In this article, we will be taking a look at the top 20 countries with highest electricity consumption To skip our detailed analysis, you can go directly to see the top 5 countries with highest electricity consumption.
The discovery of electricity has been perhaps the most pivotal moment in human history, and has been the reason behind the significant advancement in human life in the past few centuries, especially in the past couple of decades. The proper usage of electricity was one of the main drivers behind the Industrial Revolution in Europe and the U.S., which led to them becoming powerhouses and industrial nations, which again, resulted in an elevation in the quality of living. Today, with more and more devices becoming electrical, electricity is a basic necessity for everyone, and one of the main reasons behind why developing nations struggle to improve infrastructure, as countries which are unable to meet electricity needs also struggle in improving the standard of living of its residents, which is why developing nations are rarely counted among the countries with the highest electricity consumption.
And while electricity usage is integral in today's world, there is still a lot of controversy on how it's generated. Through the last couple of centuries, electricity generation was primarily through fossil fuels including coal, oil and natural gas, all of which contributes to climate change, which is disastrous for the environment and one of the top risks for 2023, and the foreseeable future as well. While the dangers of fossil fuel burning have been called out by scientists for decades, many major oil and gas companies have lobbied against any changes, with Exxon Mobil Corporation (NYSE:XOM), one of the largest oil companies in the world, having known about climate change around four decades ago, and even allegedly spent millions to promote misinformation.
High-voltage power lines. Electricity distribution station. high voltage electric transmission tower. Distribution electric substation with power lines and transformers.
However, in the last couple of years, the impact of climate change has been felt across the world, with weather patterns being much more unpredictable and severe, leading to catastrophic incidents resulting in the loss of hundreds of lives and tens of billions of dollars in damages. Over the past several years, governments in developed nations in particular have passed legislation to promote the usage of renewable energy resources to become less reliant on fossil fuels, which is great news for the largest renewable companies by market cap. In fact, according to the IAE, nuclear and renewables energy is set to dominate electricity growth demand and over the next three years, and will be expected to meet around 90% of total demand, with the vast majority of it coming from China, which is aiming to transition to renewable electricity and become a powerhouse in that sector.
According to the International Energy Agency (IAE), global demand for electricity slowed down very slightly in 2022 even as energy prices rose to record levels as a direct result of Russia's invasion of Ukraine and ensuring Western sanctions on Russia. While the average growth rate for electricity demand has been 2.4% from 2014 to 2019, it fell to 2% in 2022, even as electrification of major infrastructure including in the heating and transport sections continues to grow, and nations which have electrified their infrastructure also rank highly in terms of electricity consumption by country. Another major area of electrical consumption is in the electric vehicles industry, which is growing at an accelerated pace across the world. While Tesla, Inc. (NASDAQ:TSLA), the most profitable car company in the world, is counted among the pioneers of electric vehicles, many other major companies including Volkswagen, the largest car company by revenue, announcing a major pivot to car vehicles, as the industry attempts to reduce its carbon footprint and become carbon neutral in the coming decades.
Globally, electricity demand is mainly driven by India and the U.S., where demand continues to rise. According to the IAE "Electricity demand in India and the United States rose, while Covid restrictions affected China’s growth. China’s zero-Covid policy weighed heavily on its economic activity in 2022, and a degree of uncertainty remains over the pace of its electricity demand growth. We currently estimate it to be 2.6% in 2022, substantially below its pre-pandemic average of over 5% in the 2015-2019 period. Further data expected in due course will provide greater clarity on trends in China in 2022, which could also have implications for the global picture. Electricity demand in India rose by a strong 8.4% in 2022, due to a combination of its robust post-pandemic economic recovery and exceptionally high summer temperatures. The United States recorded a significant 2.6% y-o-y demand increase in 2022, driven by economic activity and higher residential use to meet both heating and cooling needs amid hotter summer weather and a colder-than-normal winter." This should provide a major boost to some of the biggest electrical companies in the U.S., including NextEra Energy, Inc. (NYSE:NEE) and PG&E Corporation (NYSE:PCG), and also should be good news for the countries with the highest electricity consumption.
NextEra Energy, Inc. (NYSE:NEE) is also the biggest solar company in the world right now, in addition to generating electricity from other renewable energy resources and in 2023, its CFO Kirk Crews, stated in the company's Q1 2023 earnings call "This quarter, we placed into service approximately 970 megawatts of new low-cost solar. Putting FPL's owned and operated solar portfolio at nearly 4,600 megawatts, which is the largest solar portfolio of any utility in the country. We believe solar is now the lowest cost generation option for Florida customers, but represents only about 5% of FPL's delivered energy. In order to extend the benefits of low-cost solar to customers, FPL's recently filed 10-year site plan, now includes nearly 20,000 megawatts of new solar. Energy Resources, the world's leader in renewables and a leader in battery storage, remains laser-focused on executing a strategy of decarbonizing the power sector and helping commercial and industrial customers outside the power sector, reduce their energy cost and decarbonize their operations by moving to low-cost renewables and other clean energy solutions. This quarter, Energy Resources added approximately 2,020 megawatts of new renewables and storage projects to its backlog. Energy Resources also closed on its previously announced acquisition of a large portfolio of operating landfill gas-to-electric facilities, providing the foundation for our growing RNG business."
There is strong mix between the countries that consume the most electricity and countries that generate the most electricity, though several countries export excess electricity. Of course, the biggest electricity consumers are developed nations where electricity is available throughout the country, while in developing countries there is still a major gap between demand and supply especially in rural areas but often in urban areas as well. Also, electric vehicles, which account for a significant portion of electricity consumption, are more readily available in developed nations. For our rankings, we have ranked countries by their electricity consumption in TWh in 2020 and 2021, with 70% weightage assigned to the latter, with data being sourced from Enerdata.
Consumption in 2020: 227 TWh
Consumption in 2021: 233 TWh
Spain sees some of the highest temperatures in Europe, because of which there is higher electricity demand in the country. The country recently agreed to introduce a new electricity tariff which will be aimed at preventing price spikes.
Consumption in 2020: 239 TWh
Consumption in 2021: 238 TWh
El Niño, a phenomenon where temperatures soar to record levels, is likely to occur in this year, which may result in disruption of electricity supply for Australians as high temperatures drive greater demand.
Consumption in 2020: 256 TWh
Consumption in 2021: 260 TWh
Taiwan's electricity consumption per capita is three times higher as compared to Asia's average, but it has had to increase its electricity rate recently which will have a negative impact on its industries.
Consumption in 2020: 257 TWh
Consumption in 2021: 270 TWh
Indonesia's electricity consumption has increased over 6% in 2022, over an already healthy increase in 2021. A large portion of this growth is due to the resumption of economic activities after the Covid-19 pandemic, giving it a place among the countries with the highest electricity consumption.
Consumption in 2020: 263 TWh
Consumption in 2021: 284 TWh
Turkey's fast growth both in terms of population and economy has seen energy demand skyrocket, with its electricity consumption increasing by more than 450% as compared to 1990.
Consumption in 2020: 282 TWh
Consumption in 2021: 291 TWh
Mexico pledged to source 35% of its electricity from low-carbon sources by 2024 though it is unlikely to meet its target. However, the country has made progress in the wind and solar energy area with its President seeking major foreign investment for huge renewable energy projects.
Consumption in 2020: 277 TWh
Consumption in 2021: 299 TWh
While Iran has suffered heavily in the past couple of decades as a result of Western sanctions, it is a major electricity exporter, sealing a deal recently with Pakistan to power Gwadar, while Iraq also recently agreed to pay $2.76 billion to Iran to pay off its electricity and gas debt.
Consumption in 2020: 289 TWh
Consumption in 2021: 293 TWh
While the UK's electricity consumption is quite high already, it is set to increase further as the Scottish and Southern Energy Network has agreed to invest $12.5 billion in its networks in Scotland to increase production.
Consumption in 2020: 284 TWh
Consumption in 2021: 300 TWh
According to a study conducted by climate change thinktank ECCO, Italy needs to add around 190 GW of renewable energy capacity latest by 2035 if it is to meet its G7 obligation to reach nearly net-zero power system by the next decade.
Consumption in 2020: 308 TWh
Consumption in 2021: 321 TWh
One of the richest nations in the world thanks to its massive oil reserves, Saudi Arabia is unsurprisingly almost entirely dependent on fossil fuels for electricity production, with nearly 90% of its production coming form fossil fuels.
Consumption in 2020: 420 TWh
Consumption in 2021: 441 TWh
While its already among the highest electricity consuming countries in the world, France's electricity consumption is set to increase further at a sharp rate by 2030, based on an RTE survey. The vast majority of electricity production in the country comes from nuclear power, which is a controversial topic in and of itself.
Consumption in 2020: 490 TWh
Consumption in 2021: 503 TWh
The highest electricity consuming country in the European Union, Germany is also a major industrial nation which is why its electricity consumption is so high. According to Reuters, the country also recently overtook China to become the second most attractive investment opportunity for renewables.
Consumption in 2020: 527 TWh
Consumption in 2021: 533 TWh
Even though South Korea has achieved many enviable metrics, two-thirds of its electricity generation is still coming from fossil fuels, though non-hydro renewable resources are its fastest growing power generation source. However, much more needs to be done to increase the percentage of renewable energy production in the country.
Consumption in 2020: 561 TWh
Consumption in 2021: 562 TWh
Canada's electricity consumption may have been almost the same between 2020 and 2021, but it's still among the highest electricity consuming countries in the world. Due to the record number of wildfires recently in the country, the resulting smoke has reduced solar power production falling by 50% in the U.S. Northeast.
Consumption in 2020: 533 TWh
Consumption in 2021: 579 TWh
The highest electricity consumer in Latin America, Brazil's clean electricity reached a decade high as its fossil rate consumption continues to fall. Higher energy production from wind and solar energy resources is the main driver behind this significant improvement.
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Disclosure: None. Top 20 countries with highest electricity consumption is originally published Insider Monkey.
