Renewable energy + industrial sustainability
Diverse energy sources meet growing global demand
According to the latest edition of the International Energy Agency’s (IEA’s) Global Energy Review , worldwide energy demand grew at a slower pace in 2025 than in the previous year, but electricity consumption continued to rise much faster than overall demand – with solar PV becoming the largest contributor to growth in global energy supply for the first time.
against a complex economic and geopolitical backdrop, with one trend unmistakeable: the expanding electrification of economies. Electricity consumption is growing faster than overall energy demand – and solar PV is growing faster than any other energy source. It ac- counted for over a quarter of the world’s energy demand growth – more than any other source, for the first time. Natural gas followed. In today’s rapidly shi£ing landscape, countries that prioritise resilience and diversification will be best placed to manage volatility and deliver secure and aordable energy in the years ahead.” Beneath the global totals, trends diverged sharply across major economies. Energy demand growth in the United States rose to its second-highest level this century – excluding post-recession recov- ery years – boosted by strong electricity demand from data centres, robust industrial activity and colder winter temperatures. China ac- counted for the largest overall share of global energy demand growth last year, but its growth rate dropped sharply to 1.7% as renewables displaced coal, which is less eicient, and broader energy eiciency gains strengthened. At the same time, growth in global energy-related CO 2 emissions slowed in 2025, rising by around 0.4%. According to the report, Chi- na’s emissions declined in 2025, supported by a surge in renewables and other low-emissions technologies. India’s energy-related CO 2 emissions were flat for the first time since the 1970s – excluding the Covid-19 pandemic – with the eects of an unusually strong monsoon season playing a significant role in curbing emissions growth. By con- trast, in advanced economies, an especially cold winter pushed fossil fuel use and emissions higher. Taken together, these developments meant that emissions from advanced economies grew faster (+0.5%) than those from emerging and developing economies (+0.3%) for the first time since the 1990s. In the electricity sector, the additional 600 terawatt-hours of so- lar PV generation worldwide in 2025 marked the largest structural increase ever recorded in a single year for any electricity generation technology, contributing to a decline in coal-fired electricity genera- tion globally. Battery storage was the fastest-growing power sector technology in 2025. The roughly 110 gigawatts of new battery storage capacity added during the year exceeded the largest annual capacity additions to date for natural gas. In nuclear power, construction be- gan on over 12 gigawatts of new nuclear reactors in 2025, a reflection of renewed momentum for nuclear projects in several regions. The IEA reports that cumulative deployment of low-emissions technologies since 2019 now means the avoidance of annual fossil fuel consumption equivalent to the entire energy demand of Latin America. Use of technologies such as solar PV, wind power and heat pumps now displaces natural gas demand equivalent to half of all global annual LNG exports. The report and an accompanying dataset can be downloaded from the IEA website.
T he report provides a comprehensive global assessment of trends across the energy sector in 2025. Based on the latest data, it covers energy demand, electricity generation and use, energy technology deployment and energy-related car- bon dioxide emissions. Global energy demand growth slowed to 1.3% in 2025, slight- ly below the previous decade’s average of 1.4% and significant- ly lower than in 2024 amid lower global economic growth, less extreme temperatures in some regions and the rapid uptake of more eicient technologies. At the same time, global electricity demand increased by around 3% – slower than in 2024, but still above the average of the past decade. Electricity demand growth was driven by multiple sectors across buildings and industry – and boosted by fast-growing de- mand from electric vehicles and data centres. In terms of energy generation, all major fuels and technolo- gies expanded in 2025 to meet rising demand, although at very dierent rates. Solar PV was the single largest contributor to growth in global energy supply, accounting for more than 25% of the increase – the first time on record that a modern renewable source has led growth in global primary energy supply. Natural gas took the next largest share, at 17%, reflecting its critical role in power generation in many countries. Overall, renewable sources and nuclear met nearly 60% of all growth in energy demand – and power generation from these sources exceeded total growth in electricity demand. Global oil demand rose by 0.7%, in line with IEA projections. This reflects continued growth of electric vehicles, which con- strained demand for road fuels. Electric car sales in 2025 in- creased by over 20% to more than 20 million units – making up around one in four new car sales worldwide. Strong renewables growth reduced coal use in power generation in China, although coal demand increased in the United States as high natural gas prices drove gas-to-coal switching in electricity generation. Over- all, the rate of coal demand growth slowed in 2025. Commenting on the report, IEA Executive Director Fatih Birol said: “Global energy demand continued to increase in 2025
The world’s energy demand increased more slowly last year against a complex economic and geopolitical backdrop, but electricity use continued to rise strongly.
For more information visit: www.iea.org
10 Electricity + Control JUNE 2026
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