Growth in global energy demand surged in 2024 to almost twice its recent average

Orisemeke Benjamin

Global energy demand grew at a faster-than-average pace in 2024 as the consumption of electricity rose around the world – with increased supply of renewables and natural gas covering the majority of additional energy needs, according to a new International Energy Agency (IEA) report.

The latest edition of the IEA’s Global Energy Review, is the first global assessment of 2024 trends across the energy sector. Based on the most recent data, it covers energy demand, supply, the uptake of new energy technologies and energy-related carbon dioxide (CO2) emissions.

The report finds that global energy demand rose by 2.2% last year – lower than GDP growth of 3.2% but considerably faster than the average annual demand increase of 1.3% between 2013 and 2023. Emerging and developing economies accounted for over 80% of the increase in global energy demand in 2024.

This was despite slower growth in China, where energy consumption rose by less than 3%, half its 2023 rate and well below the country’s recent annual average. After several years of declines, advanced economies saw a return to growth, 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 surging by nearly 1,100 terawatt-hours, or 4.3%. This was nearly double the annual average over the past decade. The sharp increase in the world’s electricity use last year was driven by record global temperatures, which boosted demand for cooling in many countries, as well as by rising consumption from industry, the electrification of transport, and the growth of data centres and artificial intelligence.

The expanding supply of low-emissions sources covered most of the increase in global electricity demand in 2024. The amount of new renewable power capacity installed worldwide rose to around 700 gigawatts, setting a new annual record for the 22nd consecutive year. Nuclear power capacity additions reached their fifth highest level in the past three decades. As a result, 80% of the increase in global electricity generation in 2024 was provided by renewable sources and nuclear, which together contributed 40% of total generation for the first time. The supply of natural gas-fired generation also increased steadily to cover rising electricity demand.

“There are many uncertainties in the world today and different narratives about energy – but this new data-driven IEA report puts some clear facts on the table about what is happening globally.

“What is certain is that electricity use is growing rapidly, pulling overall energy demands along with it to such an extent that it is enough to reverse years of declining energy consumption in advanced economies. 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,” said IEA Executive Director Fatih Birol.