Global energy demand saw an above-average annual rise of 2.2 per cent in 2024, driven by rising electricity consumption and growth in emerging economies, according to a new report by the International Energy Agency (IEA) released yesterday.
The IEA analysis showed last year’s increase outpaced the annual average of 1.3pc recorded between 2013 and 2023.
The power sector led the charge, with global electricity consumption climbing by nearly 1,100 terawatt-hours, or 4.3pc.
The rise in electricity consumption stemmed from various factors, including higher cooling demand due to extreme temperatures, increased industrial use, the electrification of transport, and the expansion of data centers and artificial intelligence.
“What is certain is that 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,” IEA Executive Director Fatih Birol said in the report.
Renewables accounted for most of the growth in global energy supply at 38pc, followed by natural gas at 28pc, coal at 15pc, oil at 11pc, and nuclear power at 8pc.
“The 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 electric vehicles is increasingly loosening the links between economic growth and emissions,” added Birol.
New renewable energy installations hit record levels for the 22nd consecutive year, with around 700 gigawatts added to total capacity in 2024 - roughly 80pc of that from solar photovoltaic.
Over 7 GW of nuclear power capacity was brought online in 2024, marking a 33pc rise compared to 2023.
“The new nuclear capacity added was the fifth-highest level in the past three decades. Electricity generation from nuclear in 2024 rose by 100 TWh, equalling the largest increase this century outside of the post-Covid rebound,” said the IEA.
The IEA’s analysis comes as countries ramp up efforts to diversify their energy mix with renewables and nuclear power.
In a separate January report, the IEA said annual investments in nuclear energy development would need to double to $120 billion by 2030 to meet growing infrastructure demands. It emphasized that both public and private investments would be essential to support the sector’s financial needs.
The report highlighted that emerging and developing economies accounted for over 80pc of the increase in global energy demand in 2024.
Despite slower growth in China – where energy consumption rose by less than 3pc, half its 2023 rate – the country still recorded the largest absolute demand growth of any nation.
India ranked second in absolute demand growth, surpassing the combined increase of all advanced economies.
Southeast Asia saw a 4.2pc rise in energy demand, followed by the Middle East at 2.2pc and Europe at 0.5pc.
Advanced economies, after years of decline, also saw a return to growth, with energy demand rising by nearly 1pc in aggregate.
The IEA noted a marked slowdown in global oil demand growth, which rose by just 0.8pc in 2024 – down from 1.9pc in 2023.
For the first time ever, oil’s share in total energy demand fell below 30pc, 50 years after peaking at 46pc.
“Oil demand from global road transport fell slightly, driven by declines in China (-1.8pc) and advanced economies (-0.3pc). Oil demand from aviation and petrochemicals grew,” said the agency.
In contrast, Opec shared a different outlook in February, forecasting world oil demand to rise by 1.45 million barrels per day in 2025 and by 1.43m bpd in 2026, driven by increased air and road travel.
Natural gas recorded the strongest increase in demand among fossil fuels in 2024, driven by rising power consumption across Asia.
The IEA reported that global gas demand rose by 115bn cubic metres, or 2.7pc – surpassing the decade-long annual average of 75 bcm.
China led the growth with a 7pc rise in gas demand, alongside strong increases in other emerging and developing Asian economies.
Gas demand expanded by around 2pc in the US, while consumption in the EU grew modestly, particularly for industrial use.
According to the IEA, the rapid adoption of clean energy technologies helped curb the annual rise in energy-related carbon dioxide emissions in 2024.
&uuid=(email))