The discovery of electricity was possibly the most critical point in human history, and it was the catalyst for tremendous advances in human life during the last few centuries, particularly in the last couple of decades. The proper use of electricity was one of the key drivers of the Industrial Revolution in Europe and the United States, which led to them becoming powerhouses and industrial nations, resulting in an increase in the standard of living.
Electricity is now a basic need for everyone as more and more devices go electric. This is one of the main reasons why developing nations struggle to develop their infrastructure because these nations also struggle to raise the standard of living of their citizens. For this reason, developing countries are rarely listed among those with the highest electricity consumption.
And even though electricity is a necessity in today’s world, its production is still the subject of considerable debate. Coal, oil, and natural gas have been the main sources of energy generation over the past couple of centuries. These fuels all contribute to climate change, which is harmful to the environment and one of the biggest concerns for 2023 and the foreseeable future.
Scientists have been warning about the risks of burning fossil fuels for years, but many large oil and gas companies have lobbied against any changes. Exxon Mobil Corporation (NYSE:XOM), one of the world’s largest oil companies, is said to have known about climate change for at least four decades and even allegedly spent millions of dollars spreading false information.
But during the past several years, the effects of climate change have been more apparent all over the world. Unpredictable and severe weather patterns have caused catastrophic events that have cost tens of billions of dollars in damages and hundreds of lives. Governments in industrialized countries, in particular, have established laws in recent years to encourage the use of renewable energy sources in order to reduce reliance on fossil fuels, which is wonderful news for the biggest renewable energy companies by market size.In fact, the IAE predicts that over the next three years, demand for electricity will be dominated by nuclear and renewable energy, which will be expected to supply 90% of total demand, with the vast majority of it coming from China, which is aiming to switch to renewable electricity and become a powerhouse in that industry.
The International Energy Agency (IAE) reports that even though energy prices reached record highs in 2022 as a direct result of Russia’s invasion of Ukraine and the imposition of Western sanctions on Russia, the world’s demand for electricity actually significantly decreased during that year. Even though electrification of major infrastructure, including in the heating and transportation sectors, continues to grow and countries that have electrified their infrastructure also rank highly in terms of electricity consumption by country, the average growth rate for electricity demand fell to 2% in 2022 from 2.4% in 2014 to 2019. The world’s rapidly expanding electric vehicle industry represents another significant source of energy demand. While Tesla, Inc. (NASDAQ:TSLA), the most profitable automaker in the world, is recognized as one of the industry’s forerunners in the development of electric cars, many other major corporations, including Volkswagen, the largest automaker by revenue, have announced significant shifts toward the production of conventional cars as the sector works to reduce its carbon footprint and achieve carbon neutrality in the decades to come.
India and the U.S., where demand is still increasing, are the two main global drivers of energy demand. The IAE claims that while demand for electricity increased in both India and the US, China’s expansion was hampered by COVID regulations. The impact of China’s zero-COvid policy on its economy in 2022 was significant, and there is still some uncertainty over the rate of the country’s power demand increase. We presently project it to be 2.6% in 2022, which is significantly less than its pre-pandemic average of about 5% in the years between 2015 and 2019. Clearer information on China’s patterns in 2022 will be provided by additional data, which is anticipated in due course. These trends may have an impact on the overall picture. Due to a combination of its strong post-pandemic economic rebound and extraordinarily high summer temperatures, India’s electricity demand increased by an impressive 8.4% in 2022. In 2022, the demand for energy in the United States increased significantly by 2.6% year over year, driven by economic activity and higher household use to fulfill heating and cooling needs during hotter summers and colder-than-average winters. This should be good news for the nations with the highest electricity usage as well as some of the largest electrical firms in the United States, such as NextEra Energy, Inc. (NYSE:NEE) and PG&E Corporation (NYSE:PCG).
In addition to producing electricity from other renewable energy sources, NextEra Energy, Inc. (NYSE:NEE) is currently the largest solar company in the world. In 2023, during the company’s Q1 2023 earnings call, CFO Kirk Crews said, “This quarter, we put into service about 970 megawatts of new low-cost solar. With a nearly 4,600 megawatt owned and operated solar portfolio, FPL has the largest solar portfolio of any utility in the nation. Although it only makes up around 5% of the electricity delivered by FPL, we think solar is now the least expensive alternative for Florida customers. Nearly 20,000 megawatts of new solar energy are now included in FPL’s recently filed 10-year site plan in order to increase the benefits of low-cost solar to customers. Energy Resources, a global leader in renewable energy and battery storage, is laser-focused on implementing a strategy to decarbonize the power sector and assist businesses and industries outside of the power sector in lowering their energy costs and decarbonizing their operations by switching to affordable renewable energy and other clean energy options. Energy Resources increased the backlog of its renewable energy and storage projects this quarter by around 2,020 megawatts. In order to support the expansion of our RNG business, Energy Resources recently completed the previously announced acquisition of a sizable portfolio of operational landfill gas-to-electric facilities.
Although several nations export excess electricity, there is a significant mix between the nations with the highest electricity generation and consumption. Of course, industrialized countries are the biggest consumers of electricity since it is readily available everywhere, whereas in developing countries, there is still a significant supply and demand imbalance, particularly in rural areas but frequently also in urban areas. Furthermore, developed countries have a higher availability of electric vehicles, which consume a sizable amount of electricity. We used data from Enerdata to rank the countries based on their expected power consumption in TWh for 2020 and 2021, giving the latter a 70% weighting.
1. China
Consumption in 2020: 7,028 TWh
Consumption in 2021: 7,714 TWh
China easily tops the list of the top 20 countries with the biggest power usage, accounting for about 35% of global consumption. China’s non-fossil fuel energy capacity now exceeds more than half of overall output capacity, according to the country’s main media agency. The State Grid Corporation of China is the country’s largest power company.
2. United States of America
Consumption in 2020: 3,803 TWh
Consumption in 2021: 3,869 TWh
The electrical market in the United States is still dominated by fossil fuels, although it is home to NextEra Energy, Inc. (NYSE:NEE), the world’s largest renewable energy firm. According to the New York Times, the United States’ electric system is not now prepared to switch to renewable energy, owing to the fact that there are three U.S. networks..
3. India
Consumption in 2020: 1,294 TWh
Consumption in 2021: 1,355 TWh
While India’s electric sector is expanding at a strong rate year on year, and while the government is attempting to encourage renewable energy resources, including a massive hydropower project near the country’s border with China, the country’s electricity sector is still dominated by fossil fuels.
4. Russia
Consumption in 2020: 909 TWh
Consumption in 2021: 963 TWh
Russia’s invasion of Ukraine has caused an energy crisis throughout Europe and has targeted Ukraine’s power sources. However, its own electricity usage is increasing and it is easily among the countries with the highest electricity use.
5. Japan
Consumption in 2020: 928 TWh
Consumption in 2021: 916 TWh
Japan is one of the most technologically advanced countries in the world, and technological growth necessitates a lot of electricity. The government has pledged to achieving carbon neutrality by 2050, but in order to do so, it must expand its reliance on wind and solar energy for electricity generation.
6. Brazil
Consumption in 2020: 533 TWh
Consumption in 2021: 579 TWh
Brazil, Latin America’s largest energy consumer, has set a decade high in clean electricity consumption as fossil fuel consumption continues to plummet. The main driver of this huge improvement is increased energy output from wind and solar energy resources.
7. Canada
Consumption in 2020: 561 TWh
Consumption in 2021: 562 TWh
Canada’s electricity usage may have remained about the same from 2020 and 2021, but it remains one of the world’s largest electricity consumers. Because of the country’s recent record number of wildfires, the ensuing smoke has lowered solar power generation by 50% in the United States’ Northeast.
8. South Korea
Consumption in 2020: 527 TWh
Consumption in 2021: 533 TWh
Despite several enviable indicators, South Korea still generates two-thirds of its electricity from fossil fuels, despite the fact that non-hydro renewable resources are the fastest growing power generation source. However, much more needs to be done to raise the country’s share of renewable energy output.
9. Germany
Consumption in 2020: 490 TWh
Consumption in 2021: 503 TWh
Germany, the European Union’s largest electricity consumer, is also a significant industrial nation, which explains why its electricity consumption is so high. According to Reuters, the country recently surpassed China as the second most appealing investment opportunity for renewables.
10. France
Consumption in 2020: 420 TWh
Consumption in 2021: 441 TWh
According to an RTE survey, France’s power usage, which is now among the highest in the world, is predicted to climb at a rapid pace by 2030. The great bulk of electricity produced in the country is generated by nuclear power, which is a contentious issue in and of itself.
11. Saudi Arabia
Consumption in 2020: 308 TWh
Consumption in 2021: 321 TWh
Saudi Arabia, one of the world’s richest countries due to its huge oil reserves, is understandably almost totally dependent on fossil fuels for electricity production, with approximately 90% of its output derived from fossil fuels.
12. Italy
Consumption in 2020: 284 TWh
Consumption in 2021: 300 TWh
According to a study undertaken by climate change thinktank ECCO, Italy will need to add about 190 GW of renewable energy capacity by 2035 if it is to meet its G7 commitment to achieve almost net-zero power systems within the next decade.
13. United Kingdom
Consumption in 2020: 289 TWh
Consumption in 2021: 293 TWh
While the United Kingdom’s power usage is currently high, it is expected to rise further as the Scottish and Southern Energy Network has pledged to invest $12.5 billion in its networks in Scotland to improve production.
14. Iran
Consumption in 2020: 277 TWh
Consumption in 2021: 299 TWh
While Iran has suffered greatly as a result of Western sanctions in recent decades, it is now a significant electricity exporter, recently signing a deal with Pakistan to power Gwadar, and Iraq recently agreed to pay $2.76 billion to Iran to settle its electricity and gas debts.
15. Mexico
Consumption in 2020: 282 TWh
Consumption in 2021: 291 TWh
Mexico has vowed to source 35% of its electricity from low-carbon sources by 2024, although this goal is unlikely to be met. However, the country has made strides in wind and solar energy, with its President soliciting large amounts of foreign investment for massive renewable energy projects.
16. Turkey
Consumption in 2020: 263 TWh
Consumption in 2021: 284 TWh
Turkey’s rapid population and economic growth has resulted in a surge in energy demand, with power consumption increasing by more than 450% since 1990.
17. Indonesia
Consumption in 2020: 257 TWh
Consumption in 2021: 270 TWh
Indonesia’s electricity consumption climbed by more than 6% in 2022, following a robust gain in 2021. A substantial percentage of this development can be attributed to the return of economic activities following the Covid-19 pandemic, elevating it to the list of countries with the largest electricity usage.
18. Taiwan
Consumption in 2020: 256 TWh
Consumption in 2021: 260 TWh
Taiwan’s per capita electricity usage is three times that of Asia, yet it has lately had to raise its electricity rate, which will have a severe impact on its industries.
19. Australia
Consumption in 2020: 239 TWh
Consumption in 2021: 238 TWh
El Nio, a phenomenon in which temperatures soar to record levels, is expected to occur this year, potentially disrupting electricity supply for Australians as high temperatures drive increased demand.
20. Spain
Consumption in 2020: 227 TWh
Consumption in 2021: 233 TWh
Spain experiences some of the highest temperatures in Europe, resulting in increased electrical demand. The country has agreed to implement a new electricity tariff aimed at minimizing price increases.
