The Global Energy Review 2025, released by the International Energy Agency (IEA), highlights the profound impact of extreme weather on global energy demand in 2024. The report reveals an unprecedented 20 per cent surge in energy consumption, largely driven by record-high temperatures. This increase significantly boosted demand for natural gas and electricity, with coal use also rising to meet global energy needs. The comprehensive report covers all energy sources, emerging technologies, and related carbon dioxide (CO₂) emissions, offering valuable insights into the sector’s evolution.
Surging Energy Demand in 2024
In 2024, global energy demand grew at an accelerated pace, with electricity consumption rising nearly twice as fast as total energy demand. Key factors behind this surge included:
- Increased cooling needs due to severe heat waves.
- Rising industrial consumption, particularly in manufacturing.
- Expanding data centres and advancements in artificial intelligence (AI).
- The ongoing electrification of transportation, including the widespread adoption of electric vehicles (EVs).
Renewable Energy’s Growing Contribution
Renewable energy sources played a pivotal role in addressing this rising demand. Solar photovoltaic (PV) capacity saw record-breaking expansion, while renewables and nuclear power together accounted for 80 per cent of the growth in global electricity generation. Notably, renewable energy alone supplied 32 per cent of total electricity generation, marking a significant milestone in the transition to cleaner energy.
Sector-Wise Energy Demand Trends
Buildings Sector: A Dramatic Rise in Electricity Use
The buildings sector witnessed an extraordinary increase in electricity demand, growing four times faster than in 2023. This growth was primarily driven by the surge in demand for air conditioning, as extreme temperatures pushed cooling systems to their limits.
Industrial Sector: Energy-Intensive Manufacturing
The industrial sector played a crucial role in rising energy demand, accounting for nearly 40 per cent of total electricity consumption growth in 2024. Increased activity in electro-intensive manufacturing—including sectors like semiconductors, metals, and chemicals—fueled this surge.
Transport Sector: Electric Vehicles Lead the Charge
Electricity consumption in the transport sector rose by over 8 per cent in 2024, reflecting the rapid shift towards electrified mobility. Sales of electric vehicles (EVs) surpassed 17 million units, marking a 25 per cent increase compared to 2023. This trend underscores the growing role of clean energy in transportation and the push for decarbonisation.
CO₂ Emissions: A Persistent Challenge
Despite impressive gains in clean energy adoption, CO₂ emissions from the energy sector continued to rise in 2024, although at a slower rate than in 2023. The record-breaking temperatures were a major driver of this increase. Key contributors to emissions growth included:
- Natural gas emissions, which surged by approximately 2.5 per cent, making it the largest contributor to global carbon emissions growth.
- Coal demand, which saw a modest increase, particularly due to consumption in China and India.
Looking Ahead: The Future of Global Energy
The findings of the Global Energy Review 2025 emphasize the urgency of accelerating clean energy transitions. While renewables and electrification continue to gain momentum, the persistent reliance on fossil fuels underscores the need for stronger policies, technological innovations, and enhanced energy efficiency measures to mitigate emissions and ensure a sustainable future.