Electricity – Global Energy Review 2025 – Analysis - IEA (2025)

China accounted for the largest share of electricity consumption growth, but increases were seen globally

Almost all regions saw an acceleration in the rate of electricity consumption growth in 2024 compared with the annual average from 2012 to 2022. Globally, electricity consumption increased by 1 080 TWh, nearly two times the annual average of the past decade.

In China, electricity consumption increased by more than 550 TWh (7%), almost as much as the average annual global increase in electricity consumption over the previous decade (2013-2023) and well above the China’s own average increases during this period.

In 2023, advanced economies saw a 140 TWh decline in electricity consumption due to soft industrial output in some countries and milder weather conditions. In 2024, this reversed dramatically, with electricity consumption increasing by 230TWh, led by growth in the United States. Strong demand for cooling, growth in the data centre sector and a pickup in industrial production were important factors behind this trend. The European Union’s electricity consumption grew by about 1.5% in 2024, compared with near-zero growth on average from 2003 to 2023. Other advanced economies, including Australia and Korea, also saw upticks in the pace of electricity demand growth.

In India, the pace of electricity consumption growth slowed in 2024 compared with 2023, representing a normalisation after extremely unfavourable weather drove up demand in 2023. In Southeast Asia, on the other hand, consumption jumped by over 7% in 2024, compared with about 4% in 2023.

The buildings sector drove higher electricity demand in 2024, growing four times faster than in 2023

Global electricity consumption in buildings increased by more than 600 TWh (5%) in 2024, accounting for nearly 60% of total growth in electricity consumption. Key drivers included rising demand for air conditioning, which was bolstered by severe heatwaves in countries such as China and India, and demand for power from new data centres.

Electric car sales continued to rise globally in 2024, increasing by more than 25% to more than 17 million units, up from below 14 million units in 2023. This aligns with the IEA’s preliminary estimate for annual sales in the 2024 edition of the Global EV Outlook publication. EV sales accounted for over 20% of all car sales in 2024.

China was the leading driver of growth, accounting for almost two-thirds of global electric car sales in 2024. The country’s electric vehicle sales experienced an impressive annual growth rate of nearly 40%. A large share of this growth came from plug-in hybrid electric vehicles (PHEVs), where sales saw an 80% increase, compared with a nearly 20% rise in battery electric vehicles (BEVs). Growing demand for extended-range electric vehicles (EREVs) has supported this trend; the configuration is currently most prevalent in China. The country's market has been further supported by its vehicle trade-in scheme, which includes subsidies of up to nearly USD 3 000 to encourage consumers to replace older, less efficient cars with new energy vehicles.

The United States experienced sales growth of over 10%, largely driven by the release of new electric vehicle models and availability of EV tax credits, which provided financial aid to consumers.

Electric car sales in the European Union fell by 6%, in large part due to decreased sales in Germany, where purchase subsidies were removed at the end of 2023. In contrast, EV sales in the United Kingdom surged, driven by the Zero-Emission Vehicle (ZEV) mandate. As a result, in 2024 the United Kingdom emerged as the leader in battery electric car sales among European countries, surpassing Germany for the first time.

Emerging market and developing economies outside China witnessed a significant 80% annual increase in EV sales, although this growth came from a relatively lower base compared with more mature markets. Markets such as Brazil and Indonesia saw sales increase by 140% and 190%, respectively.

In China, annual capacity additions in 2024 remained at similar levels to 2023, with sales in some heat pump segments slowing down towards the end of the year. China remains the largest heat pump market globally, and it holds the largest share of manufacturing capacity for heat pump units and certain key components such as compressors.

In the United States, the second-largest heat pump market, sales rose by around 15% in 2024 on the previous year. This was driven by a 30% increase in the second half of the year compared with the same period in 2023, which compensated for the slight decline in sales in the first half. Throughout the year, heat pumps continued to gain market share over heating systems powered by fossil fuels. In 2024, heat pumps outsold natural gas furnaces by 30%, the largest gap ever recorded.

In Europe, the third-largest heat pump market, sales fell by a record 21%2, seeing the largest decline ever recorded in the region both in relative and absolute terms. This drop was largely driven by Germany, where sales fell by almost 50%, and by France, where they declined by 25%. Several factors contributed to this trend, including high prices for electricity compared with natural gas (which in 2024 was well below its 2022 peak) and an uncertain political and regulatory landscape. A slowdown in the construction sector also had an impact on heat pump installations, since a large share are in new buildings.

In Japan, the fourth-largest heat pump market, sales increased by over 5%, recovering after a weak start to the year. Sales of both air-to-water systems (which are mainly used for domestic hot water in Japan) and air-to-air systems (which are typically used for space heating) increased on an annual basis.

Clean energy accounted for over 80% of total growth in electricity generation in 2024

Global electricity generation grew by over 1 200 TWh in 2024. Mirroring the rise in electricity demand, this annual increase of 4% represents a significant acceleration from the average growth rate of 2.6% seen between 2010 and 2023. Rising generation from renewables and nuclear power made up over 80% of global growth – a step up from 2023, when they accounted for two-thirds of total growth.

Electricity generation from fossil fuels increased by just over 1% in 2024, making up less than one-fifth of global growth in electricity generation. Natural gas generation increased by about 2.5% year-on-year, significantly more than in 2023, with reductions in natural gas prices in most major markets and hot weather in some regions delivering a boost. Output from coal-fired power plants increased by less than 1% in 2024, half the rate of growth seen the year before.

Fossil fuels made up nearly 60% of 2024 electricity generation, but the power mix is evolving

Coal remained the largest source of electricity generation in the world, a position it has held for more than 50 years. In 2024, it accounted for 35% of total power generation. Natural gas was the second-largest source of electricity, marking more than two decades in which it has provided over 20% of global electricity. Oil-fired power plants generated just a few percent of the total.

However, the global power mix is evolving. For the first time ever, power generation from renewables and nuclear covered two-fifths of total global generation in 2024. Renewables collectively accounted for one-third of electricity generation, led by hydropower (14% of total electricity generation), wind (8%), solar PV (7%) and bioenergy and waste (3%). Nuclear power covered 9% of global electricity generation.

In emerging market and developing economies, coal is often the primary source of electricity. In China, the largest electricity system in the world, coal provided almost 60% of generation, followed by about 35% from renewables, with smaller roles for nuclear and natural gas. In India, coal provided nearly three-quarters of electricity supply, complemented by over 20% from renewables, with smaller contributions from nuclear power and natural gas. Southeast Asia got almost half of its electricity from coal and about one-quarter each from natural gas and renewables.

In advanced economies, renewables and natural gas play larger roles in electricity generation. In the United States, natural gas accounted for over 40% of all electricity generation in 2024, followed by renewables (23%), nuclear (18%) and coal (16%). In the European Union, renewables made up nearly half of electricity supply, well above the world average. The region also continued to rely on nuclear (23% of the total), with lower shares for natural gas (16%) and coal (11%).

In 2024, global annual renewable capacity additions surged by an estimated 25% to around 700 GW – marking the 22nd consecutive year that renewables have set new records for expansion. Solar PV accounted over three-quarters of renewable capacity additions, followed by wind (17%) and hydropower (4%), with bioenergy, geothermal, concentrating solar power and marine making up the remainder.

Solar PV additions in 2024 rose by almost 30% year-over-year, totalling about 550GW. With this growth, installed solar PV capacity worldwide reached an estimated 2.2terawatts (TW). Annual wind additions remained stable at around 120 GW. Together, solar PV and wind accounted for 95% of overall renewable capacity growth in 2024. Hydropower installations more than doubled to over 25GW thanks to large projects commissioned in China, Africa and Southeast Asia.

China continues to drive renewable capacity additions

China once again saw record expansion, making up almost two-thirds of all renewable capacity connected to the grid in 2024. Solar PV capacity additions (DC, direct current) reached over 340 GW, a 30% increase compared with 2023. Utility-scale plants drove over 60% of China’s PV expansion, followed by distributed commercial and industrial installations. Incentives targeting rural economic development have significantly boosted the installation of residential solar systems in China since 2019, with these systems accounting for approximately one-fifth of the country’s annual PV additions on average. However, last year, China's residential PV market (30 GW) accounted for less than 10% of the country’s solar PV additions as incentives phased out. Meanwhile, wind growth remained stable but strong at 80 GW. The country surpassed its 2030 ambition of 1 200 GW of combined solar PV and wind capacity six years early, in mid-2024.

The European Union installed around 60 GW of solar PV capacity in 2024, similar to in 2023. This was more than double the annual capacity added in 2021, before the energy crisis sparked by Russia’s full-scale invasion of Ukraine in 2022. However, outside of three large markets (Germany, Italy and Spain), newly installed PV capacity declined year-on-year in over 15 EU member states. While high electricity prices – and new incentives that increased the economic attractiveness of residential and commercial systems – accelerated the expansion of solar PV in 2022 and 2023, lower energy prices in 2024 and declining policy support led to a slowdown in growth in many markets.

At the same time, three major solar PV markets saw record levels of expansion in 2024: the United States, India and Brazil. In the United States, almost 50 GW of new solar PV capacity was added to the grid, shattering the previous record in 2023. India installed around 30 GW, almost tripling the previous year’s solar PV growth, while Brazil added over 16.5 GW thanks to large utility-scale additions, which supplemented the continued roll-out of distributed resources driven by a net metering scheme.

For wind, while China’s additions increased slightly in 2024, EU wind additions were 20% lower compared with 2023. Long permitting timelines, supply chain challenges and auction schedules were key factors. Wind capacity additions in India exceeded those seen in 2023, while the United States and Brazil saw a decline compared with last year.

Nuclear construction starts increased 50% in 2024, exclusively using Chinese and Russian designs

Globally, there were nine construction starts of nuclear reactors in 2024, 50% more than in 2023. When completed, they are expected to have a total capacity of 11 GW. China began construction of six nuclear reactors in 2024 (all of Chinese design) – one of the highest number of starts in the country ever and extending its market leadership in terms of construction. Pakistan began construction of one reactor in 2024, the first Generation III+ design of Chinese origin used outside of China. Egypt and Russia each began constructing one nuclear reactor in 2024, both of Russian design. Over the past five years, all nuclear construction starts have used either Chinese or Russian designs.

As of February 2025, there were a total of 62 nuclear reactors under construction in 15 countries around the world with a total capacity of nearly 70 GW. China accounted for nearly half of all nuclear capacity under construction in the world. Egypt, India and Turkey each have about 5GW under construction. Across advanced economies, a total of 9.5 GW is under construction, including two reactors in Japan, two in Korea, two in the United Kingdom and one in Slovakia.