The global energy system in 2024 was marked by simultaneous acceleration in renewables and record-high overall energy consumption, highlighting the complexity and disorder in the ongoing energy transition.
Total energy demand rose by 2 percent to a historic high of 592 exajoules (EJ), with electricity demand growing even faster at 4 percent, underscoring the deepening role of electrification in global energy use, the Energy Institute’s Statistical Review of World Energy 2025 said in June.
Wind and solar energy expanded by 16 percent, making them the fastest-growing sources and growing nearly nine times faster than total energy demand. China alone accounted for 57 percent of new renewable additions, with solar capacity almost doubling in just two years.
Despite this, fossil fuel consumption also increased by just over 1 percent, meeting 60 percent of the additional energy demand. This dual growth led to a fourth consecutive year of record CO₂-equivalent emissions from energy, which rose by 1 percent in 2024, despite climate urgency.
Investment in energy infrastructure surged across all categories. Renewables attracted significant capital, especially in China and emerging markets, while global gas demand rebounded by 2.5 percent following the 2023 slump.
Coal demand in India grew by 4 percent, highlighting rising energy needs in developing economies. All energy sources — including oil, coal, gas, nuclear, hydro, wind, and solar — achieved record consumption levels for the first time since 2006, driven by intensifying geopolitical uncertainties and energy security concerns.
Spending trends show diverging priorities. While emerging markets focused on scaling access and capacity, developed markets such as Europe faced economic constraints, with high interest rates and supply chain pressures slowing renewable rollouts. Electrification remained a major investment theme globally, especially for grid modernization and clean generation, reflecting its central role in decarbonization strategies.
Despite growing awareness and commitments, the pace of transition lags behind demand growth. The energy transition remains fragmented and regionally unbalanced, with fossil fuels not yet being replaced but supplemented by renewables. The call from global energy leaders is clear: structural challenges must be met with accelerated, coordinated action to deliver an affordable, secure, and low-carbon future.
Ember views
The Energy Institute’s Statistical Review of World Energy 2025 highlights a rapidly transforming global energy landscape, with electricity and renewables driving the shift. According to Kingsmill Bond of think tank Ember, fossil fuel demand has plateaued, and the global energy “trilemma” — balancing sustainability, affordability, and security — has effectively been solved through cheaper, local, and clean electrification technologies.
In 2024, 74 percent of electricity growth came from clean sources, and early 2025 data shows all additional electricity demand is being met by clean energy. Electricity accounted for nearly two-thirds of primary energy demand growth, which rose by 2 percent globally — higher than the 1.3 percent average of the past decade, due to slower efficiency gains, especially in China. If efficiency rebounds, fossil fuel demand could begin declining in 2025.
Oil demand in China fell by 1.2 percent in 2024, indicating a peak, while global oil demand grew just 0.7 percent. Overall fossil fuel demand is only slightly above pre-pandemic levels, underscoring the rising importance of the electricity sector in the global energy transition.
Baburajan Kizhakedath