Dividends and Asia set to use half of the World’s electricity by 2025, IEA says in annual forecast

A number of years ago, one of the general magazines published a photo of the electrical lights of the world as seen by one of the satellites in space. As one would expect the US and Europe were lit up and there were vast areas where electricity was not to be seen. Where there was mass civilization there were lights, where few people lived there was few lights. Does that always be the norm?

In an article by Frank Jordans of the Associated Press, the International Energy Agency based in Paris, France is forecasting Asia to use half of the world’s electricity by 2025. Much of that usage will be in China which will go from a 25% to over 33%.

China will consume more electricity that the European Union, US, and India combined, said Keisuke Sadamori, the IEA’s director of energy markets and security.

Africa home to nearly 8 billion people will consume just 3% of the world’s electricity in 2025.

Part of the solution is renewable energy including solar and wind and nuclear power. Much of the world is dependent upon good weather for solar and wind. In such a world, the flexibility of the power systems while ensuring security of supply and resilience of networks will be crucial.

Linking to dividend paying stocks, one of the easy investments is to buy utility stocks because the power can be generated, and regulatory agencies tend to raise rates which keeps investors happy. If you buy these types of stocks, it is important to ask how is the company flexible and able to continue to generate electricity which translates to profits and dividends?

There are more questions than answers, till the next time – to raising questions.

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