In 2024, global energy demand increased by 2.2%, surpassing the previous decade’s average annual growth of 1.3%, as the International Energy Agency (IEA) reported. This rise was primarily driven by a 4.3% surge in global electricity consumption, nearly double the average annual increase over the past ten years. Factors contributing to this escalation included record-high temperatures boosting cooling needs, increased industrial activity, the electrification of transport, and the expansion of data centres and artificial intelligence applications.
Emerging and developing economies accounted for over 80% of the increased energy demand despite China’s slower growth, where energy consumption rose by less than 3%, half the rate observed in 2023. After years of decline, advanced economies experienced a rebound with nearly a 1% increase in energy demand.
Approximately 700 gigawatts of new renewable power capacity were installed worldwide in 2024, marking the 22nd consecutive year of record renewable additions to meet the rising electricity demand. Nuclear power capacity also saw significant growth, with additions reaching their fifth-highest level in the past three decades. Collectively, renewables and nuclear energy supplied 80% of the increase in global electricity generation, accounting for 40% of total generation for the first time. Natural gas-fired generation also expanded to accommodate the growing electricity needs.
Despite the increased adoption of low-emission energy sources, energy-related carbon dioxide (COâ‚‚) emissions rose by 0.8% to 37.8 billion tonnes in 2024. The IEA attributes this rise partly to record-high temperatures driving up energy consumption. However, deploying clean energy technologies since 2019 has prevented an additional 2.6 billion tonnes of COâ‚‚ emissions annually, equivalent to 7% of global emissions.
Oil demand grew by 0.8% in 2024, with its share of total energy demand falling below 30% for the first time in 50 years. Sales of electric vehicles increased by over 25%, accounting for one in five cars sold globally, significantly reducing oil consumption in road transport. Coal demand rose by 1%, with intense heatwaves in China and India contributing to over 90% of the global increase.
The IEA’s findings underscore the complex dynamics of global energy consumption, highlighting the significant roles of renewable energy adoption and technological advancements in shaping the future energy landscape.
