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| IEA |
Electricity was the dominant force behind global energy demand growth in 2024, according to the International Energy Agency (IEA)’s latest Global Energy Review. Total energy demand rose 2.2%, significantly outpacing the 10-year average of 1.3% (2013–2023). Electricity consumption alone surged 4.3%, driven by a confluence of factors: extreme heat, rising industrial use, the expansion of electric vehicles (EVs), and increasing electricity demand from data centers.
This unprecedented growth has heightened pressure on the global energy sector to balance supply security, climate targets, and economic development.
Renewables and Nuclear Dominate New Supply; Fossil Fuel Trends Shift
The IEA reported that renewables and nuclear power supplied 80% of the new electricity demand, helping mitigate emissions growth. A record 700 GW of new renewable energy capacity was installed globally in 2024, bolstering the share of clean power, which now accounts for 40% of global electricity generation.
Meanwhile, natural gas demand rose 2.7%, with strong growth in China and India (over 7% and 10%, respectively). In contrast, oil demand growth slowed sharply to 0.8%, from 1.9% in 2023, falling below 30% of total energy use. The rapid adoption of EVs helped curb oil use in road transport, despite upticks in aviation and petrochemical sectors.
Coal saw a marginal increase of 1.1%, down from 2.2% in 2023, with growth almost entirely attributed to heatwave-driven electricity demand in China and India — which together accounted for over 90% of the annual coal consumption increase.
Emissions Growth Slows Despite Weather-Driven Demand Spikes
The IEA emphasized the role of extreme weather in shaping energy trends, noting that heatwaves had a disproportionate impact on electricity usage and fossil fuel demand. Still, global energy-related CO₂ emissions growth slowed to 0.8%, down from 1.2% in 2023, reflecting the growing influence of low-carbon power sources in the global energy mix.
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