AI power demand, grid constraints reshaping global energy system: World Energy Council
Drawing on dialogue with more than 275 senior energy leaders from 65 countries, the council said grids, storage and system integration were the most commonly identified constraints on progress
23 September, 2026
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Rising electricity demand from artificial intelligence, data centres and industrial electrification is colliding with geopolitical disruption and infrastructure constraints, forcing energy systems to navigate increasingly difficult trade-offs over security, affordability and decarbonisation, the World Energy Council said.
The council’s 2026 World Energy Trilemma report, released during Climate Week NYC, said disruption to energy flows through the Strait of Hormuz and growing demand from digital infrastructure were contributing to a broader rebalancing of the global energy system.
The report, titled Rebalancing World Energy: Trade-Offs and Transformations, said the challenge was increasingly shifting from deploying new generating capacity to integrating generation with grids, storage, flexible demand, markets and institutions.
Drawing on dialogue with more than 275 senior energy leaders from 65 countries, the council said grids, storage and system integration were the most commonly identified constraints on progress.
“World energy is being rebalanced in real time. Our World Energy Trilemma report shows how the electrification surge, geopolitical disruption and persistent development gaps are creating harder choices across grids, storage, markets and institutions,” Angela Wilkinson, secretary general and CEO of the World Energy Council, said.
“Integration and interoperability are now critical: connecting the parts of each system and enabling different systems and pathways to work together. Leadership means continuously rebalancing security, affordability and sustainability while keeping sight of what energy is ultimately for — better lives and stronger economies.”
The report identified five recurring tensions: investing for the future while managing current costs; redesigning markets within existing systems; strengthening national competitiveness while maintaining cross-border interdependence; sustaining the pace of energy transitions while retaining public legitimacy; and matching institutional ambitions with available capacity.
In sub-Saharan Africa, around 600 million people still lack access to electricity, with investment in transmission and other infrastructure needed alongside additional generation capacity.
Saudi Arabia is meanwhile targeting renewable sources for around 50 per cent of electricity generation by 2030, increasing the focus on integrating renewable capacity with storage and other sources of flexible generation.
The World Energy Council also cited China as an example of the scale of transmission infrastructure required to connect energy resources with major industrial and population centres. The country has developed nearly 50 ultra-high-voltage transmission projects, while its government has set a target for west-to-east electricity transmission capacity to exceed 420 gigawatts by 2030.
In Brazil, renewable sources accounted for 86.8 per cent of domestic electricity supply in 2025, while increasing curtailment is adding to the need for greater flexibility across generation, storage, markets and demand.
The World Energy Council describes “rebalancing” as continuously reassessing energy security, equity and environmental sustainability as technological, economic and geopolitical conditions change.
Founded in 1923, the council says its network comprises more than 3,000 member organisations with a presence in more than 100 countries.
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