International Energy Agency Report: Global Energy Demand Slows to 1.3% In 2025 As Electricity Use Surges 3% Amid Economic And Geopolitical Uncertainty

The latest analysis from the International Energy Agency (IEA) shows that the world’s overall energy demand grew more slowly in 2025, even as electricity use continued to rise at a much faster pace. This shift took place against a backdrop of economic uncertainty and geopolitical tension, but the global push toward electrification remained strong.

Global energy demand increased by 1.3% in 2025. This is slightly below the average growth rate of the past decade and noticeably lower than the increase seen in 2024. Several factors contributed to this slowdown, including weaker global economic performance, milder weather in some regions that reduced heating and cooling needs, and the adoption of more efficient technologies across industries and households.

In contrast, electricity demand rose by around 3%, growing more than twice as fast as total energy demand. Although this was slower than the growth seen in 2024—partly due to lower cooling requirements in India and Southeast Asia during less severe heatwaves—it was still stronger than the average of the last ten years.

Electricity use increased across many sectors, especially in buildings and industries, and was further boosted by the rapid expansion of electric vehicles and data centres. Energy supply sources expanded at different rates. Solar photovoltaic energy made history by becoming the largest contributor to global energy supply growth in 2025, accounting for more than a quarter of the total increase.

This is the first time a modern renewable energy source has led global primary energy supply growth. Natural gas was the second-largest contributor, responsible for about 17% of the increase. Overall, renewables and nuclear energy together supplied nearly 60% of the year’s growth in demand, and their combined output surpassed the total global increase in electricity consumption. Oil demand increased by 0.7%, which aligned with IEA projections. This modest rise came despite the continued growth of electric vehicles, which helped limit the demand for road fuels.

Electric car sales rose by more than 20%, reaching over 20 million units in 2025 and representing roughly one-quarter of all new car purchases worldwide. Coal demand showed mixed results: it fell in China due to strong renewable energy growth but rose in the United States as high natural gas prices pushed electricity producers toward coal.

Overall, global coal demand grew more slowly than in previous years. The IEA report also highlights differing energy trends across major economies. The United States saw one of its highest increases in energy demand this century—outside of post-recession recoveries—driven by strong electricity consumption from data centres, robust industrial activity, and colder winter temperatures.

China remained the largest contributor to global energy demand growth, but its growth rate slowed significantly to 1.7%, largely because renewables replaced coal and energy efficiency improved across sectors. Global energy-related carbon dioxide emissions rose by about 0.4% in 2025, marking a slowdown compared to previous years.

China’s emissions fell due to its rapid expansion of renewables and other low-emission technologies. India’s emissions remained almost unchanged for the first time since the 1970s (excluding the pandemic years), with a particularly strong monsoon season helping reduce energy use. In contrast, advanced economies saw a 0.5% rise in emissions due to a colder winter, while emerging and developing economies experienced a smaller increase of 0.3%.

The electricity sector experienced some landmark changes. Solar PV generation increased by 600 terawatt-hours, the largest structural annual rise ever recorded for any single power generation technology. Battery storage grew faster than any other power sector technology, with about 110 gigawatts added, exceeding even the highest historical annual additions for natural gas. Nuclear power also regained momentum, with over 12 gigawatts of new reactor construction beginning in 2025.

Since 2019, the deployment of low-emission technologies—including solar, wind, and heat pumps—has significantly reduced fossil fuel consumption. These technologies now avoid an amount of fossil fuel use equivalent to the entire annual energy demand of Latin America. They also reduce natural gas consumption by an amount equal to roughly half of all global LNG exports.

The IEA has also released a detailed dataset alongside the report, making the underlying information available for free download. Overall, the findings show a world steadily moving toward greater electrification, growing reliance on clean energy sources, and increasingly efficient use of energy—despite the challenges presented by the global economic and geopolitical environment.