In 2024, global energy demand surged at nearly double its recent average pace, driven by a significant rise in electricity consumption worldwide. This trend was highlighted in the latest Global Energy Review from the International Energy Agency (IEA).
The report presents a comprehensive assessment of 2024’s energy sector trends, focusing on energy demand, supply, the adoption of new technologies, and carbon dioxide emissions. Global energy demand increased by 2.2% in 2024, slightly lower than the 3.2% GDP growth but significantly faster than the average annual demand growth of 1.3% during the previous decade.
Emerging and developing economies contributed to over 80% of this demand growth, even as China registered a slower increase of less than 3%. In contrast, advanced economies experienced a recovery, seeing their energy demand rise by nearly 1% after several years of decline.
A major driver of this demand growth was the power sector, where global electricity consumption rose sharply by nearly 1,100 terawatt-hours, or 4.3%. This rise was fueled by extreme global temperatures, increasing industrial consumption, the electrification of transport, and the expansions of data centers and artificial intelligence.
Remarkably, renewable energies and nuclear power accounted for 80% of the increase in electricity generation, marking a notable shift towards low-emission sources. Natural gas saw the most significant demand increase among fossil fuels, rising by 2.7%.
Oil demand grew more slowly at 0.8%, with electric vehicles gaining market traction, representing one in five cars sold globally. Interestingly, global coal demand increased by just 1%, primarily driven by intense heatwaves in key markets like China and India.
The report emphasized the decoupling of energy-related CO2 emissions from economic growth. Although emissions rose by 0.8% to 37.8 billion tonnes, technological advancements in clean energy are preventing an even larger increase.
In advanced economies, CO2 emissions decreased, while emerging economies outside China accounted for most of the growth. This evolving landscape highlights the complexities and challenges of global energy consumption and emissions moving forward.