Worldwide Demand for Electrical Power Booms
From the early 1940s to the present, global electrical power demand has risen by a factor of about 20 times. This increase is expected to continue as economies industrialize, populations grow, and digital technologies further permeate daily life.
What are the factors driving this increased need for electricity? One major factor is rapid development in many parts of the world, especially Asia, particularly in urban areas. Manufacturing demand is also a huge part of this as well.
Rapid Growth is Expected in the Following Areas:
Rise in Electric Vehicles
The global shift toward electric vehicles and deployment of EV charging stations, especially in urban areas, will further add to electricity demand, as more people adopt electric cars, buses, and trucks.
Growth of Data Centers and Digital Infrastructure
The growth of cloud computing, online services, streaming, and the Internet. Data centers—large facilities that house the servers powering these services—are incredibly energy-intensive..
Artificial Intelligence (AI) and Machine Learning
The rise of AI technologies and big data analytics also requires substantial computational power.
Is Solar Part of the Solution?
Here’s how solar energy addresses the challenges of rising electricity needs:
- Unlimited Supply and Widespread Availability: Solar power can deliver in nearly every geographical location or setting.
- Decarbonization: As global electricity demand increases, solar energy can reduce dependence on fossil fuels and counter the massive problems that climate change presents.
- Energy Independence: By relying on domestic solar resources, countries can reduce their dependence on imported fuels, lessening the potential for conflict.
- Scalability and Flexibility: Solar can be designed to produce from small rooftop installations to large utility-scale solar farms.
- Decreasing Costs: Over the past decade, the cost of solar panels and related technology has dropped significantly.
Solar can also work alongside other renewable energy sources, such as wind, hydropower, and geothermal, to create a more stable, reliable energy mix. This diversification of generation sources reduces the risk of power outages and supports grid resilience.
Challenges to Overcome
Despite its many benefits, solar energy still faces a few challenges:
- Intermittency: This is the fluctuation in energy output due to changes in sunlight caused by weather, time of day, or seasons.
- Space Requirements: Solar power can require large areas for panels to generate significant energy, especially at utility scale, which can lead to land use conflicts and environmental concerns.
- Upfront Capital Costs: Solar power can have high upfront costs for equipment, installation, and infrastructure, which can deter investment despite long-term savings from low operating costs and decreasing prices over time.
Sun-Powered Energy is a Crucial Part of Meeting Growing Needs
Solar energy will play a key role in meeting rising global electricity demands due to its abundance, sustainability, and rapidly falling costs. Despite challenges like intermittency, space needs, and upfront expenses, advancements in storage technologies, smart grids, and more efficient solar panels continue to improve reliability and scalability. Solar power’s low operating costs and minimal emissions make it essential for a clean energy future, especially as demand surges from electric vehicles, AI, and data centers. With global support and innovation, solar will be vital in balancing growing power needs while addressing climate and energy security goals.
In the United States, solar continues to prove itself as a key part of any energy strategy. “Solar, now a $60 billion industry, is adding more new capacity to the US grid than any other fuel source amid the largest increase in electricity demand since World War II,” said SEIA President and CEO Abigail Ross Hopper.
The second Donald Trump administration has put up roadblocks to clean energy investment but renewable energy analysts say superior technology and its economic benefits will ultimately prevail. Looking back, the solar industry grew 128% during Trump’s first term, from 2016 to 2020, according to trade body the Solar Energy Industries Association (SEIA). And in 2024, solar was the largest source of electricity generation capacity added to the U.S. grid. However you look at it, solar power is going to continue its growth as a key piece in facing our energy crunch, now and in the future!
Sundance Power Systems is celebrating 30 years of ‘Empowering People with Solar’ in 2025 and we are proud of our work in building solar energy in our region. We look forward to many more years and a bright sunny future for the people of Western North Carolina – and the planet!
