IEA sees rising demand for electricity worldwide

22.04.2026

Source: E & M powernews

Global energy consumption rose more slowly in 2025, while electricity demand and electrification increased. The new IEA report also shows the dominance of fossil fuels.

Growth in global energy consumption slowed in 2025, increasing by 1.3% year-on-year to 655 exajoules (EJ) compared to the trend in the previous decade. The main reasons for this slowdown were lower global economic growth, less extreme temperatures in some regions and the rapid spread of more efficient technologies. This is according to the latest edition of the Global Energy Review published by the International Energy Agency (IEA).

Global energy demand continued to rise in 2025 against a complex economic and geopolitical backdrop, with one trend unmistakable: the increasing electrification of economies, explained Fatih Birol, Executive Director of the IEA. "In today's rapidly changing landscape, countries that prioritize resilience and diversification are best positioned to manage volatility and provide secure and affordable energy in the years ahead."

Fossil energy sources continue to dominate

Despite the strong increase in renewable energies, oil, natural gas and coal still account for 80% of global energy consumption.

Growth was recorded for all energy sources in 2025 compared to the previous year. The strongest increase among fossil fuels in 2025 was recorded for natural gas with a rise of 1.0%. Oil increased by 0.6 percent and coal by 0.4 percent. Despite the reduction in its share of total energy consumption to 29.6%, oil still led the ranking of energy sources in 2025.

Nuclear energy and, above all, renewable energies grew more strongly than fossil fuels. An increase of 1.2% was calculated for nuclear energy and 4.6% for renewable energies compared to the previous year. Renewable energies accounted for a total of 15% of global primary energy consumption, while nuclear energy accounted for 5%.

Global electricity generation increased by 872 TWh, or 2.8%, to around 32,000 TWh in 2025. Photovoltaics alone contributed to this growth with around 600 TWh, or almost 70%. This was the largest increase ever achieved by an energy technology. All renewable energies combined accounted for over 10,800 TWh, or 33.6 percent of total electricity generation. This almost matched the 33.8% share of global electricity generation held by coal in 2025.

Strong impetus from electromobility

Sales of electrically powered vehicles increased by more than 20% in 2025 compared to the previous year to 21 million units. This means that a quarter of vehicles sold in 2025 had an electric drive. In China, the 50 percent share of electric vehicles sold in 2025 was exceeded for the first time. In the European Union, sales of electric vehicles rose by 30 percent in 2025. The largest EU car market, Germany, recorded significant growth in new registrations of electric vehicles. The same applies to countries such as Spain, Italy, Poland and the Netherlands. The entire continent of Europe was the fastest-growing market for electric vehicles in 2025 - ahead of China. Growth of more than 25 percent was recorded in the UK. In Norway, the share of battery electric vehicles reached 96% of total sales.

Sales of heat pumps fell by 2 percent worldwide in 2025. Sales in the USA declined. In China and Japan, sales remained largely stable, while Europe saw a strong recovery in demand. In Europe, sales of heat pumps rose by 11% year-on-year, the first increase since 2022. The recovery was largely driven by developments in Germany, where sales of heat pumps increased by 55% in the first half of 2025.

The IEA puts energy-related CO2 emissions for 2025 - including emissions from industrial processes - at 38.1 billion tons. This was 0.4 percent more than in 2024, although the increase has slowed. Nevertheless, global CO2 emissions reached a new high in 2025. China was the world's largest CO2 emitter in 2025 with a share of one third. The European Union accounted for 6.2 percent. Germany accounted for 1.5 percent of global CO2 emissions in 2025.

The 48-page document "Global Energy Review 2026" can be downloaded from the IEA website.

Author: Hans-Wilhelm Schiffer