Global Energy Review 2025

The Global Energy Review 2025, released by the International Energy Agency, marks the impact of extreme weather on energy demand in 2024. The report reveals a surge in energy consumption driven by record-high temperatures. Energy demand increased by 20 per cent, particularly for natural gas and electricity. This growth also spurred a rise in coal use. The report provides a comprehensive overview of the energy sector’s evolution, covering all fuels, technologies, and related carbon dioxide emissions.

Overview of Energy Demand Growth

In 2024, global energy demand rose at an accelerated rate. Electricity demand grew nearly twice as fast as overall energy demand. This surge was largely attributed to increased cooling needs, industrial consumption, and the electrification of transport. The growth was also fuelled by expanding data centres and advancements in artificial intelligence.

Contribution of Renewable Energy

Renewable energy sources played important role in meeting the rising electricity demand. Solar photovoltaic (PV) capacity saw record-breaking expansions. In 2024, renewable sources and nuclear power accounted for 80 per cent of the growth in global electricity generation. Renewables alone supplied 32 per cent of total generation, marking milestone.

Sector-Specific Demand Analysis

The buildings sector experienced a remarkable increase in electricity demand, growing four times faster than in 2023. This growth was driven by rising demand for air conditioning amid severe heat waves. The industrial sector also contributed , with nearly 40 per cent of total electricity demand growth in 2024. Increased activity in electro-intensive manufacturing boosted electricity use in this sector.

The Role of Electric Vehicles

The transport sector saw a substantial rise in electricity consumption, increasing by over 8 per cent in 2024. Sales of electric vehicles surpassed 17 million units, reflecting a 25 per cent increase from the previous year. This trend is indicative of the broader shift towards electrification in transportation.

CO2 Emissions and Their Drivers

Despite the growth in clean energy technologies, CO2 emissions from the energy sector continued to rise, albeit at a slower rate than in 2023. Record-high temperatures were driver of this increase. Natural gas emissions rose by approximately 2.5 per cent, making it the largest contributor to global carbon emissions growth. Coal demand also saw a slight increase, primarily driven by consumption in China and India.

Future Implications

The findings tell the urgency of transitioning to cleaner energy sources. The continued adoption of solar PV, wind power, nuclear power, electric vehicles, and heat pumps is crucial. These technologies have the potential to mitigate emissions growth and contribute to a more sustainable energy future.

Month: Current Affairs - March, 2025

Category: Reports & Indexes Current Affairs