Electricity Drives Global Energy Demand Surge in 2024, Says IEA

IEA

Electricity led global energy growth in 2024

Electricity was the main driver of global energy demand growth in 2024, according to the IEA's Global Energy Review. Total energy demand increased by 2.2%, well above the 10-year average of 1.3% from 2013 to 2023. Electricity consumption alone rose 4.3%, boosted by extreme heat, data centers, transport electrification, and industrial use. As a result, the energy sector faced unprecedented pressure to balance supply, climate needs, and economic expansion.

The IEA noted that renewables and nuclear met 80% of the new electricity demand, while gas generation also rose steadily. In fact, 700GW of new renewable capacity was installed in 2024 — a record high. Together, renewable and nuclear power provided 40% of global electricity generation last year.

Coal, gas, and oil trends reflect shifting energy priorities

Global gas demand rose 2.7%, largely due to surging use in Asia, with China and India growing by over 7% and 10%, respectively. However, global oil demand growth slowed to just 0.8%, down from 1.9% in 2023, falling below 30% of total energy use. Electric vehicle adoption offset much of the oil demand for road transport, despite increases in aviation and petrochemical consumption. Meanwhile, coal demand growth dropped to 1.1% in 2024, half of 2023’s rate.

According to the IEA, extreme weather played a major role in global energy demand shifts.

Heatwaves in China and India accounted for more than 90% of the annual increase in coal consumption. Still, the global rise in energy-related CO₂ emissions slowed to 0.8% from 1.2% the year before.

The Metalnomist Commentary

The IEA’s 2024 review reveals the new normal: weather volatility and digitalization now shape energy flows more than economic cycles. Electricity’s dominance signals a long-term rebalancing of global power systems. For metal markets, this means sustained demand for grid, EV, and renewable infrastructure materials. As clean tech adoption accelerates, the metals supply chain becomes not only strategic—but indispensable.