{"id":67240,"date":"2025-11-13T11:07:35","date_gmt":"2025-11-13T19:07:35","guid":{"rendered":"https:\/\/energi.media\/?p=67240"},"modified":"2025-11-13T11:07:35","modified_gmt":"2025-11-13T19:07:35","slug":"as-risks-multiply-in-a-world-thirsty-for-energy-diversification-and-cooperation-are-more-urgent-than-ever","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/as-risks-multiply-in-a-world-thirsty-for-energy-diversification-and-cooperation-are-more-urgent-than-ever\/","title":{"rendered":"As risks multiply in a world thirsty for energy, diversification and cooperation are more urgent than ever"},"content":{"rendered":"

This article was published by the International Energy Agency<\/a> on Nov. 12, 2025.<\/em><\/p>\n

\n

In an increasingly complex energy security context spanning a wide range of fuels and technologies, the World Energy Outlook 2025 identifies key choices, opportunities and trade-offs for governments<\/h4>\n<\/div>\n
\n

Countries around the world are contending with pressing energy security threats and growing longer-term risks across an unprecedented range of fuels and technologies, thrusting energy into the heart of geopolitical tensions and elevating it as a core issue of economic and national security. In this context, the latest edition of the\u00a0IEA\u2019s World Energy Outlook<\/em>\u00a0underscores the need for governments to pursue greater diversification of supplies and increased cooperation with one another to help navigate the uncertainties and turbulence ahead.<\/p>\n

The\u00a02025 edition of the World Energy Outlook<\/em><\/a>\u00a0(WEO)<\/em>, the most authoritative global source of energy analysis and projections, covers a broad range of trajectories, highlighting different opportunities and vulnerabilities \u2013 but also commonalities. It does this through three main scenarios, none of which are forecasts. Each maps out a distinct energy future, enabling an analysis of the implications of different policy, investment and technology choices for energy security, affordability and emissions.<\/p>\n

Among the many trends common to all the scenarios in this year\u2019s WEO is the world\u2019s growing need for energy services over the coming decades \u2013 with demand rising for mobility; for heating, cooling, lighting and other household and industrial uses; and increasingly for data and AI-related services.<\/p>\n

In particular, a group of emerging economies \u2013 led by India and Southeast Asia and joined by countries in the Middle East, Africa and Latin America \u2013 comes to increasingly shape energy market dynamics in the years ahead. Collectively, they take up the baton from China, which accounted for half of global oil and gas demand growth and 60 per cent of electricity demand growth since 2010, although no country or group of countries comes close to replicating China\u2019s energy-intensive rise.<\/p>\n

Amid these shifts, traditional energy risks affecting the security of oil and gas supply are now accompanied by vulnerabilities in other areas, most visibly in supply chains for critical minerals due to high levels of market concentration. A single country is the dominant refiner for 19 out of 20 energy-related strategic minerals, with an average market share of around 70 per cent. The minerals in question are vital for power grids, batteries and EVs, but they also play a crucial role in AI chips, jet engines, defence systems and other strategic industries. Geographic concentration in refining has increased for nearly all key energy minerals since 2020, and particularly for nickel and cobalt. Analysis in this year\u2019s WEO of the pipeline of announced projects suggests that reversing this process is set to be slow, calling for stronger action by governments.<\/p>\n

\u201cWhen we look at the history of the energy world in recent decades, there is no other time when energy security tensions have applied to so many fuels and technologies at once \u2013 a situation that calls for the same spirit and focus that governments showed when they created the IEA after the 1973 oil shock,\u201d said\u00a0IEA Executive Director Fatih Birol. \u201cWith energy security front and centre for many governments, their responses need to consider the synergies and trade-offs that can arise with other policy goals \u2013 on affordability, access, competitiveness and climate change. The World Energy Outlook\u2019s scenarios illustrate the key decision points that lie ahead and, together, provide a framework for evidence-based, data-driven discussion over the way forward.\u201d<\/p>\n

Electricity is at the heart of modern economies, and electricity demand grows much faster than overall energy use in all scenarios in\u00a0WEO-2025<\/em>. Investors are reacting to this trend: spending on electricity supply and end-use electrification already accounts for half of today\u2019s global energy investment. For the moment, electricity accounts for only about 20 per cent of final energy consumption globally, but it is the key source of energy for sectors accounting for over 40 per cent of the global economy and the main source of energy for most households.<\/p>\n

\u201cAnalysis in the\u00a0World Energy Outlook<\/em>\u00a0has been highlighting for many years the growing role of electricity in economies around the world. Last year, we said the world was moving quickly into the Age of Electricity \u2013 and it\u2019s clear today that it has already arrived,\u201d Dr Birol said. \u201cIn a break from the trend of the past decade, the increase in electricity consumption is no longer limited to emerging and developing economies. Breakneck demand growth from data centres and AI is helping drive up electricity use in advanced economies, too. Global investment in data centres is expected to reach $580 billion in 2025. Those who say that \u2018data is the new oil\u2019 will note that this surpasses the $540 billion being spent on global oil supply \u2013 a striking example of the changing nature of modern economies.\u201d<\/p>\n

A pivotal issue for energy security in the Age of Electricity is the speed at which new grids, storage and other sources of power system flexibility are put in place. For the moment, some of these elements are lagging. Investments in electricity generation have charged ahead by almost 70 per cent since 2015, but annual grid spending has risen at less than half that pace.<\/p>\n

Although the pace varies across the different WEO scenarios, renewables grow faster than any other major energy source in all the scenarios, led by solar PV. Notably, fresh analysis for the\u00a0WEO-2025<\/em> maps the new geography of demand onto the distribution of global energy resources, showing that, by 2035, 80 per cent of global energy consumption growth occurs in regions with high-quality solar irradiance. Another common element across scenarios is the revival of fortunes for nuclear energy, with investment rising in both traditional large-scale plants and new designs, including small modular reactors. After more than two decades of stagnation, global nuclear power capacity is set to increase by at least a third by 2035.<\/p>\n

In\u00a0WEO-2025<\/em>, all the scenarios indicate ample global supplies of oil and gas in the near term. Oil markets already reflect this, with today\u2019s geopolitical fragility coexisting with oil prices in the $60-$65 per barrel range. A similar easing of market balances for natural gas appears imminent, as new projects for liquefied natural gas (LNG) exports come online.<\/p>\n

Final investment decisions for new LNG projects have surged in 2025, adding to the expected wave in natural gas supply in coming years. Around 300 billion cubic metres of new annual LNG export capacity is scheduled to start operation by 2030, leading to a 50 per cent increase in available global LNG supply. Around half the new capacity is being built in the United States, and a further 20 per cent in Qatar. Natural gas demand has been revised up in this year\u2019s WEO, but questions still linger about where all the new LNG will go.<\/p>\n

Easing near-term market balances for oil and gas are no cause for complacency, the report notes. Both markets remain exposed to geopolitical risks, and faster demand growth \u2013 in response to weaker energy transition policies or lower prices \u2013 could quickly erode what buffers they have.<\/p>\n

In two critical areas of longstanding WEO analysis, the world is falling short on the goals it set for itself: universal energy access and climate change. Around 730 million people still live without electricity, and nearly 2 billion rely on cooking methods that are detrimental to human health. A new scenario in\u00a0WEO-2025<\/em>\u00a0outlines a country-by-country pathway to reaching universal access to electricity in 2035 \u2013 and to clean cooking in 2040, with liquid petroleum gas (LPG) playing the biggest role.<\/p>\n

With climate risks rising,\u00a0WEO-2025<\/em>\u00a0shows the world surpassing 1.5\u00b0C of warming in any scenario, including those with very rapid emissions reductions. The energy sector will need to prepare for the security risks brought by higher temperatures, but there is still scope to avoid the worst climate outcomes. The updated scenario in which the world reaches net zero emissions by mid-century brings temperatures back below 1.5\u00b0C in the long term.<\/p>\n

At the same time, energy systems around the world are contending with the impacts of climate change today, underscoring the urgent need to build greater resilience to rising weather-related risks, as well as to cyberattacks and other malicious activity. New data analyzed in this year\u2019s WEO shows that disruptions to critical energy infrastructure in 2023 affected more than 200 million households around the world. Power lines proved particularly vulnerable, with transmission and distribution grid damages accounting for about 85 per cent of incidents.<\/p>\n<\/div>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

This article was published by the International Energy Agency on Nov. 12, 2025. In an increasingly complex energy security context spanning a wide range of fuels and technologies, the World Energy Outlook 2025 identifies key [Read more]<\/a><\/p>\n<\/div>","protected":false},"author":6,"featured_media":67243,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[1],"tags":[103,14,2586,565,2995],"class_list":{"0":"post-67240","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-electricity","9":"tag-featured","10":"tag-grid-security","11":"tag-iea","12":"tag-weo-2025"},"acf":[],"yoast_head":"\nenergy - Thoughtful Journalism About Energy's Future<\/title>\n<meta name=\"description\" content=\"Among the many trends common to all the scenarios in the IEA's WEO is the world\u2019s growing need for energy services over the coming decades.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energi.media\/news\/as-risks-multiply-in-a-world-thirsty-for-energy-diversification-and-cooperation-are-more-urgent-than-ever\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"energy - 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