IEA Special Report Finds 33% Global Electrification Rate Achievable by 2035

The International Energy Agency released its Special Report on Global Electrification on September 22, 2026, finding that electricity could cost-effectively meet 33% of the world’s final energy consumption by 2035, up from 23% today. The IEA global electrification report was prepared at the request of Turkiye and Australia, the COP31 presidency, to inform discussions on a proposed global target of 35% electrification by 2035, and was released at the IEA-COP31 High-Level Energy Transition Dialogue held in New York during the UN General Assembly.

The report finds that reaching 33% cost-effectively with technologies available today would put the 35% goal, known as “35×35,” within what the IEA calls striking distance. Energy prices at their current elevated levels, driven by the Strait of Hormuz crisis, would make even more of the world’s energy consumption cost-effective to electrify than the baseline 33% figure captures, according to the agency.

Energy security and emissions findings

Global electricity use has grown faster than economic output in recent years and nearly twice as fast as overall energy demand, driven by air conditioning, data centers, advanced manufacturing and electric vehicles, the IEA reported. In a scenario where fuel-importing countries accelerate electrification, their combined energy import bills could fall by more than $400 billion by 2035 compared with 2025 levels, and the world could use 18 million fewer barrels of oil per day than it otherwise would, mainly due to electric vehicle uptake.

The report also ties faster electrification to emissions reductions. In the faster-electrification scenario, carbon dioxide emissions from transport, buildings and industry – which together account for more than half of all energy-related CO2 emissions – fall by 40% by 2035, a pace the IEA says is aligned with international climate goals. Investment in electricity supply and grids is set to reach $1.6 trillion in 2026, rising to $2 trillion when investment tied to end-use electrification, such as EVs and heat pumps, is included.

Source: IEA, “Electrification takes centre stage as Hormuz shock spurs countries to seek to enhance energy security,” September 22, 2026.

Reaction and the road to COP31

Dr Nick Wayth, global director of the World Resources Institute’s Polsky Center for the Global Energy Transition, said in a statement that the report’s timing is significant given that “disruptions around Hormuz and higher energy prices crunching households’ budgets have once again exposed the risks of relying on fossil fuels.” He said electrification “can help deliver” affordable, reliable and secure energy simultaneously, and noted that reaching the 35×35 goal cost-effectively “is already within reach,” but will require faster and more strategic grid capacity expansion, plus storage, efficiency and flexible demand measures to get more from existing infrastructure.

The IEA report cautions that realizing the electrification potential it identifies will require scaling up investment in generation and grids alongside smarter, more flexible power systems, and addressing threats to electricity security such as concentrated supply chains for critical minerals, cybersecurity risks and climate hazards. In many emerging and developing economies, the agency identified specific opportunities including electrifying agricultural water pumps, expanding electric two- and three-wheelers in dense cities, and helping small businesses in sectors like food and textiles use more electricity. The report also flags that policymakers will need to help some households and businesses manage the upfront costs of electrification to ensure its benefits are widely shared.

The report builds on a wider push for grid modernization that Winss Solutions has tracked in other markets, including Australia’s AU$30 million in grid-enhancing technology grants aimed at extracting more capacity from existing infrastructure, and Latvenergo’s expansion of Baltic battery storage and solar capacity.

Background

The International Energy Agency is an intergovernmental organization founded in 1974 and based in Paris, working with member, association and accession countries to shape a secure and sustainable energy future. It produces flagship reports including the World Energy Outlook and Electricity series, alongside special reports commissioned to inform major international negotiations. This report was requested specifically by Turkiye, holder of the COP31 presidency, and Australia, president of COP31 negotiations, to support discussions on a global electrification target as part of the COP31 process. The IEA has increasingly focused its analysis on electrification as a cross-cutting lever for energy security, competitiveness and climate goals, and this special report is intended to give COP31 negotiators a data-backed basis for setting the 35×35 target when talks continue at the summit.

Sources: IEA; World Resources Institute

Featured image: photo by Petr Ganaj on Pexels (free Pexels license).

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Figen Sekin

I specialize in sustainability education, curriculum co-creation, and early-stage project strategy. At WINSS, I craft articles on sustainability, transformative AI, and related topics. When I’m not writing, you’ll find me chasing the perfect sushi roll, exploring cities around the globe, or unwinding with my dog Puffy — the world’s most loyal sidekick.