A surge in global temperatures and extreme weather events drove a 20% increase in natural gas and electricity demand in 2024, contributing to a rise in coal consumption, according to the Global Energy Review 2025 released by the International Energy Agency (IEA) on March 24, 2025.
Soaring Electricity Demand
Global electricity consumption grew by 4.3% in 2024, nearly doubling the 2.5% growth recorded in 2023. The main drivers were:
- Increased cooling demand due to extreme heatwaves, particularly in China, India, and the U.S.
- Industrial expansion, especially in electro-intensive manufacturing
- Electrification of transport, with electric vehicle (EV) sales rising by over 25%, surpassing 17 million units
- Booming data centres, requiring massive power consumption
- The buildings sector accounted for 60% of the growth, with air conditioning demand surging due to record-breaking heatwaves.
Renewable Energy Gains But Coal Still Rising
Renewable and nuclear power met 80% of the additional electricity demand, with renewables alone supplying 32% of global electricity for the first time. The expansion of solar PV led the charge, alongside 7 GW of new nuclear power capacity the highest addition in three decades.
Despite clean energy progress, coal demand increased by 1%, with China consuming a record 58% of global coal.
The global CO2 increase of 300 million tonnes in 2024 was heavily influenced by record high temperatures.
Natural gas emissions jumped 2.5% (180 Mt CO2), led by rising consumption in China, the U.S., the Middle East, and India.
Coal emissions rose 0.9% (135 Mt CO2), driven by China, India, and Southeast Asia.
Despite growing emissions, five clean technologies solar PV, wind power, nuclear power, EVs, and heat pumps are playing a crucial role in slowing fossil fuel reliance.
With extreme weather fueling global energy demand, balancing energy security with climate goals remains a critical challenge for policymakers worldwide.