Global energy demand grew significantly in 2024

Global energy demand increased significantly in 2024, nearly doubling its recent average growth rate. This rise is largely due to a surge in electricity consumption, with renewables and natural gas meeting most of the extra energy needs. The International Energy Agency (IEA) released a report today outlining these trends. Energy demand grew by 2.2% last year, which is faster than the annual average of 1.3% from 2013 to 2023. Most of this growth came from emerging and developing economies, which accounted for over 80% of the increase. Even advanced economies, which had seen declines in previous years, reported a rise in energy demand of almost 1%. The power sector led the demand increase, with electricity consumption jumping by 4.3%. This growth was fueled by extreme temperatures that heightened cooling needs, as well as by industrial use, electric vehicles, and data centers. Renewable energy sources and nuclear power provided 80% of this increased electricity generation. The IEA report highlights that renewable energy capacity installations reached a record high of 700 gigawatts, marking the 22nd consecutive year of growth. Natural gas demand also rose by 2.7%, while oil demand grew by only 0.8%. The share of oil in total energy demand fell below 30% for the first time, with electric cars accounting for one in five cars sold globally. Coal demand increased by 1%, significantly influenced by heatwaves in China and India. Despite rising energy consumption, the growth in carbon dioxide emissions was limited due to the ongoing shift towards clean energy technologies. Global CO2 emissions rose by only 0.8% in 2024. In advanced economies, emissions declined by 1.1%, reflecting a significant shift despite their larger economies. However, emissions in emerging markets increased, with China’s per-capita emissions still exceeding those in advanced countries. The data indicates a strong correlation between rising electricity use and overall energy demand, suggesting significant changes in the energy landscape.