The International Energy Agency (IEA) has released its Global Energy Review 2025, shedding light on significant trends in global energy demand and supply. The report reveals that global energy demand grew by 2.2% in 2024, a rate nearly twice the recent average.
This surge in demand was primarily driven by the power sector, with electricity consumption increasing by 4.3%. Several factors contributed to this growth, including record temperatures, electrification, and digitalization.
Renewable energy sources played a crucial role in meeting the rising energy demand. In 2024, renewables accounted for the largest share of the growth in global energy supply, contributing 38% of the additional energy needs. This was followed by natural gas at 28%, coal at 15%, oil at 11%, and nuclear power at 8%. The significant contribution of renewables highlights the ongoing transition towards cleaner energy sources, driven by both policy initiatives and technological advancements.
Emerging and developing economies were responsible for over 80% of the global energy demand growth. China and India, in particular, saw substantial increases in energy consumption. These countries are experiencing rapid industrialization and urbanization, which are driving higher energy needs. The report also notes that advanced economies, which had seen declines in energy demand in previous years, experienced a notable return to growth in 2024. This resurgence was partly due to increased industrial activity and extreme weather conditions that led to higher electricity consumption.
The IEA report emphasizes the role of the power sector in the overall growth of energy demand. The sharp increase in electricity consumption was a significant factor, driven by record global temperatures and rising industrial demand. The supply of renewables and natural gas covered most of the additional energy needs. The report highlights that 80% of the increase in global electricity generation in 2024 was provided by renewable sources and nuclear power. This underscores the importance of these energy sources in meeting the growing demand while also addressing environmental concerns.
The report also provides insights into the regional variations in energy demand and supply. In China, energy demand grew significantly due to the country’s ongoing industrialization and urbanization efforts. The Chinese government has been investing heavily in renewable energy infrastructure, which has helped to meet the rising demand. Similarly, India saw substantial growth in energy consumption, driven by its expanding economy and population. The Indian government has also been promoting renewable energy through various initiatives, contributing to the overall increase in energy supply.
In advanced economies, the return to growth in energy demand was notable. After several years of declines, these economies experienced higher energy consumption in 2024. This was partly due to increased industrial activity and extreme weather conditions that led to higher electricity usage. The report highlights the importance of renewable energy and nuclear power in meeting the additional energy needs in these regions. The transition towards cleaner energy sources is evident, with renewables playing a significant role in the overall energy mix.
The IEA report also discusses the implications of these energy trends for global energy markets. The growing demand for energy, particularly electricity, is expected to drive investments in renewable energy infrastructure. Governments and private sector entities are likely to increase their focus on developing and deploying clean energy technologies.
In conclusion, the IEA’s Global Energy Review 2025 highlights key trends in global energy demand and supply. The report reveals a significant surge in energy demand in 2024, driven by the power sector and electricity consumption. Advanced economies also saw a return to growth in energy demand, highlighting the importance of renewables and nuclear power in the overall energy mix.
