Global electricity demand is set to grow at its fastest pace in nearly 20 years in 2024, driven by increased air conditioning use due to rising temperatures, the International Energy Agency (IEA) reported today. This trend is expected to continue into 2025, sustaining coal power usage even as renewable energy production rises.
“Growth in global electricity demand this year and next is set to be among the fastest in the past two decades,” said Keisuke Sadamori, IEA Director of Energy Markets and Security. The report highlighted that severe heatwaves have increased the need for reliable but dirtier coal-based power.
Artificial intelligence (AI) is also contributing to rising electricity demand, especially from data centers, raising concerns about energy efficiency and deployment strategies. Global power consumption is forecast to grow by around 4% in 2024, the largest increase since 2007, with a similar pace expected in 2025, compared to a 2.5% rise in 2023.
India is projected to lead demand growth with an 8% increase in 2024, followed by China at 6%, slightly down from 2023 due to economic restructuring. The European Union is expected to grow by 1.7% after two years of contraction, and the US is forecasted to rebound by 3% after a decline in 2023 due to mild weather.
Renewable energy’s share of global supply is projected to reach 35% by 2025, surpassing hydropower’s share. Total renewable generation is expected to overtake coal-fired electricity output in 2025. However, coal is expected to remain resilient in 2024, adding less than 1%, contingent on hydropower output, particularly in China.
Consequently, carbon emissions from the global power sector are expected to plateau, with slight growth this year before declining in 2025, according to the IEA.
