In 2024, India witnessed the second-highest growth in energy demand after China in absolute terms – more than the increase in all advanced economies combined, according to the Global Energy Review 2025 by the International Energy Agency (IEA).

The global energy demand and consumption also increased in 2024, driven primarily by increased air conditioning usage due to extreme temperatures, a growing industrial segment, expanding data centers, and rising transport sector electrification.

However, a significant development in solar, wind, nuclear, and heat pump technology saved over 30 exajoule (EJ) of fossil fuel energy demand between 2019 and 2024.

Energy Demand Trends

Global energy demand for all fuels and technologies grew 2.2% in 2024, faster than the average increase of 1.3% in the previous decade. This growth was driven mainly by the power sector, with electricity demand rising 4.3% compared to the 3.2% global GDP increase. Record temperatures, increasing electrification, and digitalization caused the power sector’s demand to grow.

Emerging and developing economies comprised more than 80% of the global energy demand increase.

However, emerging markets and developing countries still accounted for four-fifths of the total global energy demand growth. Three-fifths of the total demand growth came from Asian developing countries. India’s demand growth was greater than the increase in all advanced economies combined.

The U.S. experienced the third-largest demand growth after China and India. The European Union (EU) witnessed energy demand growth for the first time since 2017, excluding the post-Covid increase in 2021.

Extreme temperatures impacted global energy consumption considerably in 2024, the warmest year on record. Worldwide cooling degree days (a measure of cooling needs) were 6% higher than in 2023 and 20% more than the long-term average between 2000 and 2020.

Energy Consumption Trends

Electricity consumption worldwide rose by approximately 1,080 TWh. This increase was over twice the average yearly growth in the previous decade and was the highest ever, except when the global economy recovered from recession.

China comprised over 50% of the global electricity consumption growth. Other emerging and developing economies witnessed a 4% increase.

Advanced economies witnessed a 140 TWh reduction in electricity consumption in 2023, caused by soft industrial production in some countries and milder weather conditions. This trend was inverted in 2024, with consumption increasing by 230 TWh, driven by growth in the U.S. The EU’s electricity consumption rose approximately 1.5% from the net-zero average growth between 2003 and 2023. Australia and South Korea also experienced increased growth.

Electricity consumption in China grew by over 550 TWh or 7%.

Consumption growth in India slowed in 2024 from the previous year, marking a normalization after unfavorable climate conditions pushed demand up in the previous year. Consumption in Southeast Asia surged by more than 7%, up from 4% in 2023.

Electricity consumption from buildings rose by over 600 TWh or 5% worldwide, comprising approximately 60% of the total consumption growth. This rise was driven primarily by the increasing demand for air conditioning caused by severe heat waves in countries such as China and India.

New data centers also increased electricity consumption, with global installed capacity rising by around 15 GW or 20%.

The industry sector caused approximately 40% of the total electricity demand growth. The sector consumed roughly 4% of the total electricity, fuelled by electro-intensive manufacturing activity and industrial growth.

Ongoing growth in electric vehicle (EV) use caused transport electricity consumption to grow by 8%.

Electric Vehicles

In 2024, global electric car sales grew by more than 25%. Sales of such cars crossed 17 million units, experiencing an over 21% growth from 2023 and comprising one-fifth of all car sales.

EVs comprised more than 20% of the total global car sales. China led this growth, with nearly two-thirds of the worldwide electric cars being sold in the country. Its EV sales grew 40% from the previous year. Plug-in hybrid electric vehicles contributed significantly to this growth, witnessing an 80% increase in sales. Sales of battery electric vehicles saw a nearly 20% rise. This growth is supported by a rising demand for extended-range electric vehicles, which are mostly prevalent in China.

Emerging and developing economies outside China experienced an 80% increase in annual EV sales.

The U.S. witnessed over 10% EV sales growth, primarily supported by EV tax credits and the release of newer vehicle models. EU witnessed a 6% drop in electric car sales. This decline was caused mostly by the decreasing sales in Germany, where purchase subsidies were removed in 2023. Outside the EU, the United Kingdom benefitted from its Zero-Emission Vehicle mandate. The country witnessed the highest battery electric car sales compared to EU countries.

Renewable Energy Growth

Renewable energy supply grew by 38% in 2024, the highest global energy source.

Renewable and nuclear sources comprised 80% of the global electricity generation growth, contributing 40% of total generation for the first time, with renewables alone supplying 32%.

Solar power generation expanded the most of all the renewable sources, increasing by 480 TWh. Wind generation increased by approximately 180 TWh because of the commissioning of new projects.

However, wind generation’s 8% annual growth rate was the lowest this year in the last two decades because of a high base and licensing and permitting issues across multiple regions.

Hydroelectricity generation rose 190 TWh, driven primarily by wet weather in many large economies. It contributed the most energy generated by all renewable sources, at 14%. Hydropower was followed by wind at 8%, solar at 7%, and waste and bioenergy at 3%.

China generated 35% of its electricity from renewables, the second highest after the generation from coal. Renewable energy generation comprised 20% of the total electricity in India.  Southeast Asia generated a quarter of its energy from renewable sources.

In the U.S., renewable energy comprised 23% of the total generation, coming second after natural gas. Renewable energy comprised roughly 50% of the total electricity generated in the EU, significantly above the world average.

Global yearly renewable energy capacity additions grew approximately 25% to 700 GW. This expansion marks the 22nd year of renewable sources, setting a new growth record.

Solar comprised more than three-quarters of these additions. It was followed by wind with 17% and hydropower with 4%. Solar capacity additions grew nearly 30% or by 550 GW year-over-year in 2024. These additions increased the total global installed solar capacity to roughly 2.2 TW.  Wind capacity experienced a stable annual addition of approximately 120 GW. Solar and wind generation comprised 95% of the total renewable energy capacity growth.

Hydropower installations increased to over 25 GW, driven by major projects commissioned in China, Africa, and Southeast Asia.