Can the World Hit 35% Electrification by 2035?

The ongoing conflict between the United States and Israel in Iran has sparked an energy crisis that may help the world reach a milestone of 35 percent electrification by 2035. This target is a key agenda item for the upcoming COP31 United Nations climate conference in Antalya, Turkey, scheduled from November 9 to 20, 2026. Experts believe that recent developments, such as the disruption of oil and gas supplies due to the closure of the Strait of Hormuz, have brought this goal closer to reality.

According to a report by the International Energy Agency, electricity could potentially and economically make up 33 percent of the world's final energy consumption by 2035, up from the present 23 percent. This increase in electricity use is happening at a faster rate than the overall energy demand, with electricity demand growing by more than 3 percent annually between 2015 and 2025.

The report also highlights that as the world enters the "Age of Electricity," the shift towards greater reliance on electricity can bring numerous benefits, including enhanced economic competitiveness, improved energy security, and accelerated transitions to cleaner energy sources.

The energy price crisis resulting from the Iran conflict has prompted a global push towards electrification, particularly in countries that depend on imported fossil fuels. Nations are increasingly turning to alternative energy sources like nuclear and solar power to reduce their reliance on imported energy and build domestic energy resources.

Countries such as the Philippines, Indonesia, Cambodia, and Malaysia have seen a surge in rooftop solar adoption due to market fluctuations caused by the Strait of Hormuz closure. Renewable energy sources, such as wind and solar, are becoming more dependable and less vulnerable to geopolitical risks, making them an attractive option for developing economies.

While the war in Iran has accelerated this trend, the developing world has been actively embracing electrification for some time, thanks to the influx of affordable clean energy technologies from China. Several countries, including Brazil, Chile, El Salvador, Morocco, Kenya, and Namibia, have surpassed the United States in their clean energy transitions by 2025. These nations now source more than 60 percent of their power generation from solar energy, outpacing the world's largest economy.

The expanding energy production, driven by both electrification and clean energy, is crucial to meet the growing demand in developing countries over the coming decades. According to a report by S&P Global, emerging economies could boost the world's total energy demand by more than 60 percent by 2060, approximately equivalent to adding another China to global consumption.

While total energy demand growth cannot be entirely met through electrification alone, it can significantly decrease nations' oil and gas imports and generate substantial savings for countries in the process. The International Energy Agency estimates that if countries intensify their efforts in electrification, they could save over $400 billion by 2035 while simultaneously helping to mitigate the worst climate change impacts.