Global energy demand surged in 2024, with both developed and emerging economies contributing to a sharp increase, nearly doubling the growth rate seen in recent years, according to the International Energy Agency (IEA).
In its annual report, Global Energy Review 2025, the IEA highlighted a 4.3% rise in global power consumption last year. This growth was driven by record-high temperatures, increased industrial demand, a push for electrification, and the growing energy needs of AI and data centers.
This rise in power demand was nearly twice the annual average seen over the last decade. Consequently, the world’s total energy demand grew by 2.2% in 2024, much faster than the average annual growth rate of 1.3% from 2013 to 2023.
Despite slower growth in China, emerging and developing economies were responsible for more than 80% of the increase in global energy demand in 2024. Additionally, advanced economies saw a rebound in energy demand after years of decline, with a nearly 1% increase in consumption, the report found.
While much of the global demand was met by renewables, the IEA noted that consumption of natural gas, coal, and nuclear energy also increased. The strongest demand growth among fossil fuels was seen in natural gas, which rose by 2.7%, or 115 billion cubic meters (bcm), compared to the average annual increase of around 75 bcm over the past decade. Coal demand also rose by 1%, driven by extreme heat waves in China and India.
IEA Executive Director Fatih Birol commented, “Electricity use is growing rapidly, driving overall energy demand in a way that has reversed years of declining consumption in advanced economies.” He added, “As a result, demand for all major fuels and energy technologies increased in 2024, with renewables leading the way, followed by natural gas.”
Earlier this month, Birol acknowledged the need for continued investment in existing oil and gas fields to support global energy security, a shift from the IEA’s previous stance that no new oil and gas fields were needed to achieve net-zero emissions by 2050.
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