Electricity and renewables are reshaping global energy demand in 2025, with solar leading growth despite record emissions and persistent fossil fuel use.
Electricity reshapes global energy demand growth in 2025
In 2025, electricity-driven global energy demand grows by 1.3%, but more importantly, the structure of the system is shifting. Electricity and renewables are driving growth, even as emissions reach a new record.
The Global Energy Review 2026 by the International Energy Agency outlines a system in transition. Energy consumption is rising more slowly than in the past, electrification is accelerating, clean technologies are expanding, and fossil fuels still play a central role.
Total demand reaches 655 exajoules (EJ), while electricity demand grows by around 800 TWh, about 3%, more than double the pace of total energy demand. Low-emission sources account for nearly 60% of demand growth, yet emissions climb to 38.4 billion tonnes of CO2.
This represents an increase of about 8 EJ compared to 2024. Global GDP grows by 3.1%, slightly below the 3.3% recorded in 2024, while energy intensity improves by around 2%, above the 1.3% average seen between 2019 and 2024.
Solar leads the expansion of global energy demand
In 2025, renewable energy reaches a historic milestone in covering global demand growth. Solar photovoltaic alone accounts for over 27% of the increase, becoming the largest single contributor for the first time.
It is followed by natural gas at 17% and oil at around 15%. Solid bioenergy and waste contribute 13%, while wind and coal each account for roughly 9%. Other renewables, including hydropower and geothermal, add about 3%, and liquid biofuels around 2%.
This confirms a structural shift. Renewables are now the main driver of energy expansion. Overall, low-emission sources, including wind, hydropower, and bioenergy, represent nearly 60% of total growth.
However, demand increases across all sources, showing that the transition is progressing without an immediate decline in fossil fuel consumption, a dynamic also visible in emerging African economies where energy access and growth still rely on mixed energy systems.
Electricity demand grows more than twice as fast
Electricity demand is expanding much faster than overall energy consumption. In 2025, it rises by around 3%, more than double total energy demand growth, confirming the entry into the “age of electricity”.
Buildings account for about 45% of the increase, followed by industry and services. New applications are also playing a growing role. Data centers see demand rise by 17%, while electric vehicles grow by 38%.
In the United States, data centers alone represent 50% of electricity demand growth. Globally, they contribute about 70 TWh to the increase, while transport accounts for over 10% of total growth, compared to an average of 4% between 2014 and 2024.
This signals a deep transformation. More sectors are shifting toward electricity, making power systems the core of the energy transition, a trend increasingly relevant for fast-growing urban systems across Sub-Saharan Africa.
Regional trends show diverging energy demand patterns
Global energy demand growth in 2025 varies significantly by region. China remains the largest contributor but slows to 1.7%, reflecting efficiency gains and renewable expansion.
The United States accelerates beyond 2%, driven by industrial demand, colder weather, and data center consumption. The European Union records a slight contraction of 0.1%, while India slows to around 1%.
Africa and the Middle East, by contrast, show stronger growth. This highlights a geographical redistribution of demand, with advanced economies rebounding and some emerging markets moderating.
Weather conditions directly impact energy demand
Climate factors have a direct impact on energy demand in 2025. A colder winter in advanced economies increases natural gas consumption, contributing over 16 billion cubic meters to global growth.
In India, an early monsoon reduces electricity demand and coal use. Meanwhile, drought conditions in Europe and Latin America limit hydropower generation, increasing reliance on fossil fuels.
Overall, weather effects contribute about 90 million tonnes of CO2 emissions, highlighting the growing vulnerability of energy systems to climate variability.
Cooling degree days globally are 6% lower than in 2024, while temperature variations account for about 16 bcm of the 40 bcm increase in global gas demand. Reduced hydropower output adds roughly 40 million tonnes of CO2 emissions.
Record growth for renewables and clean technologies
2025 marks an unprecedented expansion for clean technologies. Electric vehicle sales exceed 21 million units, meaning one in four cars sold globally is electric.
Energy storage also grows rapidly, with 108 GW of new capacity installed, up 40% from 2024, reaching a total capacity 11 times higher than in 2021.
Renewables set a new record with 800 GW of new installations, around 75% of which is solar, equal to 600 GW. Total installed solar capacity reaches approximately 2,800 GW.
Renewables cover all electricity demand growth
Electricity generation increases by more than 850 TWh in 2025, and the entire growth is met by low-emission sources.
Solar leads with a record increase of 600 TWh, while wind grows by 8%. Coal remains the largest source at 34% of generation but declines slightly. Natural gas increases only marginally.
Low-emission sources reach 43% of total electricity generation, the highest level in the past fifty years.
Global electricity generation rises from 31,260 TWh in 2024 to 32,132 TWh in 2025. Renewables grow from 9,947 to 10,808 TWh, up 8.7%, while coal slightly declines and gas shows minimal growth.
Fossil fuels remain structurally important
Despite the expansion of renewables, fossil fuels continue to play a key role.
Oil demand grows by 0.7%, confirming a structural slowdown, mainly due to transport electrification and improved vehicle efficiency. Natural gas rises by 1%, increasingly used for system flexibility, while coal grows by just 0.4%.
This indicates a plateau phase rather than a rapid decline.
Global emissions reach a new record
Energy-related emissions increase by 0.4% in 2025, reaching a record 38.4 billion tonnes of CO2.
The growth is slower than in previous years and remains below global GDP growth, signaling a gradual decoupling between economic activity and emissions.
Natural gas is the main contributor to the increase, while coal remains stable.
Clean technologies deployed since 2019 avoid around 35 exajoules of fossil energy demand in 2025, equal to 7% of the global total.
They also prevent approximately 3 billion tonnes of CO2 emissions, about 8% of global emissions. Solar accounts for 1.5 gigatonnes avoided, followed by wind at 1.1 gigatonnes.
Low-emission sources reach 43% of global electricity generation, while renewables alone account for 34%, up from 32% in 2024 and 23% a decade ago. Solar and wind combined now represent 17%, compared to just 5% ten years ago.
