Global energy demand increased sharply in 2024, rising by 2.2% and nearly doubling its average annual growth rate of the previous decade, according to the latest Global Energy Review released by the International Energy Agency (IEA). The report attributes the surge primarily to a sharp rise in global electricity consumption, with renewables and natural gas accounting for most of the new energy supply. Despite being below global GDP growth of 3.2%, the 2.2% rise in energy demand marks a significant jump from the 1.3% average annual increase observed between 2013 and 2023.
Emerging and developing economies contributed over 80% of this growth. In contrast, China experienced a notable slowdown, with energy demand rising less than 3% half its growth rate in 2023. Advanced economies, after several years of decline, recorded a modest 1% increase in demand. Electricity consumption was the primary driver of this energy expansion, growing by nearly 1,100 terawatt-hours, or 4.3%. This rate is nearly twice the average growth of the previous decade. The IEA attributed this to record-breaking global temperatures, increased industrial use, transport electrification, and the expansion of data centers and artificial intelligence (AI).
Renewables and nuclear energy met most of the rising electricity demand in 2024. A record 700 gigawatts of new renewable capacity was added globally, the 22nd consecutive annual record. Nuclear energy saw its fifth-largest capacity expansion in 30 years. Together, these sources contributed 80% of the new electricity supply, raising their combined share of global electricity generation to 40% for the first time. Natural gas-fired generation also increased, helping to balance growing demand.
IEA Executive Director Fatih Birol emphasized the significance of the findings, noting that electricity demand is now strong enough to reverse long-term declines in energy consumption in advanced economies. “Electricity use is growing rapidly, pulling overall energy demand along with it,” he said, adding that renewables and gas were the primary contributors to this growth, while the expansion of clean technologies is weakening the traditional link between economic activity and emissions. Among fossil fuels, natural gas saw the largest increase in demand, rising by 115 billion cubic metres, or 2.7%. Oil demand grew more modestly, by 0.8%, pushing oil’s share of global energy demand below 30% for the first time in five decades.
Electric vehicle sales rose by over 25%, accounting for one in every five cars sold globally, significantly reducing road transport-related oil consumption. Coal demand increased by just 1%, down from the previous year’s rate. Most of this growth came from China and India, where heatwaves raised electricity needs. Despite the overall rise in energy use, carbon dioxide emissions increased by just 0.8% to 37.8 billion tonnes, supported by growing clean energy adoption. Advanced economies reduced their CO2 emissions by 1.1%, reaching levels last recorded in the 1970s, even as their economies tripled in size. – By MENA Newswire News Desk.