Post: Global energy demand falling but power demand continues to rise, says IEA

Global energy demand falling but power demand continues to rise, says IEA

Global energy demand increased more slowly last year against a complex economic and geopolitical backdrop, but electricity use continued to rise strongly, the IEA has said.

In its Global Energy Review report, published on 20 April, the IEA noted that global energy demand growth slowed to 1.3% in 2025, just below the average for the previous decade. This was attributed to slower economic growth and slower growth in energy-intensive industries, lower cooling demand, and faster efficiency improvements. But demand for electricity grew at well over twice the rate of overall energy demand; nearly 3%. Electricity demand growth was again driven by a wide range of end uses in buildings and industry. Although only contributing a small share of this total growth, demand from electric vehicles and data centres grew rapidly. In the United States, data centres made up half of all growth in electricity use.

Total low-emissions sources combined (solar, wind, nuclear, hydropower and other renewables) contributed near 60% of the growth in global demand. Annual global renewable capacity additions rose to a record 800GW, of which solar contributed 75%. Battery storage was the fastest growing power technology: capacity additions rose by around 40% in 2025 to reach almost 110GW. The increase in generation from low-emissions sources in 2025 exceeded the total growth in electricity supply. The rise in solar PV alone met around 70% of electricity generation growth. Renewables combined now virtually match total global generation from coal. In the European Union, the share of solar PV and wind reached 30% in 2025, surpassing that of fossil fuels for the first time.

Demand for oil, natural gas and coal all grew in 2025, but at a slower rate than in 2024. Gas demand growth slowed in 2025, rising by around 1%, down from the 2.8% recorded in 2024, amid relatively high prices in the first half of the year.