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Global demand for energy creating higher demand for all sources

Global appetite for energy rose at a faster-than-average pace in 2024, creating higher demand for all energy sources.

This stellar growth was led by the power sector, with the demand for electricity rising almost twice as fast as wider energy demand because of:

• Higher demand for cooling,
• Rising consumption by industry,
• The electrificaiton of transport, and
• The growth of data centres and artificial intelligence demands.

Almost all of the rise in electricity demand was met by low-emissions energy sources. This was led by a record-breaking expansion of solar PV capacity and further growth in nuclear power and other renewables.

Gas demand also picked up substantially while oil and coal consumption increased more slowly than in 2023.

“Growth in energy-related CO₂ emissions continues to decouple from global economic growth. Emissions growth slowed to 0.8% in 2024, while the global economy expanded by more than 3%.”

Where do carbon emissions fit into global energy demand?

The International Energy Agency (IEA) released these key findings as part of their latest report, the Global Energy Review 2025, a look at 2024 trends across the entire energy sector.

The report covers data for all fuels and technologies, all regions and major countries and energy-related CO₂ emissions.

CO₂ emissions from the energy sector continued to rise in 2024, but at a slower rate than it did in 2023.

The IEA says a key driver of this increase was record-high temperatures. If 2023 global weather patterns had repeated in 2024, about half of the increase in global emissions would have been avoided.

The continued rapid adoption of clean energy technologies is limiting emissions growth. This new analysis shows 2.6 billion tonnes of additional CO₂ emissions a year, were avoided.

Key findings for global energy demand from IEA energy review

• Global energy demand grew by 2.2% in 2024. This was faster than the average rate over the past decade. Demand for all fuels and technologies expanded in 2024.
• Emerging and developing economies accounted for over 80% of global energy demand growth.
• Advanced economies also saw a notable return to growth in energy demand after several years of decline, with demand rising by almost 1%.
• Global oil demand growth slowed markedly in 2024, in line with the IEA’s forecast. Oil’s share of total energy demand fell below 30% for the first time ever, 50 years after peaking at 46%.
• Natural gas saw the strongest demand growth among fossil fuels.
• Global coal demand rose by 1%.
• Global electricity consumption rose by nearly 1,100 terawatt-hours (TWh) in 2024, more than twice the annual average increase over the past decade.
• Rising global electricity use was driven by factors such as increasing cooling demand because of extreme temperatures; growing consumption by industry; the electrification of transport; and the expansion of the data centre sector.
• In 2024, 80% of the growth in global electricity generation came from renewable sources and nuclear energy.
• In 2024, more than 7GW of nuclear power capacity was brought online. This was 33% more than in 2023.
• Growth in energy-related CO₂ emissions continues to decouple from global economic growth. Emissions growth slowed to 0.8% in 2024, while the global economy expanded by more than 3%.
• Energy intensity improvements continued to slow in 2024.

Specific to Africa

Demand for oil in Africa declined in 2023 and 2024.

Several emerging markets and developing economies experienced acute disruptions to fuel use. This was often linked to wider economic difficulties or the withdrawal or reduction of government subsidy schemes, as was the case in Egypt and Nigeria.

The IEA said natural gas consumption in global industry continued to recover in 2024, benefitting from the lower price environment, but it remained nearly 15% below its 2019 level.

“Natural gas demand in the Middle East grew by an estimated 2%, supported by stronger gas use by the power and industry sectors. In Africa, depressed upstream activity limited natural gas demand growth to below 1%.”

On the other hand 2024 saw global annual renewable energy capacity additions surge by around 25% to 700GW.

This marks the 22^nd consecutive year that renewables have set new records for expansion.

“Solar PV accounted for over three-quarters of renewable capacity additions, followed by wind (17%) and hydropower (4%), with bioenergy, geothermal, concentrating solar power and marine making up the remainder.

“With this growth, installed solar PV capacity worldwide reached an estimated 2.2TW.

“Annual wind additions remained stable at around 120GW.

“Solar PV additions in 2024 rose by almost 30% year-over-year, totalling aˀbout 550GW.

“Together, solar PV and wind accounted for 95% of overall renewable capacity growth in 2024. Hydropower installations more than doubled to over 25GW thanks to large projects commissioned in China, Africa and Southeast Asia.”

Find out more in the International Energy Agency’s Global Energy Review 2025 report

About the author

ESI Africa
ESI Writer

Kim Jansen