Global Energy Demand Surges in 2024 as Electricity Consumption Soars, IEA Reports

Global energy demand surged in 2024, fueled by rising electricity consumption, according to a new report released by the International Energy Agency (IEA). Electricity use jumped by nearly 1,100 terawatt-hours (TWh), marking a 4.3% increase—almost twice the annual average growth rate of the past decade.

The spike in electricity demand was attributed to multiple factors, including the widespread adoption of electric vehicles, soaring global temperatures that drove record cooling needs, increased industrial activity, and the rising energy consumption of data centers and artificial intelligence applications.

Renewables Lead Energy Expansion

The IEA’s Global Energy Review highlighted the critical role of renewables in meeting the world’s growing energy needs. A record-breaking 700 gigawatts (GW) of new renewable capacity was added in 2024, marking the 22nd consecutive year of record growth. Alongside nuclear power—which recorded its fifth-highest growth in three decades—renewables accounted for 80% of the global electricity supply increase.

For the first time, renewable and nuclear power combined to generate 40% of the world’s total electricity. IEA Executive Director Fatih Birol underscored the significance of these trends, stating: “Electricity use is growing rapidly, reversing years of declining energy consumption in advanced economies. The strong expansion of solar, wind, nuclear power, and EVs is increasingly loosening the links between economic growth and emissions.”

Shifting Fossil Fuel Trends

Among fossil fuels, natural gas saw the largest increase, rising by 115 billion cubic meters (bcm) or 2.7%, largely due to rising electricity demand. In contrast, oil demand grew at a modest 0.8%, marking a historic shift as oil fell below 30% of total energy demand for the first time since its peak at 46% in the 1970s. The rapid growth of electric vehicle adoption played a key role, with EV sales jumping more than 25%, now accounting for one in every five cars sold globally.

Coal consumption increased by 1%, though its growth has slowed significantly compared to previous years. Intense heatwaves in China and India accounted for over 90% of this rise.

CO2 Emissions: A Mixed Picture

Emissions data provided a mix of concerns and progress. While global CO2 emissions rose 0.8% to 37.8 billion tonnes in 2024, emissions in advanced economies declined by 1.1%, falling to 10.9 billion tonnes—a level not seen in 50 years. The IEA estimates that clean energy technologies deployed since 2019 are now preventing 2.6 billion tonnes of CO2 annually, equivalent to 7% of global emissions.

Dr. Birol highlighted the broader implications: “From slowing global oil demand growth and rising deployment of electric cars to the rapidly expanding role of electricity and the increasing decoupling of emissions from economic growth, many of the key trends the IEA has identified ahead of the curve are showing up clearly in the data for 2024.”