IEA Report Identified Massive Electrification Potential
The International Energy Agency highlighted how rapid electrification could slash global fuel import bills by 2035.
Updated on Sept. 23, 2026 in Electric Vehicles
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A new International Energy Agency report details how transitioning to electric power in transport, industry, and agriculture could save developing economies over $100 billion annually in fuel costs by 2035. The study notes that 18 million barrels of daily oil demand could be avoided through these accelerated electrification efforts.
Why it matters
Widespread electrification allows developing nations to reduce their reliance on imported fossil fuels, effectively shielding them from volatile global energy price shocks. By modernizing power grids and adopting electric alternatives, these regions can stabilize their economies while improving energy efficiency.
Developing economies could save over $100 billion annually by 2035, while electric two- and three-wheelers can travel 10 times the average daily distance on a single charge. Additionally, 40% of global industrial energy for low- and medium-temperature needs is now cost-effectively electrifiable.
The players
International Energy Agency
This is an autonomous intergovernmental organization that provides analysis and data on the global energy sector.
The details
The report identifies agriculture, textiles, and food processing as key sectors that can replace oil usage with electricity via industrial heat pumps and boilers. By 2035, global electricity consumption is projected to rise from 23% to 33% as nations prioritize grid expansion and electrification across emerging markets.
Timeline
2025 serves as the baseline year for calculating potential fuel import bill reductions.
The report analysis covers the past decade to assess the pace of grid expansion.
Global electrification and grid modernization targets are set through 2035.
Roadmap
This research updates the pathway previously established by the International Energy Agency's Net Zero by 2050 scenario. It signals a shift toward prioritizing electrification in emerging markets as a primary strategy to bypass traditional fossil fuel-heavy industrial development.
For residents in emerging economies, the report suggests that switching to electric two- and three-wheelers can provide significant personal savings, with upfront costs recovered in three to six years. Increased electrification also promises more reliable agricultural and industrial output through modernized energy infrastructure.
The takeaway
The move toward global electrification is as much an economic imperative as an environmental one for fuel-importing nations. Implementing these technologies requires a 40% acceleration in grid modernization to ensure infrastructure can support the projected surge in electricity demand.
Further reading
For more on the shift toward electric power, visit the /automotive/electric-vehicles/ section.
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Do you believe transitioning to electric power will lower long-term energy costs for your household?
