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Global energy growth slows to 1.3% in 2025: Report
The report highlighted that although overall energy demand growth slowed compared with 2024 and remained slightly below the previous decade’s average, electricity demand rose by around 3 per cent, driven by increased usage across buildings, industry, electric vehicles, and data centres.
Global energy demand growth slowed to 1.3 per cent in 2025, while electricity demand rose around 3 per cent, driven by EVs, industry, and data centres, according to IEA.
Solar PV led supply growth for the first time.
Oil demand grew modestly, and coal growth slowed.
CO2 emissions rose slightly.
Renewables and nuclear expansion highlighted an accelerating shift towards cleaner energy systems.
Solar photovoltaic (PV) emerged as the largest contributor to global energy supply growth for the first time, accounting for over 25 per cent of the increase. Natural gas followed with a 17 per cent share, while renewables and nuclear together met nearly 60 per cent of additional demand.
Global oil demand rose modestly by 0.7 per cent, reflecting the continued expansion of electric vehicles, with sales surpassing 20 million units in 2025. Coal demand growth slowed overall, with declines in China offset by increases in the United States due to high natural gas prices.
“Global energy demand continued to increase in 2025 against a complex economic and geopolitical backdrop, with one trend unmistakeable: the expanding electrification of economies,” said Fatih Birol, IEA executive director.
He added that electricity consumption was growing much faster than overall energy demand, with one energy source outpacing all others. He noted that solar PV accounted for over a quarter of global energy demand growth for the first time, followed by natural gas, and added that countries prioritising resilience and diversification would be better placed to manage volatility and ensure secure, affordable energy.
Regional trends varied significantly. Energy demand growth in the United States rose sharply, supported by industrial activity, data centre expansion, and colder weather, while China’s growth slowed to 1.7 per cent due to rising renewable adoption and improved efficiency.
Global energy-related CO2 emissions increased marginally by around 0.4 per cent. Emissions declined in China and remained flat in India, aided by renewable deployment and favourable weather conditions, while advanced economies recorded higher emissions growth due to colder winter conditions.
In the power sector, solar PV generation surged by a record 600 terawatt-hours, marking the largest annual increase for any electricity generation technology. Battery storage emerged as the fastest-growing segment, with around 110 gigawatts of new capacity added, while nuclear energy also saw renewed momentum with over 12 gigawatts of new reactors under construction.
The IEA noted that cumulative deployment of low-emissions technologies since 2019 now offsets fossil fuel consumption equivalent to the entire energy demand of Latin America, underscoring the accelerating transition towards cleaner energy systems.
Fibre2Fashion News Desk (SG)