The Global Energy Review 2025 by the International Energy Agency (IEA) highlights significant shifts in energy demand, supply, and emissions. Here’s a breakdown of the key findings and what they mean for the future of energy.
1. Surging Global Energy Demand
Global energy demand grew by 2.2% in 2024, outpacing the average growth rate of the past decade. The power sector led this surge, with electricity demand rising by 4.3%—faster than global GDP growth (3.2%).
– Renewables dominated supply growth (38%), followed by natural gas (28%), coal (15%), oil (11%), and nuclear (8%).
– Emerging economies drove 80% of demand growth, with China and India accounting for the largest absolute increases.
– Advanced economies also rebounded, with energy demand rising by nearly 1% after years of decline.
2. Fossil Fuels: Diverging Trends
Oil Demand Slows
– Global oil demand growth fell to 0.8% in 2024, down from 1.9% in 2023.
– Oil’s share of total energy demand dropped below 30% for the first time (down from a peak of 46% in the 1970s).
– Road transport demand declined slightly, while aviation and petrochemicals saw growth.
Natural Gas Leads Fossil Fuel Growth
– Gas demand rose by 2.7%, the strongest among fossil fuels, driven by China (+7%) and the U.S. (+2%).
Coal Demand Rises, Led by Asia
– Coal use grew by 1%, primarily due to extreme heatwaves in China and India.
– China alone accounted for 58% of global coal consumption.
3. Electricity: Record Growth and Renewables Dominate
Global electricity consumption surged by 1,100 TWh—the largest increase outside post-recession rebounds.
Key Drivers:
– Cooling demand from extreme temperatures.
– Industrial expansion and data centers (global capacity grew by 20%).
– Electric vehicles (EVs): Sales rose by 25%, reaching 17 million units (20% of all car sales).
Renewables and Nuclear Take Center Stage
– 80% of new electricity generation came from renewables and nuclear.
– Renewables alone supplied 32% of global electricity, with solar PV leading installations (700 GW added in 2024).
– Nuclear power saw a 33% increase in new capacity, with China and Russia leading construction.
4. Emissions: A Mixed Picture
– CO₂ emissions grew by 0.8% in 2024, slower than economic growth (3%).
– Extreme weather contributed significantly—without record temperatures, half the emissions increase could have been avoided.
– Clean energy progress is making an impact: Solar, wind, nuclear, EVs, and heat pumps now prevent 2.6 billion tonnes of CO₂ annually (7% of global emissions).
– Advanced economies reduced emissions by 1.1%, returning to levels last seen 50 years ago.
5. Challenges Ahead
– Energy intensity improvements slowed to just 1% in 2024, down from 2% pre-pandemic.
– Hydropower shortages forced some regions to rely on less-efficient fuels.
– China’s per-capita emissions are now 16% higher than advanced economies, highlighting disparities in decarbonization efforts.
Conclusion: A Transition in Motion
The 2025 energy landscape reflects a world in transition:
✅ Renewables are expanding rapidly, but fossil fuels still dominate.
✅ Electricity demand is soaring, driven by digitalization, EVs, and climate extremes.
✅ Emissions growth is slowing, but weather and economic factors remain hurdles.
The report underscores the need for accelerated clean energy deployment and resilience against climate-driven demand shocks. The next decade will be critical in determining whether the world can meet its climate goals while sustaining economic growth.
Reference:
- Global Energy Review 2025, Source: IEA. International Energy Agency, Website: www.iea.org
