The global energy landscape is undergoing significant transformation as clean energy technologies set consecutive deployment records whilst overall energy demand accelerates. 

The International Energy Agency’s Global Energy Review 2025 reveals that despite reaching new highs in energy-related carbon emissions, the deployment of solar PV, wind power, nuclear, electric vehicles, and heat pumps is now preventing 2.6 billion tonnes of CO₂ emissions annually – equivalent to 7% of global emissions.

Market intelligence teams navigating this complex transition face unprecedented challenges. In 2024, global energy demand grew by 2.2%, surpassing the previous decade’s average of 1.3%, while electricity demand surged by 4.3% – more than twice the annual average over the past decade.

This acceleration, driven by extreme weather conditions, electrification trends, and digital transformation, is reshaping the global energy ecosystem.

For competitive intelligence analysts, the regional divergence in energy trends presents strategic opportunities and risks.

Whilst emissions in advanced economies fell by 1.1%, emerging market and developing economies saw a 1.5% increase in energy-related CO₂ emissions.

China’s emissions growth slowed markedly to 0.4% despite record temperatures driving cooling demand, largely due to massive renewable energy deployment.

India, meanwhile, experienced the highest emissions growth rate among major economies at 5.3%, driven by rapid economic expansion.

This analysis provides market intelligence professionals with data-driven insights on how clean energy technologies are making measurable impact amidst accelerating energy demand.

The strategic deployment of market intelligence platforms capable of processing such complex, interconnected data sets will be essential for organisations navigating the rapidly evolving energy transition landscape.

Research Context

The International Energy Agency’s Global Energy Review 2025 represents the most comprehensive and authoritative analysis of global energy market trends.

Published in March 2025, this annual report leverages real-time data from power system operators worldwide, statistical submissions from national administrations, and market intelligence from across the energy sector.

The IEA’s methodology incorporates data on technology deployments from national statistics, industry associations, and commercial data providers, making it particularly valuable for market intelligence professionals seeking to understand structural shifts in energy markets.

The report’s scope encompasses emissions from all fossil fuel use for energy purposes, industrial processes, and international aviation and marine bunkers, providing a complete picture of global energy-related carbon emissions.

Market intelligence teams can trust this analysis as economic growth assumptions are aligned with the International Monetary Fund’s January 2025 World Economic Outlook Update, ensuring consistency with broader macroeconomic trends relevant to strategic planning across sectors.

Record Clean Energy Deployment Is Reshaping Power Markets

Global renewable capacity additions surged by 25% in 2024 to around 700 GW – marking the 22nd consecutive year that renewables have broken expansion records.

Solar PV dominated with over three-quarters of renewable capacity additions, totalling about 550 GW and bringing global installed capacity to 2.2 terawatts. Wind additions remained stable at approximately 120 GW, while hydropower installations more than doubled to over 25 GW.

These clean energy deployment records are transforming electricity markets globally. For the first time, power generation from renewables and nuclear covered two-fifths of total global generation.

In the European Union, the share of electricity from solar PV and wind reached a record 28%, surpassing the combined share from coal and gas for the first time. In the United States, solar PV and wind generation rose to 16%, overtaking coal generation.

For market intelligence professionals, these structural shifts signal profound changes in power market dynamics. The expansion of variable renewable energy sources is creating new challenges and opportunities in grid management, electricity pricing, and market design. 

Organisations leveraging advanced market intelligence platforms to monitor these developments will gain competitive advantage in identifying emerging market opportunities and potential disruption.

Electricity Demand Growth Outpaces Total Energy Consumption

Electricity demand increased by 4.3% in 2024, significantly outpacing total energy demand growth of 2.2%.

This remarkable acceleration resulted in the largest annual increase in electricity consumption ever recorded outside of post-recession recovery periods – adding nearly 1,100 TWh, more than Japan’s total annual electricity consumption.

Multiple drivers are powering this surge in electricity demand. The buildings sector accounted for nearly 60% of growth, driven by increased cooling needs during record-breaking heatwaves and rapid expansion of data centres.

The industrial sector contributed nearly 40% of electricity demand growth, reflecting increased activity in electro-intensive manufacturing.

Meanwhile, transport electrification continued, with global electric car sales rising by over 25% to exceed 17 million units, representing one-fifth of all car sales.

For competitive intelligence analysts, this accelerating electrification trend has profound implications across sectors. The increasing electricity intensity of the global economy is creating new interdependencies between previously separate markets.

Organisations with sophisticated market intelligence capabilities can anticipate how shifting electricity demand patterns will affect investment flows, regulatory frameworks, and competitive dynamics across multiple industries.

Geopolitical Divergence in Energy Transition Trajectories

Energy market intelligence increasingly requires geopolitical analysis as regional transitions diverge significantly. In China, despite slowing energy demand growth to below 3% in 2024 (half the rate in 2023), the country still saw the largest absolute growth globally.

China surpassed its 2030 target of 1,200 GW of combined solar PV and wind capacity six years early, while its per-capita emissions are now 16% higher than advanced economies.

India saw energy demand rise by nearly 5% and electricity consumption grow by more than 5% in 2024. Despite record-breaking additions of nearly 35 GW in solar PV and wind capacity, fossil fuels remained dominant in its electricity generation mix as demand growth outpaced clean energy deployment.

Advanced economies experienced contrasting trends, with overall emissions decreasing by 1.1%. The European Union’s energy-related CO₂ emissions fell by 2.2%, with power sector emissions dropping by almost 10% year-on-year.

The United States saw total emissions decrease by 0.5%, despite natural gas emissions rising by 1.3%.

Market intelligence teams monitoring these divergent pathways can help organisations navigate complex cross-border investment and partnership opportunities.

The ability to predict how these varying transition speeds will affect global supply chains, technology transfer, and regulatory frameworks will be critical for strategic decision-making.

Key Statistics and Insights

• Global energy demand grew by 2.2% in 2024, with electricity demand surging by 4.3% – more than twice the annual average increase over the past decade
• Renewables accounted for the largest share of energy supply growth (38%), followed by natural gas (28%), coal (15%), oil (11%) and nuclear (8%)
• Five clean energy technologies – solar PV, wind, nuclear, electric vehicles, and heat pumps – now prevent around 2.6 Gt of emissions annually, equivalent to 7% of global energy-related CO₂ emissions
• Advanced economies’ emissions fell by 1.1% to 10.9 billion tonnes in 2024 – a level seen 50 years ago when their GDP was more than three times smaller
• Oil’s share of total energy demand fell below 30% for the first time ever, 50 years after peaking at 46%
• Solar PV capacity additions in 2024 rose by almost 30% year-over-year, totalling about 550 GW and bringing global installed capacity to 2.2 terawatts
• China accounted for nearly half of all nuclear capacity under construction worldwide, with 62 reactors being built in 15 countries globally

Technical Glossary

Energy Intensity – A measure of energy efficiency in an economy, calculated as units of energy per unit of GDP. Global energy intensity improvement slowed to 1% in 2024, down from an average of 2% annually between 2010 and 2019.

Thermosensitivity – The responsiveness of electricity demand to temperature changes. In 2024, thermosensitivity increased significantly in emerging economies like India as air conditioning adoption accelerated.

Cooling Degree Days (CDD) – A measurement designed to quantify the demand for energy needed to cool buildings. CDDs were 6% higher in 2024 than in 2023, and 20% higher than the 2000-2020 average.

Electrification – The process of replacing technologies that use fossil fuels with technologies that use electricity as a source of energy. Electricity consumption growth has remained broadly in line with GDP growth over the last decade.

Carbon Intensity of Energy Supply – The amount of carbon emitted per unit of energy produced. This metric improved by 1.1% in 2024, contributing to a 2.1% improvement in CO₂ intensity per unit of economic activity.

Extended-Range Electric Vehicles (EREVs) – A type of hybrid electric vehicle that combines a battery system with an internal combustion engine generator. Growing demand for EREVs has supported the trend toward plug-in hybrid electric vehicles in China.

Generation III+ Nuclear Designs – Advanced nuclear reactor designs featuring improved fuel technology, superior thermal efficiency, and enhanced safety systems. In 2024, Pakistan began construction of the first Generation III+ design of Chinese origin used outside China.

Zero-Emission Vehicle (ZEV) Mandate – Regulatory requirement for automakers to sell a certain percentage of zero-emission vehicles. The United Kingdom’s ZEV mandate drove a surge in electric vehicle sales in 2024, making it the leader in battery electric car sales among European countries.

Emissions Decoupling – The separation of economic growth from greenhouse gas emissions. Despite global GDP growing by 3.2% in 2024, emissions growth slowed to 0.8%, restoring the decades-long decoupling trend.

Power Mix Decarbonisation – The reduction of carbon intensity in electricity generation through deployment of low-emission technologies. In the European Union, renewables accounted for almost 50% of electricity supply in 2024, helping to reduce power sector emissions by almost 10%.

Key Questions & Answers

How is clean energy deployment affecting global emissions?

Despite record deployment of clean technologies preventing 2.6 Gt CO₂ annually, total emissions still rose by 0.8% in 2024 due to overall energy demand growth of 2.2%. Without these technologies, emissions growth would have been three times larger.

Which regions are driving energy demand growth?

Emerging and developing economies accounted for over 80% of global energy demand growth, with China seeing the largest absolute increase despite slowing growth rate. India’s growth alone exceeded the combined increase in all advanced economies.

What impact did extreme weather have on energy markets in 2024?

Record high temperatures contributed approximately 230 Mt of additional CO₂ emissions compared to 2023, accounting for about 80% of the total increase in energy-related emissions. Two-thirds of this increase came from China and India.

How is electricity demand changing compared to overall energy consumption?

Electricity demand grew at 4.3% in 2024, almost twice as fast as total energy demand (2.2%). Buildings accounted for nearly 60% of this growth, driven by cooling needs and data centres, while industry contributed nearly 40%.

Which clean energy technologies are making the most impact?

Solar PV deployment over the last six years is now avoiding around 1.4 Gt of annual emissions, equivalent to the combined annual emissions of France, Germany, Italy and the United Kingdom. Wind power avoids approximately 900 Mt CO₂ annually.

How is nuclear power deployment evolving globally?

Over 7 GW of nuclear capacity was brought online in 2024 (33% more than in 2023), with construction starts increasing by 50%. China now accounts for nearly half of all nuclear capacity under construction globally, with all new projects using either Chinese or Russian designs.

What is happening to coal consumption in advanced economies?

Coal demand in advanced economies has halved from its 2007 peak, with 2024 seeing another decline. In the United States, coal consumption fell by 4%, while the European Union saw a 10% reduction in total coal demand.