• IEA warns energy security risks rising amid surging demand and weak supply chains

• Electricity, grids, and critical minerals now central to global energy stability

• Calls for diversification, cooperation, and major investment in power infrastructure

The International Energy Agency (IEA) warned that global energy security faces mounting, overlapping risks as demand surges, supply chains weaken, and electrification accelerates.

"Energy security is no longer just about oil or gas," said IEA Executive Director Fatih Birol during the release of the World Energy Outlook 2025 on Wednesday, November 12. The agency’s annual flagship report analyzes global demand trends, supply vulnerabilities, and energy transition scenarios, expanding its focus this year to include electricity grids, critical minerals, and infrastructure resilience.

Electricity and Critical Minerals: New Weak Points

The IEA reported that electricity demand is now growing twice as fast as overall energy demand, driven by the expansion of data centers, artificial intelligence (AI), industrial activity, and economic growth in developing regions, particularly Africa. Yet around 730 million people still lack access to electricity, and nearly 2 billion rely on polluting fuels for cooking.

The agency also warned about the high concentration of refining capacity for key transition materials such as nickel and cobalt, noting that dependence on a handful of countries creates systemic supply risks for components essential to clean energy technologies.

Electricity now sits at the heart of the global energy system, the report said, as renewable capacity expands, nuclear power regains traction in some markets, and investment needs rise sharply for power grids, storage, and flexibility. According to the IEA, “production is no longer the only challenge; grid capacity and system integration are becoming strategic priorities.” The agency added that energy demand in emerging economies, particularly Southeast Asia, India, Africa, and Latin America, is rising much faster than in advanced economies.

Call for Diversification and Cooperation

The IEA said the risks facing the energy sector are no longer isolated but compounding, with supply chain disruptions, surging electricity demand, climate shocks, and cyber threats all making systems more fragile. "Without diversification and stronger international cooperation, countries will remain vulnerable to supply and price shocks," the organization cautioned, emphasizing that energy security and climate goals must advance together.

The report identifies three urgent priorities for governments: reducing dependence by broadening energy sources and technologies, strengthening cooperation on critical minerals, grids, and financing, and redirecting investment toward electricity infrastructure. The IEA argues that upgrading power grids, improving interconnections, and expanding energy storage are now as essential to stability as oil reserves once were.

The agency concludes that the challenge of global energy security has entered a new phase, one defined not by the scarcity of oil, but by the resilience of the electricity systems and supply chains that underpin the energy transition.

Abdel-Latif Boureima