Global energy demand rose 1.7 per cent in 2025, with renewables emerging as the largest source of total energy supply growth for the first time outside a recession, even as global emissions increased 1.1 per cent and regional energy transition pathways diverged sharply, according to the 75th edition of the Statistical Review of World Energy released by the Energy Institute in partnership with Ember and in collaboration with KPMG and Kearney.
The report highlights a central challenge for the global energy transition. Electricity demand is rising rapidly because of electric vehicles, artificial intelligence and data centres, while renewable energy deployment is accelerating. However, overall energy demand continues to grow, fossil fuel use remains high and emissions continue to increase.
The Statistical Review found that total energy supply increased 1.7 per cent in 2025, with all major energy sources reaching record highs for the second consecutive year. Renewables accounted for the largest share of total energy supply growth, with solar power contributing 72 per cent of the increase.
Global electricity demand rose 3 per cent, outpacing overall energy demand. For the first time, all additional electricity demand was met by low carbon sources, with renewables and hydropower overtaking coal as the largest source of electricity generation. Fossil fuel-based power generation declined overall.
Solar generation expanded 30 per cent globally, while battery capacity increased 66 per cent, reinforcing their position as the fastest growing clean energy technologies.
Despite these gains, global emissions increased 1.1 per cent. Efficiency improvements relative to gross domestic product remained at 2 per cent, only half the 4 per cent annual improvement targeted under the 2023 United Nations Climate Change Conference, or Conference of the Parties 28 (COP28).
The Asia Pacific region strengthened its position as the world’s renewable energy powerhouse, accounting for 64 per cent of new global solar capacity additions. China alone contributed 62 per cent of global added solar capacity and installed more wind and solar power than the rest of the world combined.
Outside China, solar generation across the region rose almost 19 per cent and wind generation increased more than 21 per cent.
However, the region also remained the largest source of global emissions, accounting for 52 per cent of worldwide emissions, 47 per cent of global energy demand and 83 per cent of global coal consumption in 2025.
Coal consumption in the region exceeded 138 exajoules, driven largely by China and India. Oil demand growth slowed to 1.7 per cent annually, while gasoline and diesel consumption remained broadly flat over the past two years.
China remained both the world's largest clean energy manufacturer and deployer as well as its biggest coal producer, coal consumer and oil refiner, accounting for 30.5 per cent of global emissions. Although China’s emissions growth slowed to 0.3 per cent, emissions increased more rapidly in Indonesia at 4.8 per cent, Vietnam at 4.8 per cent and Malaysia at 2.4 per cent.
India’s fossil fuel consumption remained broadly unchanged in 2025, with oil and coal demand each rising only 0.3 per cent while natural gas consumption declined by almost 6 per cent.
Overall fossil fuel use recorded no growth during the year, although fossil fuels still accounted for 93 per cent of India’s energy supply. The report said this share was the lowest since the Statistical Review dataset began, indicating a gradual diversification of India’s energy system.
Renewable electricity generation in India increased nearly 24 per cent. Behind the meter solar capacity grew almost 40 per cent to 43.6 gigawatts, while emissions rose only 0.9 per cent.
Pakistan also recorded rapid solar growth, with behind the meter and off grid solar capacity increasing from 2.1 gigawatts in 2021 to 23.4 gigawatts in 2025, enabling solar power to supply more than one fifth of the country's electricity.
The report also points to changing geopolitical dynamics in energy markets.
Oil production in the Americas increased 4.8 per cent, helping reduce the impact of tensions in West Asia. The region now produces 20 per cent more oil than West Asia, reversing the situation from two decades ago.
The United States recorded a 3.2 per cent increase in emissions, driven by a 13 per cent rise in coal fired power generation. In absolute terms, this represented four times the emissions growth recorded by China.
The report also introduced new global data showing data centres consumed 788 terawatt hours of electricity in 2025, with 40 per cent of that demand originating in the United States.
Andy Brown, President of the Energy Institute, said energy continued to dominate the global political and economic agenda as countries balanced energy security, affordability and sustainability.
“In this, the 75th edition of the Statistical Review of World Energy, energy remains at the forefront of the world’s political and economic agenda, shaped by changing priorities on energy security, affordability and sustainability. To satisfy the continued insatiable growth in energy demand, we again see growth in all sources of total energy supply. This rigorous dataset is the cornerstone of understanding how these shifting priorities are shaping our global energy landscape,” Brown said.
Nick Wayth, Chief Executive of the Energy Institute, said the findings highlighted both progress and urgency.
“This year’s Review shows an energy system at a tipping point: record demand, a historic breakthrough in low carbon electricity, and sharply diverging regional pathways. We see encouraging substitution of fossil fuels in power, yet global emissions continue to rise and energy security pressures intensify. These findings underline the urgency of accelerating efficiency, electrification and investment in clean technologies worldwide,” he said.
Aditya Lolla, Interim Managing Director at Ember, said renewable energy growth was increasingly being driven by economics rather than policy mandates.
“The geopolitical fault lines of global energy markets are once again exposed. Even before the second major fossil shock in four years, the data show that global energy supply growth is increasingly renewable and electric, driven by the hard economics of efficiency and security more than by mandate. Trusted, impartial data has never been more critical, and this Review will help equip decision makers worldwide with exactly that,” Lolla said.
Wafa Jafri, Partner and United Kingdom Lead for Energy and Natural Resources Strategy at KPMG, said the centre of gravity of global oil production had shifted towards the Americas, changing trade flows and regional energy strategies.
Maria de Kleijn, Europe Lead for Sustainability and Partner at Kearney, said renewable energy had moved beyond being a niche contributor, but added that the next phase of the transition would depend on investments in electricity grids, energy storage and system flexibility to ensure clean energy growth translates into wider economic and social benefits.