"Provisional figures for 2025 show electricity consumption rose by 3 per cent, the fastest annual increase since 2001, according to analysis by Imperial College London for Drax Electric Insights. It is the first time the UK has recorded two consecutive years of demand growth since 2002-03. Electricity use reached an estimated 273 terawatt-hours (TWh) this year, up from 266 TWh in 2024 and 262 TWh in 2023."
""Electric vehicles, heat pumps and the data centres powering AI are now pushing up electricity demand." The rise reflects rapid electrification across transport, heating and digital infrastructure. Installations of heat pumps increased by around 20 per cent in 2025, while electric vehicle sales jumped 28 per cent, with roughly one in three new cars sold now electric. Power demand from data centres, fuelled by artificial intelligence, is also accelerating."
Electricity consumption in Britain rose by 3% in 2025 to an estimated 273 TWh, marking the second consecutive year of growth after two decades of decline. Demand had peaked at 347 TWh in 2005 and then fell as appliances became more efficient and heavy industry declined. Rapid electrification across transport, heating and digital infrastructure is driving the increase: heat pump installations grew about 20% in 2025 and electric vehicle sales jumped 28%, with roughly one in three new cars now electric. Power demand from AI-driven data centres has doubled since 2020 and now accounts for about 3–4% of consumption, with projections that it could exceed 10% within a decade. The Climate Change Committee warned electricity demand may need to at least double by 2050 to meet decarbonisation targets, underpinning government plans to expand generation capacity and upgrade the national grid at significant cost.
Read at Business Matters
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