The IEA report reveals that global energy demand grew by 2.2% in 2024, outpacing the 1.3% annual average increase recorded between 2013 and 2023. It also suggests that growth in energy-related CO₂ emissions continued to decouple from global economic growth, with emissions growth slowing to 0.8% in 2024, to reach 37.8bn tonnes, while the global economy expanded by more than 3%.  

Emerging and developing economies accounted for over 80% of the rise in energy demand. This was despite a slowdown in the growth of energy consumption in China to under 3%, half its 2023 rate.  

Advanced economies saw a return to growth in energy demand after several years of declines, with their energy demand increasing by almost 1% in aggregate.

The acceleration in global energy demand growth in 2024 was led by the power sector, with global electricity consumption increasing by nearly 1,100 TWh, or 4.3%. This was nearly double the annual average over the past decade. Record global temperatures boosted demand for cooling in many countries, while rising consumption from industry, the electrification of transport, and the growth of data centres and artificial intelligence also contributed to the sharp increase in electricity use.

The rapid growth in electricity consumption was met largely by the expansion of low-emission energy sources. The installation of new renewable power capacity reached a record-breaking 700 GW in 2024, marking the 22nd consecutive year of record growth. Nuclear power also experienced strong expansion, with new capacity additions ranking among the highest in the past three decades.

As a result, renewables and nuclear energy supplied 80% of the increase in global electricity generation in 2024. For the first time, their combined share of total generation exceeded 40%.  

The supply of natural gas-fired generation also increased steadily to cover rising electricity demand, recording the strongest increase in demand among fossil fuels in 2024. Gas demand rose by 115bn m³ (2.7%), compared with an average of around 75bn m³/y over the past decade.  

Meanwhile, oil demand grew more slowly, rising by 0.8% in 2024. Oil’s share of total energy demand fell below 30% for the first time ever, 50 years after it peaked at 46%. Sales of electric cars rose by over 25% last year, with electric models accounting for one in five cars sold globally. This contributed considerably to the decline in oil demand for road transport, which offset a significant proportion of the rise in oil consumption for aviation and petrochemicals, notes the IEA.

Global coal demand rose by 1% in 2024, half the rate of increase seen the previous year. Heat waves in China and India – which pushed up cooling needs – contributed more than 90% of the total annual increase in coal consumption globally.

‘Electricity use is growing rapidly, pulling overall energy demand along with it to such an extent that it is enough to reverse years of declining energy consumption in advanced economies,’ concludes IEA Executive Director Fatih Birol. ‘The result is that demand for all major fuels and energy technologies increased in 2024, with renewables covering the largest share of the growth, followed by natural gas. And the strong expansion of solar, wind, nuclear power and EVs is increasingly loosening the links between economic growth and emissions.’

Renewable capacity expansion set records, but challenges remain

Meanwhile, IRENA’s latest analysis also highlights record-breaking expansion in renewable energy capacity in 2024. Some 585 GW of capacity was added, a growth of 15.1%, to reach 4,448 GW, it reports.

Solar and wind energy continued to expand the most, jointly accounting for 96.6% of all net renewable additions in 2024. Over three-quarters of the capacity expansion was in solar energy, which increased by 32.2%, reaching 1,865 GW, followed by wind energy, which grew by 11.1%, reaching 1,133 GW.

Decommissioning of non-renewable power in some regions also contributed to the upward trend of renewables capacity.  

However, progress still falls short of the 11.2 TW needed to align with the global goal to triple installed renewable energy capacity by 2030, warns IRENA. To reach this goal, renewable capacity must now expand by 16.6% annually until 2030.

The analysis also highlights significant geographic disparities. As in previous years, most of the increase occurred in Asia, with the greatest share being contributed by China – almost 64% of the global added capacity – while Central America and the Caribbean contributed the least, at only 3.2%. The G7 and G20 countries respectively accounted for 14.3% and 90.3% of new capacity in 2024.

Technology highlights from the report include significant growth in solar photovoltaics, which increased by 451.9 GW last year. China alone added 278 GW to the total expansion, followed by India with 24.5 GW. Wind energy increased by 113 GW, dominated by China and the US. Meanwhile, hydropower capacity increased by 15 GW, ‘a notable rebound from 2023’ according to IRENA, also driven by China. Bioenergy expansion rebounded, with an increase of 4.6 GW of capacity compared to 3 GW in 2023. Growth was driven by China and France, with 1.3 GW of additions each. Geothermal energy increased by 0.4 GW overall, led by New Zealand.

Despite the rise of renewables in the energy mix, IRENA Director-General Francesco La Camera urges governments to integrate stronger renewable energy commitments into their next round of Nationally Determined Contributions (NDCs) under the Paris Agreement. He states that a quick and equitable expansion of renewable power capacity is key to enhancing energy security and unlocking economic opportunities. The international community must work together to ensure all countries benefit from the transition to clean energy, he adds.