Power Demand Accelerates Globally
The demand for energy worldwide surged significantly in 2024, nearly doubling the growth rate of previous years. According to the Global Energy Review 2025, global power consumption rose by 4.3% last year, driven by factors such as record-high temperatures, increased industrial activity, electrification efforts, and the expanding needs of artificial intelligence and data centers. This sharp rise in power consumption was nearly twice the annual average growth rate recorded over the past decade.
As a result of this surge, total global energy demand grew by 2.2% in 2024, far exceeding the 1.3% average annual growth observed between 2013 and 2023. While the slowdown in China’s economic expansion tempered overall growth, emerging and developing markets were responsible for more than 80% of the increased global energy demand. Meanwhile, after experiencing a period of decline, advanced economies also saw an uptick in energy consumption, rising by nearly 1% in total.
Fossil Fuels and Renewables Meet Rising Demand
Despite a strong shift towards renewable energy, the demand for fossil fuels also increased to keep up with global energy needs. Natural gas saw the largest rise among fossil fuels, with demand increasing by 115 billion cubic meters (bcm) in 2024, a sharp jump compared to the average annual growth of 75 bcm over the previous decade. Coal consumption also climbed by 1%, primarily due to extreme heatwaves in China and India, which drove up cooling needs.
Although renewable energy sources played a key role in meeting rising power demand, they were not sufficient to replace traditional energy sources entirely. Nuclear energy consumption also rose, further contributing to the global energy mix. According to energy experts, the rapid growth in electricity consumption is reshaping energy markets, reinforcing the need for a balanced approach to meeting demand while transitioning towards more sustainable energy solutions.
The Future of Energy and Global Investments
Fatih Birol, Executive Director of the International Energy Agency (IEA), highlighted the significant shift in global energy consumption patterns, stating, “Electricity use is growing rapidly, driving overall energy demand to levels that have reversed years of declining consumption in advanced economies.” He noted that while renewables accounted for the largest share of energy growth, natural gas remained a key player in meeting rising demand.
Earlier this month, Birol also acknowledged the importance of continued investments in existing oil and gas fields to ensure Global Energy demand. This marked a shift in the IEA’s stance, as the agency had previously asserted that new investments in oil and gas fields would not be necessary to achieve net-zero emissions by 2050. The evolving energy landscape underscores the challenge of balancing energy security with sustainability, as nations work towards reducing carbon emissions while keeping up with growing energy needs.
