In News:

The world's energy demand grew at 2.2% in 2024, a pace described as "faster than average" by the International Energy Agency (IEA) in its Global Energy Review.

Key Highlights:

Global Energy Demand

• Global energy demand grew by 2.2% in 2024, faster than the average of the past decade.
• Emerging and developing economies accounted for over 80% of the increase, with Asia leading the growth.
• Electricity demand rose 4.3%, nearly double the past decade's average.

Rise of Renewables

• Renewables were the fastest-growing energy source, contributing 38% of global energy growth.
• A record 700 GW of renewable power capacity was added globally in 2024 (22nd consecutive annual record).
• Low-emission sources (renewables + nuclear) accounted for 80% of the increase in electricity generation.

Key Country Contributions:

• China added:340 GW solar and 80 GW wind (≈ two-thirds of global additions).
• India added:30 GW solar, triple the previous year's addition.

Global Renewable Generation (2024):

• Solar: +480 TWh
• Wind: +180 TWh
• Hydropower: +190 TWh (mainly due to favorable weather, not capacity increase)

Coal Trends:

• Coal demand rose 1%, reaching a record high in 2024.
• China derives 60% of its electricity from coal; India, about 75%.
• Coal’s global electricity share dropped to 35% – the lowest since the IEA's inception in 1974.
• The seaborne coal market is shrinking as top consumers are also top producers with domestic-use policies.

Natural Gas Outlook

• Natural gas demand rose 2.7%, hitting a record 115 billion cubic metres in 2024.
• Driven by:
  • China's adoption of LNG trucks
  • Heatwaves increasing power demand
• However, demand fell in late 2024 due to rising LNG spot prices, indicating price sensitivity in Asia.

Crude Oil Demand Slows

• Oil demand grew just 0.8%, mainly from the petrochemical sector.
• Transport-related oil use declined due to:
  • Growth in electric vehicles (EVs) (especially in China)
  • Expansion of LNG trucks and high-speed rail networks

About the International Energy Agency (IEA)

• Founded: 1974 (post-1973 oil crisis) by OECD nations.
• HQ: Paris, France.
• Members: 31 countries (only OECD nations can be full members); India is an association country.
• Mandate: Energy security, sustainability, and global cooperation.
• Key Reports: World Energy Outlook, India Energy Outlook, World Energy Investment Report, Global Energy Review.