Global energy demand saw a significant spike in 2024, driven primarily by a surge in electricity usage, as reported by the International Energy Agency (IEA). The increase in electricity consumption was substantial, rising by nearly 1,100 terawatt-hours, marking a 4.3% increase compared to the annual average growth of the past decade.
Several factors contributed to this dramatic rise in energy demand. The electrification of transportation, rising global temperatures necessitating increased cooling needs, growing industrial activity, and the escalating energy demand from data centers and AI applications all played a role in driving up electricity consumption.
Renewable energy emerged as the hero in meeting this escalating energy demand, according to the IEA’s latest Global Energy Review. In 2024, the world installed approximately 700 gigawatts (GW) of new renewable power capacity, setting a new record for the 22nd consecutive year. Renewables, alongside nuclear power, which experienced its fifth-highest growth in three decades, accounted for a significant 80% of the global electricity supply increase. Together, renewables and nuclear power reached a significant milestone, covering 40% of total global electricity generation for the first time.
IEA’s executive director, Fatih Birol, emphasized the positive shift in energy consumption trends, stating that the rapid growth of solar, wind, nuclear power, and electric vehicles (EVs) is beginning to decouple economic growth from emissions.
While natural gas experienced the largest increase among fossil fuels in 2024, driven primarily by rising electricity demand, EV sales surged by over 25%, now constituting one in every five cars sold globally. This surge in EV sales had a notable impact on oil demand, which grew modestly by 0.8%. For the first time ever, oil fell below 30% of total energy demand, a significant milestone 50 years after its peak at 46%.
Despite a 1% increase, the growth of coal slowed significantly compared to previous years, with intense heatwaves in China and India accounting for over 90% of this rise.
On the emissions front, CO2 emissions in advanced economies saw a 1.1% decline in 2024, reaching 10.9 billion tonnes – a level not seen in 50 years, despite the tripling of these economies in size. Global CO2 emissions rose by 0.8% to 37.8 billion tonnes, with record temperatures playing a significant role. However, the rapid adoption of clean energy technologies since 2019 is now preventing 2.6 billion tonnes of CO2 annually, equivalent to 7% of global emissions.
Dr. Birol summarized the findings, highlighting the alignment of key trends identified by the IEA with the data for 2024. The shift towards clean energy technologies, the growth of EVs, and the decoupling of emissions from economic growth are all evident in the data.
Overall, the energy landscape in 2024 reflected a significant shift towards renewables and cleaner energy sources, signaling a positive trajectory for global energy consumption and emissions reduction.
