Where Did Energy Come From and Where Did It Go in 2024?

World energy systems underwent a profound transformation in 2024 at the intersection of the challenges posed by the climate crisis, revolutionary technological advances, and regional policy shifts. The International Energy Agency’s (IEA) Global Energy Review 2025 report outlines the key contours of this transformation. The report presents striking data across a wide range of areas including energy demand clean energy investment the changing role of fossil fuels and fluctuations in emissions.

Electricity Has Become the New Star of Energy

In 2024 global energy demand rose by 2.2 percent exceeding the average of the past decade. However the most striking development was the 4.3 percent growth in electricity demand which more than doubled the overall increase in energy demand. This surge was driven by multiple factors: record-high temperatures increased cooling needs while greater adoption of electricity in industry and the rapid electrification of transport pushed demand upward. Additionally the energy requirements of artificial intelligence and data centers played a significant role in this rise.

This increase in demand was particularly concentrated in developing countries. China recorded the largest absolute increase in demand while India surpassed all developed nations in expanding its weight on the global energy stage. In developed economies energy demand which had been in decline for years reversed course with a modest increase of about 1 percent.

Clean Energy Investments Broke Records

This rapid growth in electricity demand was largely met by low-emission sources. Renewable energy accounted for 38 percent of total supply growth and claimed the largest share. Natural gas coal and oil followed with nuclear energy increasing its share to 8 percent.

2024 was a record-breaking year for renewable energy. For the 22nd consecutive year a new installation record was set with a total of 700 GW of renewable capacity brought online during the year. Eighty percent of this capacity came from solar power. Together renewables and nuclear energy supplied 40 percent of global electricity generation surpassing a historic threshold.

Nuclear energy also reached its fifth-highest level in the past 30 years with new installations exceeding 7 GW. In new plant construction Chinese and Russian designs came to the forefront.

Changes in energy demand 2023–2024 (International Energy Agency)

Natural Gas Gains Strength Among Fossil Fuels Oil Loses Ground

Although fossil fuels still hold a significant position in the energy system their balance is shifting. In 2024 the most notable increase occurred in natural gas demand which rose by 2.7 percent driven especially by higher usage in industry and electricity generation. China led this trend with an increase exceeding 7 percent.

Coal demand also rose slightly reaching a new record level. This increase was largely due to extreme heat conditions in China and India which boosted electricity consumption. China alone accounted for 58 percent of global coal consumption.

In contrast oil showed a different pattern. Demand growth slowed to 0.8 percent falling to nearly half of the previous year’s 2023 level. Key reasons included the fading impact of post-pandemic mobility recovery slower industrial production and the growing adoption of electric vehicles. For the first time in nearly 50 years oil’s share of total energy demand fell below 30 percent.

Emissions Broke Records but Are Slowing

Despite all these developments energy-related carbon emissions rose by 0.8 percent in 2024 reaching a new high of 37.8 billion tons. However this increase was notably less severe than in previous years as the rapid deployment of clean technologies began to curb its pace. Solar and wind power nuclear plants electric vehicles and heat pumps prevented approximately 2.6 billion tons of CO₂ emissions annually over the past five years equivalent to 7 percent of global emissions.

Regional disparities in emissions also became more pronounced. Emissions declined by an average of 1.1 percent in developed countries while increases were primarily driven by developing nations outside China. This trend signals that issues of inequality and development will increasingly take center stage in global climate policy.

Electric Vehicles Rose Heat Pumps Declined

Transport electrification was one of the fastest-changing areas in energy in 2024. Sales of electric vehicles increased by over 25 percent compared to the previous year surpassing 17 million units. This figure represents one-fifth of global automobile sales. China maintained its leadership accounting for two-thirds of total sales while sales in the United States grew by over 10 percent. In Europe sales declined by 6 percent particularly in Germany due to the end of government incentives.

Heat pumps were among the losers of the year. Global sales fell by 1 percent with Europe experiencing a record drop of 21 percent. In Germany sales plunged by 50 percent. In contrast heat pump sales in the United States rose by approximately 15 percent showing a strong performance.

Searching for a New Balance in Energy

Against this backdrop 2024 emerged as a year of searching for a new equilibrium in energy systems. Electricity is becoming central renewables shattered historic records and fossil fuels lost ground yet remained powerful. Emissions continued to rise but began to slow and the impact of clean technologies became more visible. However sectors such as heating systems still struggle with political and economic uncertainty.

Accelerating the energy transition requires more than technology alone: political will economic incentives and infrastructure investment are equally vital. The years 2025 and beyond will determine how successfully this new balance is achieved.