Global electricity demand hits new high as renewables and fossil fuels both see growth

The Energy Institute (EI), in collaboration with Kearney and KPMG, released the 74th edition of the Statistical Review of World Energy, providing a comprehensive overview of global energy data for 2024. In a year where global temperatures exceeded the 1.5°C warming threshold, CO₂-equivalent emissions from energy increased by 1%, setting a new record for the fourth consecutive year. Wind and solar energy expanded by 16% in 2024, significantly outpacing total energy demand growth. However, this growth was insufficient to offset the rising demand for fossil fuels, which increased by just over 1%, indicating a transition characterized by both progress and disorder. Crude oil demand in OECD countries remained steady, while non-OECD countries experienced a 1% increase in oil consumption, with a significant portion of global energy demand growth concentrated in these regions where fossil fuels remain dominant. Chinese crude oil demand declined by 1.7% in 2024, suggesting a potential peak reached in 2023. Global natural gas demand rebounded by 2.5% as gas markets recovered from a slump in 2023. India's coal demand rose by 4% in 2024, now matching the combined demand of CIS, Southern and Central America, North America, and Europe. These trends highlight the reality that while renewable energy is growing rapidly, global energy demand is increasing at a faster rate. Instead of replacing fossil fuels, renewables are supplementing the overall energy mix, indicating the challenges in achieving a coordinated global energy transition due to structural, economic, and geopolitical barriers.

According to the source: KPMG.