The International Energy Agency (IEA) has warned that global energy security is facing unprecedented and overlapping threats as electricity demand surges, supply chains strain, and the pace of electrification accelerates.
“Energy security is no longer just about oil or gas,” said IEA Executive Director Fatih Birol during the launch of the World Energy Outlook 2025 on Wednesday, November 12.
The agency’s flagship annual report, which examines global demand trends, supply vulnerabilities, and energy transition pathways, broadened its scope this year to include critical areas such as electricity grids, minerals essential to clean energy, and infrastructure resilience, according to Ecofin Agency.
The IEA revealed that electricity demand is now growing at twice the rate of overall energy demand, fueled by the rapid expansion of data centers, artificial intelligence (AI), industrial activity, and economic growth, especially across developing regions in Africa.
Despite these advances, around 730 million people still live without access to electricity, and nearly 2 billion continue to rely on polluting fuels for cooking.
The agency also raised concerns over the heavy concentration of refining capacity for key transition minerals like nickel and cobalt, warning that reliance on a small number of countries poses systemic risks to global clean energy supply chains.
Don’t Miss This:
Nigeria Faces Pressure As South Korea Seals $100 Billion US Energy Deal
According to the report, electricity has become the central pillar of the global energy system as renewable generation expands, nuclear power gains renewed attention, and investment needs for grids, storage, and flexibility grow sharply.
The IEA stated, “production is no longer the only challenge; grid capacity and system integration are becoming strategic priorities.”
It noted that energy demand is increasing far more rapidly in emerging economies such as Southeast Asia, India, Africa, and Latin America than in advanced economies.
The agency cautioned that today’s energy risks are no longer isolated but compounding, with rising electricity demand, supply chain disruptions, climate shocks, and cyber threats creating new vulnerabilities.
“Without diversification and stronger international cooperation, countries will remain vulnerable to supply and price shocks,” the IEA warned, stressing that energy security and climate goals must progress together.
The report outlined three urgent priorities for governments: reducing dependence by diversifying energy sources and technologies, enhancing collaboration on critical minerals, grid systems, and financing, and channeling more investment into electricity infrastructure.
The IEA argued that modernizing power grids, improving regional interconnections, and expanding energy storage are now as vital to energy stability as oil reserves once were.
Concluding its analysis, the agency emphasized that global energy security has entered a new era, one defined not by shortages of oil, but by the strength and resilience of the electricity systems and supply chains that sustain the world’s energy transition.
Don’t Miss This:
Ethiopia Drives East Africa’s Hydropower Boom As Region Pushes For Clean Energy And Exports
Image Credit: IEA
