04:01 PM EDT, 10/16/2024 (MT Newswires) -- The momentum in clean energy sources amid growing electricity demand is "strong enough" to bring a peak in demand for fossil fuels, including oil, by the end of the decade, the International Energy Agency said Wednesday.

Over the last 10 years, electricity use has increased at twice the rate of overall energy demand, led by China, the agency said in its annual World Energy Outlook report. Global electricity demand growth is poised to accelerate further in the coming years.

With clean energy entering the system at an "unprecedented" rate, low-emissions sources are seen generating more than 50% of the world's electricity before 2030, the IEA said. Demand for all three fossil fuels -- oil, coal and gas -- is likely to peak by the end of the decade.

"In the second half of this decade, the prospect of more ample -- or even surplus -- supplies of oil and natural gas, depending on how geopolitical tensions evolve, would move us into a very different energy world from the one we have experienced in recent years during the global energy crisis," IEA Executive Director Fatih Birol said in a statement. "It implies downward pressure on prices, providing some relief for consumers that have been hit hard by price spikes."

Emerging and developing nations are leading a strong rise in energy services demand, the agency said. The continued progress of transition to alternative sources means that the world economy can grow without using additional amounts of oil, natural gas or coal by the end of the decade, the IEA said.

On Tuesday, the IEA trimmed its global oil demand growth outlook for 2024 amid weakness in China, a day after the Organization of the Petroleum Exporting Countries cut its 2024 and 2025 projections.

China's solar power generation could surpass current US electricity demand by the early 2030s, Birol added. The escalating geopolitical conflict in the Middle East and the Russia-Ukraine war underscore energy security risks, according to the report.

There is a need for "much greater" investment in new energy systems for clean energy, particularly in electricity grids and energy storage, the IEA said. "Today, for every dollar spent on renewable power, 60 cents are spent on grids and storage, highlighting how essential supporting infrastructure is not keeping pace with clean energy transitions."