The International Energy Agency (IEA) released its latest global review highlighting the positive trends across different energy sectors, with renewables and natural gas emerging as significant winners. In 2024, global energy demand increased by 2.2%, outpacing averages from previous years. This growth was predominantly driven by emerging economies, particularly in Asia, which contributed over 80% to the demand increase. The electricity sector led this charge, growing by 4.3%, nearly double the annual average of the past decade.
Renewable energy capacity experienced a remarkable surge, adding approximately 700 gigawatts (GW) in 2024—marking the 22nd consecutive year of record growth. Alongside nuclear energy, renewables accounted for 80% of the increase in global electricity, showcasing their pivotal role. The IEA highlighted two main trends: one is that renewable energy is spearheading new electricity capacity, and the other is the significant influence of emerging economies on the energy landscape. China again played a critical role in this expansion, contributing two-thirds of the total renewable capacity additions, including 340 GW of solar and 80 GW of wind.
India also made strides, adding about 30 GW of solar energy, though this was notably less than China’s figures. Both nations, however, remain central to global coal demand, with coal consumption rising modestly by 1% in 2024. Natural gas also reached new heights in 2024, with demand increasing by 2.7% to an all-time high. Asia, especially China, drove this growth, aided by increased reliance on liquefied natural gas (LNG).
However, caution is warranted, as demand stagnated towards the end of the year amidst rising LNG prices. Meanwhile, crude oil demand rose only slightly, primarily due to the petrochemical sector, reflecting ongoing structural shifts towards electric vehicles and clean transportation. The IEA’s findings underscore the rapid expansion of renewables, substantially outpacing fossil fuel growth.