Surging global power demand in 2024 pushed energy consumption to nearly twice the pace of recent years, according to the International Energy Agency’s (IEA) Global Energy Review 2025 report, released on Monday.
The report attributed the sharp rise in demand to record-high temperatures, industrial expansion, increasing electrification, and the rapid growth of artificial intelligence (AI) and data centers.
“What is certain is that electricity use is growing rapidly, pulling overall energy demand along with it to such an extent that it is enough to reverse years of declining energy consumption in advanced economies.”
IEA Executive Director Fatih Birol
The IEA estimated that global power consumption increased by 4.3% in 2024, almost double the average annual growth rate of the last decade.
This spike reversed years of declining energy use in advanced economies and signaled a new era of rising energy demand worldwide.
Emerging and developing economies accounted for over 80% of the global energy demand increase in 2024, driven by growing industrial activity, urbanization, and expanding digital infrastructure.
Despite a slowdown in China’s economic growth, its energy consumption remained a major contributor to the global rise.
For the first time in years, advanced economies also recorded an increase in energy demand, rising by nearly 1%.
This marks a shift from previous years, where improvements in energy efficiency and a move toward renewables had led to reduced energy consumption in wealthier nations.
The IEA found that the world’s overall energy demand increased by 2.2% in 2024, compared to the average annual growth of 1.3% between 2013 and 2023.
Renewables Lead Energy Growth
Despite the rapid growth in electricity consumption, renewables covered the largest share of the demand increase, followed by natural gas.
However, coal and nuclear power also experienced demand growth due to the sheer scale of electricity needs.
“The result is that demand for all major fuels and energy technologies increased in 2024, with renewables covering the largest share of the growth, followed by natural gas.”
IEA Executive Director Fatih Birol
Natural gas consumption saw the strongest growth among fossil fuels, rising by 115 billion cubic meters (bcm), or 2.7%, far exceeding the previous decade’s average annual growth of 75 bcm.
Gas consumption increased significantly as governments sought reliable, lower-emission alternatives to coal.
Meanwhile, coal demand rose by 1%, largely due to severe heat waves in China and India, which forced authorities to rely on coal-fired power plants to meet soaring electricity needs.
The report highlighted record-breaking heat waves in 2024 as a key factor behind the surge in energy demand. Many regions faced higher air conditioning and cooling needs, straining power grids and increasing electricity consumption.
The rapid growth of AI and data centers also played a major role in increasing global power consumption.
AI-driven industries require massive computing power, leading to heightened electricity usage in developed and emerging economies alike.
Increased electrification in transportation, industrial processes, and heating systems further fueled demand.
The shift toward electric vehicles (EVs), industrial automation, and electrified residential heating systems contributed to the power surge, particularly in regions where governments have encouraged clean energy adoption.
IEA Revises Stance on Oil and Gas Investments
In light of these trends, the IEA has subtly adjusted its position on oil and gas investments. While the agency previously emphasized that no new oil and gas projects were necessary to achieve net-zero emissions by 2050, it now acknowledges that investments in existing fields are crucial to ensuring global energy security.
Birol admitted earlier this month, “The world needs upstream investments in existing oil and gas fields to support energy security.”
This revision reflects the reality that while renewable energy is expanding rapidly, global energy systems still depend on fossil fuels to meet growing demand.
The IEA’s Global Energy Review 2025 paints a picture of an increasingly energy-hungry world, driven by economic growth, industrialization, and electrification.
While renewables are leading the charge, fossil fuels remain integral to the global energy mix, highlighting the need for a balanced and diversified approach to energy policy.
As the world grapples with climate change, energy security, and economic development, governments and industry leaders must make critical decisions about how to sustainably power the future.
