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Global energy demand growth slowed in 2025, reflecting a complex economic and geopolitical environment. According to the latest global assessment, overall energy demand increased by 1.3 percent during the year, slightly below the previous decade’s average and significantly lower than the growth recorded in 2024.
The moderation was attributed to weaker global economic expansion, milder weather conditions in several regions, and the rapid adoption of energy-efficient technologies.
In contrast to the slower rise in total energy demand, global electricity consumption grew at a much faster pace of around 3 percent. This growth was more than double the rate of overall energy demand expansion.

Electricity demand continued to be driven by a broad set of sectors, including buildings and industry. Additional demand came from the rapid expansion of electric vehicles and data centres, reinforcing the ongoing trend of global electrification.
Solar photovoltaic (PV) technology emerged as the largest contributor to global energy supply growth in 2025. It accounted for over 25 percent of the total increase, marking the first time a modern renewable energy source has led global primary energy supply growth.
Natural gas followed as the second-largest contributor, accounting for 17 percent of the growth. Overall, renewables and nuclear energy together met nearly 60 percent of the increase in global energy demand.

Global oil demand rose modestly by 0.7 percent, supported by continued economic activity but constrained by the rapid growth of electric vehicles. Electric car sales crossed 20 million units in 2025, accounting for roughly one in four new vehicle sales globally.
Coal demand showed mixed trends. While its use declined in China due to increasing renewable deployment, it rose in the United States as high natural gas prices led to fuel switching in power generation. Overall, coal demand growth slowed during the year.
Energy demand patterns varied significantly across major economies. The United States recorded one of its highest growth rates this century, driven by increased electricity demand from data centres, industrial activity, and colder winter conditions.
China remained the largest contributor to global energy demand growth in absolute terms. However, its growth rate slowed to 1.7 percent, supported by efficiency gains and increased penetration of renewable energy.
Global energy-related carbon dioxide emissions increased by around 0.4 percent in 2025, marking a slowdown in emissions growth.
China recorded a decline in emissions due to strong renewable energy deployment, while India’s emissions remained flat for the first time since the 1970s, excluding the pandemic period. This was partly influenced by an unusually strong monsoon season.
In contrast, emissions in advanced economies rose by 0.5 percent, driven by higher fossil fuel consumption during colder weather conditions.
The electricity sector witnessed significant technological expansion. Solar PV generation increased by an additional 600 terawatt-hours in 2025, marking the largest annual increase ever recorded for any electricity generation technology.
Battery storage emerged as the fastest-growing technology in the power sector, with approximately 110 gigawatts of new capacity added during the year. This addition exceeded the highest annual capacity expansion ever recorded for natural gas.
At the same time, over 12 gigawatts of new nuclear capacity began construction, indicating renewed global interest in nuclear power.
The cumulative deployment of low-emission technologies since 2019 has significantly reduced fossil fuel consumption, the report notes. These technologies now avoid annual fossil fuel use equivalent to the entire energy demand of Latin America.
In addition, technologies such as solar, wind, and heat pumps are collectively displacing natural gas demand equivalent to nearly half of global LNG exports.
We are India’s leading B2B media house, reporting full-time on solar energy, wind, battery storage, solar inverters, and electric vehicle (EV)
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