Electricity use drove energy demand up 2.2% in 2024, CO2 emissions up 0.8%: IEA

New Delhi: Global energy demand increased by 2.2 per cent in 2024, compared to an average annual growth of 1.3 per cent between 2013 and 2023, according to the Global Energy Review released by the International Energy Agency (IEA). The IEA attributed the rise primarily to increased global electricity consumption.

The report stated that emerging and developing economies accounted for over 80 per cent of the total energy demand increase. In China, energy consumption rose by less than 3 per cent, which was half the growth rate recorded in 2023. Advanced economies registered a return to growth, with a nearly 1 per cent increase in energy demand after years of decline.

Electricity demand drives growth

Global electricity consumption surged by nearly 1,100 terawatt-hours in 2024, representing a 4.3 per cent increase. The IEA said the sharp increase was driven by record global temperatures, higher industrial use, growth in electric transport, and expansion of data centres and artificial intelligence infrastructure. This growth rate was nearly double the average annual rise in electricity use over the last decade.

Renewables and gas supply meet increased demand

Renewables and natural gas covered most of the additional demand in 2024. Around 700 gigawatts of new renewable power capacity was added globally, marking the 22nd consecutive year of record additions. Nuclear capacity additions reached their fifth-highest level in the last 30 years. As a result, 80 per cent of the increase in global electricity generation in 2024 was met by renewables and nuclear, which together accounted for 40 per cent of total generation for the first time.

Natural gas-fired power generation also increased steadily. Gas demand rose by 115 billion cubic metres (bcm) or 2.7 per cent, compared to the average of 75 bcm per year over the past decade.

IEA Executive Director Fatih Birol said, *"There are many uncertainties in the world today and different narratives about energy – but this new data-driven IEA report puts some clear facts on the table about what is happening globally."

"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," he added.

Oil and coal consumption

Oil demand grew by 0.8 per cent in 2024. Its share in total energy demand fell below 30 per cent for the first time, 50 years after peaking at 46 per cent. A 25 per cent increase in electric car sales contributed to reduced oil consumption in the transport sector. Electric vehicles made up one in five new car sales globally.

Coal demand rose by 1 per cent, half the increase recorded in the previous year. The IEA attributed over 90 per cent of the increase in coal consumption to intense heatwaves in China and India, which increased demand for cooling.

CO2 emissions and decoupling from GDP

Energy-related carbon dioxide (CO2) emissions rose by 0.8 per cent in 2024 to reach 37.8 billion tonnes. The IEA said this growth was limited due to the increasing deployment of clean energy technologies, including solar PV, wind, nuclear, electric vehicles, and heat pumps. These technologies have prevented an estimated 2.6 billion tonnes of CO2 annually, equivalent to 7 per cent of global emissions.

CO2 emissions in advanced economies declined by 1.1 per cent to 10.9 billion tonnes, the lowest level in 50 years, even as their collective GDP is now three times larger than it was five decades ago. Most of the increase in global emissions came from emerging and developing economies excluding China.

While emissions growth in China slowed in 2024, the country’s per capita emissions are now 16 per cent higher than those in advanced economies and nearly twice the global average.

IEA Executive Director Dr Birol said, "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."