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Importance of electricity: powering modern life

Importance of electricity: powering modern life

January 31, 2024
From lighting our homes to driving technological advancements, discover the importance of electricity in shaping our modern world.
The importance of electricity cannot be understated.

Importance of electricity: powering modern life

From lighting our homes to driving technological advancements, discover the importance of electricity in shaping our modern world.

Many of us fail to pause and contemplate the transformative impact of electricity on human existence. Modern societies utilize electricity in nearly all facets of life: transportation is powered by it, production relies heavily upon its use, and heating systems function because of it. The absence of electricity would lead to a quick decline in the quality of life, and human technological progress would probably come to an end. Fortunately, the supply of electricity is secure and steady. Discover the importance of electricity in shaping our modern world.

How is electricity generated?

Electricity utilized by households and businesses is often labeled as a secondary energy source, as it is derived from the conversion of primary energy sources.

Primary energy sources include:

Globally coal and natural gas are the most significant contributors to electricity generation. Hydropower contributes the most among renewable options, while wind and solar power are also on the rise.

Electricity production by source, world (source: Our World in Data)


The amount of electricity generated from fossil fuels, nuclear power, and renewables differs across nations, indicating a high level of general reliance on fossil fuels. Hence, it is environmentally beneficial to encourage the use of natural gas, which is the cleanest fossil fuel with a significantly smaller carbon footprint than coal.

Per capita electricity generation by source, 2022 (source: Our World in Data)


The importance of electricity to our modern world

Various aspects of modern life crucially rely on electricity. It enhances our quality of living, ensures safety and security, facilitates transportation, and contributes to medical progress. Explore the importance of electricity in shaping our modern world.


Many modern heating systems utilize electricity for efficient, environmentally friendly space heating. Infrared radiant heaters, convection heaters, and heat pumps are among the most popular electrical heating systems.

Given that space heating constitutes a significant portion of household energy consumption, adopting modern heating methods is crucial to reduce wasted energy. Electricity plays a significant role in achieving this goal.

Energy consumption in households in the EU, 2021 (source: Eurostat)


Industrial processes

The importance of electricity in our economy cannot be understated. Modern industrial processes, requiring a substantial energy input, must maintain an uninterrupted and consistent energy supply to sustain their current production level. According to a 2021 Eurostat report, the EU's industrial sector stands as one of its largest energy consumers. It accounted for an impressive 25.6% of final energy consumption.

“Electricity (33.2 %) and natural gas (32.7 %) accounted for two-thirds of final energy consumption in the EU's industry sector in 2021.”

Final energy consumption in industry, 1990-2021, EU (source: Eurostat)



Primarily powered by electricity, lighting once significantly contributed to energy demand. However, the adoption of more efficient options like LED technology has stabilized the energy use in this area. By the year 2030, countries must mainly offer LED lighting solutions as a mandate to mitigate carbon emissions.

Powering appliances

Powering devices such as computers, home appliances, and medical equipment, among others, require electricity. These modern tools not only entertain us but also safeguard our well-being and boost productivity. Without the presence of electricity modern life would indeed be unimaginable.

The chart below illustrates the utilization of electricity in an average U.S. household.

Energy use in homes by end use, USA, 2020 (source: EIA)



The importance of electricity in transportation has increased significantly due to the widespread embrace of electric vehicles. Representing a critical technology for reducing carbon emissions, electrically powered cars combat issues arising from road transport which contributes over 15% to global energy-related emissions.

The year 2022 marked a substantial milestone: sales of electric cars surpassed the impressive 10-million mark. Anticipated growth continues to propel this burgeoning industry.

Electric car sales, 2016-2023 (source: International Energy Agency)



Across various aspects of modern life, the importance of electricity is evident. It contributes to a more fulfilling, secure, and content existence. It enables businesses to enhance production and lower the cost of goods. 

Employing innovative, energy-efficient technologies and moderating our energy consumption are two ways we can contribute to a greener future. However, we must not overlook the importance of adopting more environmentally friendly methods for energy generation; one such method is utilizing natural gas. It stands recognized as the cleanest fossil fuel in our current resources.

Learn more about the energy insights!