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FEATURE ARTICLE: Gas-fired power generation as a growing cornerstone of modern power systems

18 June 2026 |

Global electricity demand continues to rise steadily, driven by population growth, economic expansion, urbanization, electrification, and digitalization. Against this backdrop, natural gas remains a pivotal component of power systems worldwide, supporting both growing demand and system reliability. With annual output reaching 6,900 TWh, gas-fired electricity generation maintains its position as the world’s second-largest source of electricity, accounting for a 22% share of total output. This aggregate figure, however, conceals significant regional divergence, with growth concentrated in selected markets while other regions remain flat or experience declines. Although 116 countries generate electricity from natural gas, output remains highly concentrated, with the top 10 producers accounting for 63% of the global total. Looking ahead, while traditional drivers such as economic and industrial growth will continue to support rising electricity demand, emerging structural trends are expected to further reinforce the role of gas-fired generation, including its increasing importance in balancing variable renewable energy and meeting rising electricity demand from data centers and space cooling.

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