IEA: Global electricity demand rose by three percent last year

Global electricity consumption increased by three percent last year. This was partly driven by rapidly growing demand from the electric vehicle and data center sectors. Electricity demand grew roughly 2.3 times faster than overall energy demand. The International Energy Agency (IEA) said this in its report published today.

Total energy demand rose by 1.3 percent last year. Growth slowed significantly compared with 2024 and was slightly below the average for the previous decade.

Electricity demand from the electric vehicle sector increased by 38 percent, while demand from data centers rose by 17 percent. Industry, household appliances and commercial buildings remained the main drivers of growth.

"In advanced economies, electricity demand grew by a robust 1.6 percent, with particularly strong growth recorded in the United States," the report says.

Data centers accounted for around 50 percent of total demand growth in the United States. Further growth came from the residential, industrial and transport sectors. Electricity demand growth was high in China, but greater efficiency and slightly lower demand for cooling kept it below 2024 levels.

Solar photovoltaics were the largest single source of growth in global energy supply last year, accounting for more than a quarter of the total increase. For the first time, a modern renewable source led growth in the world’s primary energy supply. Natural gas had the second-largest share, at 17 percent. Overall, renewables and nuclear energy met almost 60 percent of energy demand growth, while electricity generation from these sources exceeded total electricity demand growth.

Global oil demand rose by 0.7 percent. This reflects the continued growth in electric vehicle sales, which reduced demand for transport fuels.

Coal consumption in China fell as cleaner energy sources were deployed. However, coal demand increased in the United States, where high natural gas prices prompted a shift from gas to coal for power generation. Overall growth in coal demand slowed last year.

Battery energy storage technology was the fastest-growing technology in the energy sector last year. Around 110 gigawatts of new capacity was added in total. Construction began on nuclear reactors with a capacity of more than 12 gigawatts last year.