Global Power Demand to Hit Record High This Year...Will It Open Export Paths for SME Power Firms?

As global electricity demand surges on the back of expanding artificial intelligence (AI) infrastructure, a platform has been created to support the overseas expansion of Korea's small and medium-sized power equipment companies.

On the 5th, the Korea Trade-Investment Promotion Agency (KOTRA) and the Korea Electrical Industry Promotion Association (KOEMA) announced that they will hold a "Power Industry Export Consultation Meeting" for two days from the 4th, in conjunction with the "ELEX Korea 2026" exhibition being held at COEX in Seoul.

The Korea Trade-Investment Promotion Agency (KOTRA) and the Korea Electrical Industry Promotion Association will hold the "Power Industry Export Consultation Meeting" linked to the "ELEX Korea 2026" exhibition at COEX in Seoul for two days starting February 4. Photo by KOTRA.

ELEX Korea is Korea's leading exhibition in the electrical industry, hosted by the Ministry of Trade, Industry and Energy and organized by KOEMA. KOTRA has invited 35 overseas buyers to visit Korea and is organizing a B2B export consultation program with more than 120 domestic companies. The buyers visiting Korea this time will conduct one-on-one consultations based on prior information exchanged with Korean companies, while also touring the ELEX Korea exhibition, carrying out industrial site visits, and conducting on-site inspections of individual companies' production facilities.

According to the International Energy Agency (IEA), global electricity demand is expected to increase by 3.3% year-on-year in 2025 and by 3.7% in 2026, hitting an all-time high. The acceleration in power consumption is being driven by a sharp rise in electricity use for AI data centers in the United States, Europe, and Asia; the replacement of aging power facilities; growing demand in many countries for a shift away from coal toward nuclear and renewable energy; and advances in electrification and automation across industries.

Korea's power generation and transmission and distribution equipment industries, including distribution transformers, extra-high-voltage cables, and smart power devices, have also been experiencing an unprecedented boom in recent years. Korean power industry equipment has been recognized for its technological competitiveness even in advanced markets such as the United States and Europe, and export volumes of power equipment rose 19.3% over the past four years (2022-2025), from 13.81 billion dollars to 16.48 billion dollars.

Kansai Electric Power, Japan's second-largest electric power company, came to Korea to participate in this consultation meeting, met with Korean companies at the venue, and visited production sites in person, showing strong interest in Korean power equipment. Japan is currently promoting power grid modernization and the expansion of renewable energy under its 7th Strategic Energy Plan, which is expected to create more opportunities for Korean companies to enter the Japanese market.

Korea Trade-Investment Promotion Agency and the Korea Electrical Industry Promotion Association will hold a "Power Industry Export Consultation" linked to the "ELEX Korea 2026" exhibition at COEX in Seoul for two days starting February 4. The photo shows a buyer and a domestic company participating in a one-on-one export consultation at the meeting. Photo by Korea Trade-Investment Promotion Agency

Many companies from the Global South, including the Middle East, Southeast Asia, and Africa, also took part in the consultation meeting. From Egypt, Arab Contractors Company and Orascom Construction, which are planning to build power plants, held consultations with Korean companies to source power generation equipment. Egypt, which is pursuing policies to foster its manufacturing sector, has been attracting attention as an alternative overseas investment destination after receiving a relatively low reciprocal tariff rate of 10% from the United States last year. Another factor driving interest is that, at the Asia-Pacific Economic Cooperation (APEC) Summit held in Gyeongju last November, the leaders of the two countries agreed to pursue a Comprehensive Economic Partnership Agreement (CEPA).

From Vietnam, Korea's third-largest export and trading partner, seven companies visited Korea to source industrial power equipment such as transformers, generators, switchgear, and cables. A representative from a Vietnamese company, identified as Company N, who met with Korean transmission and distribution equipment firms, said, "Vietnam is expanding its power infrastructure, and Korea has secured competitiveness in stable power supply, so we hope to cooperate in areas where technological reliability is essential."

KOTRA President Kang Kyungsung said, "Korea's power industry has long been recognized for its high quality in the power generation and transmission and distribution sectors, but related exports remain heavily concentrated among large corporations," adding, "We will actively support small and medium-sized power equipment companies in expanding their overseas presence by leveraging the recent sharp increase in global electricity demand driven by AI infrastructure expansion and the energy transition."

This content was produced with the assistance of AI translation services.