Beginning in the 1990s, rapid industrialization in China led to increased electricity demand for factories and infrastructure.

Now, mass migration to cities and improved living conditions are pushing demand even higher.

This graphic compares electricity demand in China with that of the U.S., EU, and India from 1991 to 2025 (forecasted), measured in terawatt-hours (TWh) according to data from the International Energy Agency (IEA).

Impact of Urbanization

In China, cities have  surpassed the industrial sector to become the largest consumers of energy.

According to estimates by China’s national statistics department, a 1% increase in the urbanization rate leads to a rise in total energy consumption by at least 60 million tons of coal.

Additionally, urban households consume 50% more energy per capita than rural households.

As a result, electricity demand in China is forecasted to reach 10,498 TWh in 2025, compared to 4,475 TWh in the U.S.

Country/Bloc	Forecasted Electricity Demand in 2025 (TWh)
China	10,498
United States	4,475
European Union	2,692
India	1,734

At the bottom of the graphic, India is also showing increasing energy consumption due to impressive economic growth, particularly in the last 10 years.

With the largest population in the world and a heavy reliance on fossil fuels like crude oil, natural gas, and coal, India is taking steps to decouple its economic growth from greenhouse gas (GHG) emissions.

Among these efforts, the government has announced several new initiatives to promote green hydrogen, battery storage, and offshore wind.