second issue is electricity pricing, “very important for the competitiveness of any economy. It’s crucial that governments have the right pricing system. Having the right taxes and subsidies is extremely important. In Europe, electricity prices today are two times higher than before the energy crisis. We need the right diagnosis and the right cure so that economies and citizens are not hit by high electricity prices, a key indicator of whether a country can be economically competitive in the future.”

Another issue is the skyrocketing demand for copper, with a major supply deficit predicted by 2035. “The availability and affordability of copper can be a serious issue in the age of electricity.”

Fourthly, nuclear power is making a strong comeback around the world, driven by energy security concerns. “By 2025 we expect global nuclear electricity generation to be the highest in history,” Dr Birol said, noting that 70 GB of nuclear power plants are under construction, the highest amount in the last three decades, with more than 40 countries having firm plans to expand their nuclear capacity. “By around 2030 we may see commercial SMRs hitting the market,” he added.

Concluding, Dr Birol said, “We are seeing the global economy is being electrified in a rapid sense, mainly driven by emerging countries, but advanced economies are also part of it, driven by traditional as well as new sectors such as AI and electric vehicles. It will not be easy to address all the challenges that the new age will bring. Countries and companies who read what is happening and develop policies and strategies to make the most out of the age of electricity, will have a significant advantage over others in the race of global economic competition.”

These projects will strengthen Egypt’s energy infrastructure. (Image source: AMEA Power)

AMEA Power, one of the fastest-growing renewable energy companies, has signed Capacity Purchase Agreements (CPAs) with the Egyptian government to develop the country’s first standalone battery energy storage systems (BESS).

The projects, with a combined capacity of 1,500MWh, include a 500MWh BESS facility in Zafarana and a 1,000MWh BESS project in Benban.

The agreements were signed by Eng. Mona Rizk, Chairperson of the Egyptian Electricity Transmission Company (EETC), and Aqueel Bohra, Chief Investment Officer at AMEA Power, in the presence of Dr. Mahmoud Esmat, Egypt’s Minister of Electricity and Renewable Energy, alongside key representatives from both organisations.

North African market

These landmark projects will play a crucial role in strengthening Egypt’s energy infrastructure, enhancing grid stability, and supporting the integration of renewable energy sources into the national grid.

AMEA Power has been instrumental in advancing Egypt’s clean energy transition, with investments exceeding US$3bn across solar, wind, and battery storage projects.

With the addition of these BESS installations, the company’s total renewable energy capacity in Egypt now stands at 2,500MW of wind and solar projects and 2,400MWh of battery storage.

AMEA Power remains committed to driving socio-economic development through local community partnerships.

The company will implement community investment and development programmes designed to create long-term, positive social impact in the regions where it operates.

Hussain Al Nowais, chairman of AMEA Power, said, “This agreement marks a transformative moment in our journey to power a sustainable future for Egypt. By deploying advanced battery storage solutions, we are not only strengthening the country’s energy infrastructure but also paving the way for a more resilient and decarbonised power sector. AMEA Power is fully committed to accelerating Egypt’s clean energy ambitions through innovative, large-scale renewable projects that drive economic growth, create jobs, and deliver lasting environmental benefits.”

Uptown Dubai is a smart, mixed-use district. (Image source: Empower)

Emirates Central Cooling Systems Corporation PJSC (Empower) has signed an agreement with Dubai Multi Commodities Centre (DMCC) to supply 24,675 refrigeration tons (RT) of environmentally friendly district cooling services to the next phase of Uptown Dubai.  

Uptown Dubai is a smart, mixed-use district, featuring eight planned towers along with retail, dining, luxury hospitality, and sustainable community spaces.

Following the successful completion of Uptown Tower, the next phase will introduce two grade A commercial towers. Strategically located at the southern end of the city, the district offers seamless access to Dubai’s key landmarks and business hubs.

Protecting the environment

Empower’s JLT District Cooling project, which serves the area, consists of four plants—three of which are currently operational—with a total designed capacity of 152,000 RT.

These plants are integrated with advanced infrastructure, smart production systems, and a comprehensive pipeline network, ensuring efficient cooling solutions for current and future developments.

The expansion reinforces Empower’s commitment to sustainable and high-performance district cooling, bolstering investor and developer confidence in its environmentally friendly services.  

H.E. Ahmad Bin Shafar, CEO of Empower, emphasised the significance of the partnership, stating, "We are proud to sign this agreement with DMCC to supply the next phase of Uptown Dubai with environmentally friendly district cooling services. This partnership reflects our commitment to providing innovative and sustainable district cooling solutions that help reducing carbon emissions and support the UAE’s national sustainability goals."

He added that Empower is currently serving the first phase of the project, including the iconic Uptown Tower, with environmentally friendly district cooling services, delivering a cooling capacity of 3,850 RT in compliance with international standards.

Ahmed Bin Sulayem, executive chairman and CEO, DMCC, said, "One year ago, we broke ground on Phase 2 of Uptown Dubai, marking a major milestone in the district’s development with the construction of two premium commercial towers. With new residential towers announced and the imminent launch of the Atrium, Plaza, and vibrant F&B offerings, Uptown Dubai is rapidly taking shape as a world-class destination. Our partnership with Empower is a crucial step in this journey, ensuring the seamless delivery of sustainable cooling solutions that both support our vision for a smart urban community and enhance the quality of life for our residents and visitors."

Only 9% of hydrogen projects have reached FID. (image source: Adobe Stock)

A new report from the UK’s Energy Industries Council (EIC) finds that energy industry confidence in reaching global net-zero targets is declining sharply, with policy instability, financial uncertainty and slow project approvals cited as obstacles to progress

Only 16% of senior energy executives interviewed for the EIC’s Net Zero Jeopardy Report II now believe the world can achieve net zero by 2050, down from 45% last year, with growing concerns over the lack of clear regulatory frameworks, underinvestment in clean technologies and delays in bringing projects to the final investment decision (FID) stage. Only 14% of respondents believe their country will meet 2030 climate goals, down from 16% in last year’s report. Globally, 5% believe interim targets will be met, compared to 11% a year ago.

A key issue is financing, with investors cautious about backing new clean technologies, particularly in sectors such as hydrogen, carbon capture and storage, and grid infrastructure. Executives say that while the private sector is willing to invest, the absence of long-term, stable policies creates financial risk.

The report points out that rates for clean energy projects remain very low. Despite ambitious targets, only 10% of offshore wind projects and 9% of hydrogen projects have reached FID, compared to 21% for upstream oil and gas. In the UK offshore wind sector, for example, lengthy permitting processes, grid access constraints and an uncertain investment climate are factors behind the slow pace of new projects moving from planning to construction.

Supply chain vulnerabilities

The report also highlights concern about supply chain vulnerabilities, particularly in clean technology manufacturing and logistics, pointing out that the reliance on China for many renewable energy project components raises concerns about energy security, trade policy, and supply chain resilience. There are also concerns about manufacturing capacity and skills availability.

“The energy industry is facing real challenges in turning pledges into projects,” said Stuart Broadley, EIC CEO. “Business leaders are not seeing the level of policy certainty or investment required to deliver net-zero ambitions. We need a lot of immediate reforms that speed up licensing processing and cut other red tape, ensure consistent policy and regulation, have the right financial incentives.”

“The data leaves no room for optimism—confidence in net-zero targets is collapsing across the energy sector,” said Mahmoud Habboush, author of the Net Zero Jeopardy II report. “Industry leaders are not merely expressing frustration, they are passionately warning about fundamental barriers, including unstable policy, weak investment appetite, and slow project approvals. And these barriers, if left without tackling, will no doubt derail the energy transition.”

“For many, one clear path toward net zero is ensuring that energy projects are commercially viable. For that to happen, work needs to be done on the demand side, including facilitating a regulatory environment conducive to creating demand. This will make banks less apprehensive, and more capital will flow.”