Global energy demand expanded at a slower pace in 2025 amid a complex economic and geopolitical environment, according to the latest Global Energy Review released by the International Energy Agency. Despite the moderation in overall demand, electricity consumption continued to grow strongly, underpinned by accelerating electrification across multiple sectors.
The report shows global energy demand increased by 1.3% in 2025, slightly below the previous decade average of 1.4% and significantly lower than the growth recorded in 2024. This deceleration was driven by weaker economic expansion, milder weather conditions in key regions and the rapid deployment of energy efficient technologies.
In contrast, global electricity demand rose by around 3%, more than double the rate of overall energy demand growth. Although lower than the surge seen in 2024, electricity consumption remained above the long term average. Growth was supported by rising demand in buildings and industry, alongside continued expansion in electric vehicles and data centres.
Solar photovoltaic emerged as the leading contributor to global energy supply growth in 2025, accounting for more than 25% of the increase. This marks the first time a modern renewable energy source has taken the top position. Natural gas followed with a 17% share, reflecting its continued importance in power generation. Overall, renewables and nuclear energy together met nearly 60% of the increase in global energy demand, with their combined electricity generation exceeding total demand growth.
Oil demand rose by 0.7%, in line with projections, as the rapid uptake of electric vehicles continued to limit growth in road fuel consumption. Electric car sales increased by more than 20% to exceed 20 million units, representing around 25% of all new vehicle sales globally. Meanwhile, coal demand growth slowed overall, with declines in China’s power sector offset by increased coal use in the United States due to higher natural gas prices.
Executive Director Fatih Birol highlighted the growing importance of electrification, noting that electricity demand is expanding significantly faster than total energy use. He emphasised that countries prioritising energy system resilience and diversification will be better positioned to manage volatility and ensure secure and affordable supply.
Regional trends revealed notable divergence. Energy demand growth in the United States reached one of its highest levels this century, supported by strong electricity demand from data centres, industrial activity and colder winter conditions. China remained the largest contributor to global demand growth, although its growth rate slowed to 1.7% as renewables displaced less efficient coal and energy efficiency improved.
Growth in global energy related CO2 emissions moderated to around 0.4% in 2025. China recorded a decline in emissions due to rapid expansion of renewables and low emission technologies, while India’s emissions remained flat for the first time since the 1970s excluding the pandemic period, partly due to an unusually strong monsoon season. In advanced economies, however, colder weather drove higher fossil fuel use, resulting in emissions growth of 0.5%, outpacing the 0.3% increase in emerging and developing economies.
In the power sector, solar PV generation increased by an additional 600 terawatt hours in 2025, marking the largest annual expansion ever recorded for any electricity generation technology. This contributed to a decline in global coal fired generation. Battery storage emerged as the fastest growing technology in the sector, with approximately 110 gigawatts of new capacity added, surpassing record annual additions for natural gas. At the same time, more than 12 gigawatts of new nuclear capacity began construction, signalling renewed interest in nuclear energy.
The cumulative deployment of low emission technologies since 2019 is now avoiding fossil fuel consumption equivalent to the entire energy demand of Latin America annually. Technologies such as solar PV, wind and heat pumps are collectively displacing natural gas demand equivalent to roughly 50% of global annual LNG exports, underscoring the accelerating shift in the global energy mix.
Link to the full report HERE
Author: Bryan Groenendaal






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