The latest report from the International Energy Agency (IEA) has revealed a significant rise in global energy demand in 2024, driven primarily by a sharp increase in electricity consumption.

This surge, of nearly 1,100 TWh or 4.3%, was almost double the average annual growth seen over the last decade. The increase was largely attributed to record-breaking temperatures worldwide, which intensified the need for cooling systems, alongside expanding industrial activity, the continued electrification of transport, and the growing energy requirements of data centres and artificial intelligence.

In response to this rising demand, renewable energy sources saw a substantial increase in capacity. Around 700 GW of new renewable power was installed globally, marking the 22nd consecutive year of record growth. The expansion of nuclear energy also played a crucial role, with its capacity additions ranking among the five highest levels in the last 30 years. Together, renewables and nuclear power supplied 80% of the increase in electricity generation in 2024, and for the first time, they accounted for 40% of total global power generation. This shift underscores the growing influence of low-carbon energy sources in meeting the world’s electricity needs.

“There are many uncertainties in the world today and different narratives about energy – but this new data-driven IEA report puts some clear facts on the table about what is happening globally,” said IEA executive director Fatih Birol. “What is certain is that electricity use is growing rapidly, pulling overall energy demand along with it to such an extent that it is enough to reverse years of declining energy consumption in advanced economies. The result is that demand for all major fuels and energy technologies increased in 2024, with renewables covering the largest share of the growth, followed by natural gas. The strong expansion of solar, wind, nuclear power and EVs is increasingly loosening the links between economic growth and emissions,” continued Birol.

He emphasised that electricity use is growing rapidly and, as a result, pulling overall energy demand up, reversing years of declining energy consumption in advanced economies.

Despite the continued expansion of renewables, fossil fuel consumption also increased, with natural gas seeing the largest rise among them. Global gas demand climbed by 115bn cubic metres (or 2.7%), surpassing the average annual increase of 75 bcm over the past decade. This increase was driven primarily by growing consumption in Asia, where natural gas remains a key component of the energy mix. In contrast, oil demand grew more modestly at 0.8%, marking a significant milestone as oil’s share of total energy demand fell below 30% for the first time in history, down from its peak of 46% five decades ago.

A major factor behind this decline was the rapid adoption of electric vehicles. Sales of electric cars surged by more than 25% last year, with electric models making up one in five vehicles sold worldwide. This shift significantly reduced oil demand in the road transport sector, offsetting increased oil consumption in aviation and petrochemical production.

Coal demand continued to rise but at a slower pace than in previous years, increasing by just 1% in 2024 – half the growth rate seen the year before. Intense heatwaves in China and India were responsible for over 90% of the global increase in coal consumption, as extreme temperatures drove up electricity demand for cooling.

This highlights how climate change-related weather events are directly impacting energy consumption patterns. The reliance on coal in these regions continues to pose challenges to global efforts to transition towards cleaner energy sources.

Emerging and developing economies were responsible for more than 80% of the rise in global energy demand. This occurred despite slower growth in China, where energy consumption increased by less than 3%, just half the rate seen in 2023 and well below the country’s average over recent years.

Advanced economies, after several years of declining energy use, saw a reversal in trend, with overall demand rising by nearly 1%. The return to growth in these regions reflects broader economic activity, along with the increasing electrification of various sectors.

The expansion of clean energy technologies helped curb the rise in energy-related carbon dioxide emissions, which are becoming progressively less tied to economic growth. Global CO2 emissions increased by 0.8% in 2024, reaching 37.8bn tonnes. However, the widespread deployment of solar panels, wind turbines, nuclear power, electric vehicles, and heat pumps since 2019 is now preventing 2.6bn tonnes of CO2 emissions annually, equivalent to about 7% of total global emissions. These technologies have played a crucial role in mitigating the environmental impact of rising energy consumption.

In advanced economies, carbon dioxide emissions fell by 1.1% to 10.9bn tonnes, returning to levels last seen 50 years ago. This is particularly striking given that the combined GDP of these nations has tripled over the same period. While emissions growth in China slowed, the country’s per-capita emissions have now risen to 16% above those of advanced economies and nearly twice the global average.

Most of the emissions increase in 2024 came from emerging and developing economies outside China, underlining the continued challenge of balancing economic growth with emissions reduction efforts.

The IEA’s report suggests that the global energy transition remains on track but will require continued investment in clean energy technologies to maintain momentum. While progress has been made, challenges remain, particularly in managing the energy demands of rapidly growing economies and mitigating the impact of extreme weather events on power consumption. The role of renewables, nuclear power, and electrification will be essential in shaping a more sustainable global energy system, said the report.

The findings from the IEA highlight a clear shift in how energy is being generated and consumed worldwide. The rapid expansion of renewables and nuclear power, coupled with the increasing adoption of electric vehicles (EVs) and energy-efficient technologies, indicates that global energy demand can continue to grow while reducing its environmental impact.

However, the reliance on fossil fuels in certain regions and the continued increase in emissions in developing economies underscore the complexities of achieving a fully sustainable energy transition. Sustained efforts will be needed to ensure that economic growth does not come at the expense of environmental progress.