Rising Heatwaves Reshape Global Electricity Demand and Strain Energy Systems

Wednesday 01 July 2026 - 18:00

By: Azzat Manal

Rising Heatwaves Reshape Global Electricity Demand and Strain Energy Systems

Rising global temperatures and increasingly frequent heatwaves are expected to significantly reshape electricity demand worldwide, placing growing pressure on power systems, according to warnings from major financial institutions.

Experts highlight that the surge in extreme heat is directly increasing reliance on cooling systems, particularly air conditioning, which is becoming one of the fastest-growing sources of electricity consumption across both developed and developing economies.

Sarah Kapnick, Head of Climate Research at JPMorgan, warned that intensifying heat extremes will translate into sharply higher global electricity usage. She noted that during heatwaves, electricity grids face sudden and substantial spikes in demand, creating operational challenges for energy providers and raising concerns about system reliability.

She emphasized that electricity availability during extreme weather events is becoming essential not only for economic stability but also for public health and safety, as cooling systems play a critical role in protecting vulnerable populations from heat-related risks.

In separate remarks reported by Bloomberg, Luke Nelson, JPMorgan’s Head of International Sustainability, said that while artificial intelligence is increasingly part of global energy discussions, it is not the primary driver of rising electricity demand.

Instead, he pointed to air conditioning as the dominant factor behind growing consumption, particularly in rapidly urbanizing regions and emerging economies. According to him, cooling demand is expected to outpace other sources of electricity growth, including data centers and digital infrastructure linked to artificial intelligence.

The findings underscore broader concerns about the resilience of global energy systems in the face of climate change, as governments and utilities prepare for sustained increases in electricity demand driven by environmental and demographic pressures.