Global energy demand grew by 2.2% last year, exceeding the decade's average, driven by increased electricity consumption. The additional energy needs were largely met through renewable energy and natural gas supply, according to the International Energy Agency's (IEA) first "Global Energy Assessment" report, which evaluates energy trends.
The report reveals that global energy demand is projected to rise by 2.2% in 2024. While this is below last year's 3.2% global economic growth, it significantly outpaces the average annual increase of 1.3% from 2013-2023. Despite a slowdown in demand from China, developing countries, including China, accounted for 80% of the global energy demand increase. Energy demand in developed economies returned to growth after recent declines, rising by nearly 1%.
The electricity sector led the rise in global energy demand, with global electricity consumption growing by 4.3% in 2024, nearly double the average growth from 2013-2023. This sharp rise was due to record temperatures, increased cooling needs, industrial consumption, electrification of transportation, and the growth of data centers and artificial intelligence.
For the first time, renewable and nuclear energy accounted for 40% of global electricity production. The new renewable energy capacity installed worldwide last year reached a record 700 gigawatts for the 22nd consecutive year. Renewable and nuclear sources met 80% of the global increase in electricity production, contributing to 40% of the total.
Natural gas saw the strongest demand growth among fossil fuels, with a 115 billion cubic meter increase, surpassing the 75 billion cubic meter annual average of the past decade. Global oil demand grew by 0.8%, while its share in total energy demand dropped below 30% for the first time. Coal demand grew by 1%, with China and India accounting for more than 90% of the global increase.
According to the report, the rapid adoption of clean energy technologies helped limit the annual rise in carbon emissions from the global energy sector. However, rising energy demand due to record temperatures led to a 0.8% increase in carbon emissions, reaching 37.8 billion tons. The use of renewable sources, nuclear energy, electric vehicles, and heat pumps prevented the release of 2.6 billion tons of CO2 annually since 2019, equivalent to 7% of global emissions.
In developed economies, carbon emissions decreased by 1.1% in 2024, marking the lowest level in 50 years. Most of last year's increase in carbon emissions came from developing countries outside China. Although carbon emissions in China are projected to slow in 2024, its per capita emissions remain 16% above those of developed economies and nearly twice the global average.
IEA President Fatih Birol commented on the report, noting the uncertainty in the world but emphasizing that electricity consumption is increasing so rapidly that it has even reversed the decline in energy demand in developed countries. "As a result, demand for all major fuels and energy technologies increased in 2024, with renewable energy taking the largest share, followed by natural gas. The strong growth in solar, wind, nuclear energy, and electric vehicles is gradually weakening the link between economic growth and emissions," Birol stated.
