Global Energy Demand Rises by 2.2% in 2024, Driven by Electricity Consumption and Emerging Markets

Global energy demand increased by 2.2 percent in 2024, surpassing the annual average of 1.3 percent recorded between 2013 and 2023, according to a new report from the International Energy Agency (IEA). The surge was fueled by rising electricity consumption and growth in emerging economies.

The power sector played a crucial role in driving this increase, with global electricity consumption climbing by nearly 1,100 terawatt-hours, or 4.3 percent. The rise was attributed to extreme temperatures increasing cooling demand, higher industrial use, the expansion of data centers and artificial intelligence, and the continued electrification of transport.

Renewables Lead Energy Growth

Renewable energy sources accounted for 38 percent of the total growth in energy supply, followed by natural gas at 28 percent, coal at 15 percent, oil at 11 percent, and nuclear power at 8 percent. The expansion of solar, wind, nuclear power, and electric vehicles is helping reduce the link between economic growth and carbon emissions, according to IEA Executive Director Fatih Birol.

New renewable energy installations set records for the 22nd consecutive year, with around 700 gigawatts added in 2024—80 percent of which came from solar photovoltaic. Additionally, over 7 GW of nuclear power capacity was brought online, marking a 33 percent increase compared to 2023. This was the fifth-highest level of nuclear capacity added in the past three decades, contributing to a 100 TWh rise in nuclear-generated electricity.

The IEA’s report coincides with increasing efforts by countries like Saudi Arabia to diversify their energy mix. Saudi Arabia’s National Atomic Energy Project, launched in 2017, is central to the Kingdom’s strategy to reduce reliance on fossil fuels and achieve its net-zero emissions target by 2060. In January, Energy Minister Prince Abdulaziz bin Salman announced plans for the Kingdom to start uranium enrichment and sales.

A separate IEA report stated that annual investments in nuclear energy must double to $120 billion by 2030 to support growing infrastructure demands.

Emerging Economies Drive Energy Demand Growth

Emerging and developing economies accounted for over 80 percent of the increase in global energy demand in 2024. Despite slower growth in China—where energy consumption rose by less than 3 percent, half its 2023 rate—the country still saw the largest absolute increase in demand. India ranked second, surpassing the combined increase of all advanced economies.

Southeast Asia’s energy demand rose by 4.2 percent, followed by the Middle East at 2.2 percent and Europe at 0.5 percent. Advanced economies, after years of decline, saw energy demand rise nearly 1 percent.

Oil and Gas Trends

The report highlighted a slowdown in global oil demand growth, which rose by just 0.8 percent in 2024—down from 1.9 percent in 2023. For the first time in history, oil’s share of total energy demand fell below 30 percent, five decades after peaking at 46 percent. While oil demand for global road transport declined, aviation and petrochemical sectors saw an increase.

OPEC provided a contrasting outlook in February, forecasting world oil demand to rise by 1.45 million barrels per day in 2025 and 1.43 million bpd in 2026, driven by increased air and road travel.

Natural gas demand recorded the strongest growth among fossil fuels, rising by 115 billion cubic meters, or 2.7 percent—exceeding the decade-long annual average of 75 bcm. China led this growth with a 7 percent increase, followed by strong demand in other Asian economies. The US saw gas consumption expand by around 2 percent, while the EU experienced modest growth, particularly in industrial use.

Emissions and Sustainability

The rapid adoption of clean energy technologies helped curb the rise in energy-related carbon dioxide emissions in 2024. Despite record-high temperatures contributing to a 0.8 percent increase in global CO2 emissions to 37.8 billion tonnes, renewable energy deployment has helped mitigate emissions by 2.6 billion tonnes annually—equivalent to 7 percent of total global emissions.

Emissions in advanced economies fell by 1.1 percent to 10.9 billion tonnes, a level last seen 50 years ago, underscoring the impact of shifting towards cleaner energy sources.