The world’s energy appetite hit a new peak in 2024, with demand rising 2% to a record 592 exajoules, according to the Energy Institute’s annual Statistical Review. The data, released today in collaboration with Kearney and KPMG, paints a complex picture of a global energy system in transition, but not yet ready to leave fossil fuels behind.
Renewables, particularly wind and solar, surged ahead, with solar capacity nearly doubling in just two years. China, the world’s largest emitter, led the charge, accounting for more than half of new solar and wind additions. Yet, despite this rapid growth, fossil fuels refused to yield, with oil, gas, and coal all posting gains. Global emissions rose 1%, marking the fourth consecutive year of record highs.
The data underscores a stark reality: renewable power is scaling fast, but global energy demand is growing even faster. Electricity demand, a key indicator of electrification, grew twice as fast as overall energy demand, climbing 4%. This suggests that while the world is making progress in shifting to cleaner energy, the pace of renewable deployment is not keeping up with the growing demand for electricity.
In the OECD, oil use remained flat, but in non-OECD nations, where demand is booming, oil rose 1%. China’s oil demand fell 1.7%, possibly peaking in 2023, but India’s coal use soared 4%, now matching the combined demand of the US, Europe, CIS, and Latin America. Gas also bounced back, up 2.5% after a slump in 2023.
Andy Brown, President of the Energy Institute, put it plainly: “This year’s data reflects a complex picture of the global energy transition. Electrification is accelerating, particularly across developing economies where access to modern energy is expanding rapidly. However, the pace of renewable deployment continues to be outstripped by overall demand growth, 60% of which was met by fossil fuels.”
The data raises critical questions about the trajectory of the global energy transition. How can renewable deployment be accelerated to meet growing demand? What role should fossil fuels play in the interim? And how can the world balance the need for energy access with the urgency of climate action? The answers to these questions will shape the development of the energy sector in the years to come.