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Extreme weather events, particularly high temperature, significantly impacted energy demand, driving 20 per cent of the growth in both natural gas and electricity demand, and contributing to a surge in coal use in 2024, according to a new report released by the International Energy Agency (IEA).
The report titled Global Energy Review 2025 was released on March 24, 2025.
According to the report, global electricity demand increased by 4.3 per cent in 2024, a step change from the 2.5 per cent growth seen in 2023.
Rising global electricity use was driven by factors such as increasing cooling demand resulting from extreme temperatures, growing consumption by industry, the electrification of transport, and the expansion of the data centre sector.
Extreme temperatures in 2024 – the warmest year recorded, surpassed the previous record set in 2023. Global cooling degree days (a measure of cooling needs) were 6 per cent higher in 2024 than in 2023. Regions with high cooling demand were particularly affected, including China, India and the United States.
The buildings sector drove higher electricity demand in 2024, growing four times faster than in 2023. Global electricity consumption in buildings increased by more than 600 terawatt-hours (TWh) or five per cent in 2024, accounting for nearly 60 per cent of total growth in electricity consumption. Key drivers included rising demand for air conditioning, which was bolstered by severe heat waves in countries such as China and India, and demand for power from new data centres.
The industry sector made up nearly 40 per cent of total growth in electricity demand in 2024. Electricity use in industry grew by nearly 4 per cent in 2024, a step up from the pace in 2023, driven by increased activity in electro-intensive manufacturing and industrial growth more broadly.
The continued uptake of electric vehicles raised electricity consumption in the transport sector by over 8 per cent in 2024. Global sales of electric cars rose by over 25 per cent, surpassing 17 million units, up from below 14 million units in 2023.
Nearly all of the rise in electricity demand was met by low-emissions sources, led by the record-breaking expansion of solar PV capacity, with further growth in other renewables and nuclear power.
In 2024, 80 per cent of the growth in global electricity generation was provided by renewable sources and nuclear power. Together, they contributed 40 per cent of total generation for the first time, with renewables alone supplying 32 per cent.
In 2024, over 7 GW of nuclear power capacity was brought online, 33 per cent more than in 2023. The new capacity added was the fifth-highest level in the past three decades.
Global coal demand rose by 1 per cent. China remained the largest coal consumer globally, accounting for a record 58 per cent of global coal use.
According to the report, the global increase of 300 million tonnes of CO2 was influenced by record high temperatures.
Natural gas emissions rose by around 2.5 per cent (180 Mt CO2) in 2024, making it the largest contributor to global carbon emissions growth. This increase was driven by higher consumption in China, the United States, the Middle East, and India.
Global coal emissions rose by 0.9 per cent (135 Mt CO2) in 2024. The increase was primarily fuelled by growing coal consumption in China, India and Southeast Asia.
Despite the increase in emissions, five clean energy technologies — solar PV, wind power, nuclear power, electric cars and heat pumps are making a difference.