IEA says electrification offers cost and emissions gains, but barriers remain
The IEA says electricity is increasingly able to offer a combination of lower costs, greater energy security and lower emissions, strengthening the case for electrifying more of the economy. Its director, Fatih Birol, presented this as a shift in the long-standing energy “trilemma”, while researchers cautioned that economic advantages alone will not make the transition happen quickly.
The IEA’s 2025 global averages show that $100 of electricity could power an electric car for 2,310 miles, compared with 862 miles for a petrol car; a heat pump could provide 42 days of heating, against 30 days from a gas boiler. Electricity’s share of end-user energy rose from 16.7% in 2000 to 23.4% in 2025, with China seeing the largest increase and North America among the smallest. Researchers point to obstacles including heavy transport, trade barriers, political choices and the influence of fossil fuel industries.
- Electricity is gaining ground as a lower-cost, cleaner energy option.
- EVs and heat pumps outperformed petrol cars and gas boilers in IEA comparisons.
- Researchers say politics, trade and hard-to-electrify sectors could slow the shift.
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The energy trilemma refers to the long-standing challenge of simultaneously achieving three goals: affordable energy, reliable supply, and environmental sustainability. Policymakers have struggled to balance these priorities, often viewing progress on one as requiring compromise on the others.
Electrification—switching energy use from oil, gas and coal to electricity—is increasingly seen as a way to address this dilemma. The International Energy Agency, which advises governments on energy policy, argues that electricity has become cheap and clean enough to potentially deliver benefits across all three areas, particularly in transport and heating.
However, significant obstacles remain. Heavy transport like shipping and aviation currently lacks viable electric alternatives, whilst trade barriers, political choices and the influence of fossil fuel industries all slow the transition. This means that economic advantage alone may not drive rapid change.
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Originally published by Ars Technica as “All hail electrification. But let’s talk about the hard part.”.