IEA: Global Electric Demand Grew Faster than Overall Energy Use in 2025

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Written by John Egan for IIR News Intelligence (Sugar Land, Texas)

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Summary

Worldwide electric demand grew at over twice the rate of overall energy use in 2025, according to a new report from the International Energy Agency, which noted a surge in output from solar generators.

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'Age of Energy' Becomes 'Age of Electrification'

In analyzing global energy trends, the International Energy Agency (IEA) has for some time referred to the current period as the "age of electrification." This week it issued another report that reinforced that moniker, as global electricity use in 2025 grew at over double the rate of broader energy demand growth.

According to Industrial Info Resources data, there are about 177,202 operating energy plants in eight segments across the world. Industrial Info Resources is tracking 130,421 energy projects in those eight sectors on which construction is set to begin between January 2026 and December 2028, worth about US$14.14 trillion. The countries with the largest dollar value of energy projects scheduled to begin construction during that three-year period are China (about US$3 trillion), the U.S. (approximately US$1.9 trillion), India (roughly US$1.1 trillion), Australia (about US$606 billion) and Canada (US$422 billion).

Global Energy Demand Growth

Around the world, energy demand growth slowed to 1.3% in 2025, well under 2024's 2% pace and just below the annual average for the previous decade, the IEA said in its "Global Energy Review 2026," released April 20. Slower economic growth and less-robust growth in energy-intensive industries in some regions, combined with weather, lower cooling demand and faster efficiency improvements, all contributed to slower demand growth last year, the agency said.

At 1.3%, global energy demand growth last year was well down from the 2024 level of nearly 2%, and about level with the annual average gain from 2013-2023, the IEA observed.


Source: IEA

Worldwide demand for oil, natural gas and coal all grew last year, but at slower rates than in 2024, the 48-page report added. Demand for solar power, on the other hand, rose at a rapid clip of 27% in 2025.

On an absolute basis, energy demand growth in China last year was the largest in the world at nearly 3 Exajoules (EJ). But its rate of growth, at 1.7%, represented a slowing from earlier years. The IEA attributed that slowdown in part to efficiency gains. In the U.S., overall energy demand rose faster on a percentage basis, about 2.1% in 2025, but overall growth was just under 2 EJ.

The IEA said that global oil demand rose by 0.7%, a slowing from earlier years that reflected continued growth of electric vehicles (EVs). Last year, EV sales rose over 20% to exceed 20 million units, which gave it a 25% share of new-car sales worldwide.

Strong renewables growth reduced coal use in power generation in China, but coal demand increased in the U. S. as high natural gas prices drove gas-to-coal switching in electricity generation, the IEA commented. Overall, the worldwide rate of coal demand growth slowed in 2025.

Worldwide Electricity Demand Growth

Use of electricity rose nearly 3% around the world last year, more than double that of the broader increase in energy use. This continued a trend in which electric demand growth has outstripped the larger category of energy demand growth, according to "Global Energy Review 2026."

"Global energy demand continued to increase in 2025 against a complex economic and geopolitical backdrop, with one trend unmistakable: the expanding electrification of economies," said IEA Executive Director Fatih Birol. "Electricity consumption is growing much faster than overall energy demand, and one energy source is growing much faster than any other. Solar PV accounted for over a quarter of all of the world's energy demand growth--more than any other source, for the first time--followed right after by natural gas."

Last year's global electric demand growth was driven by data centers and EVs, the IEA report added. Electric demand growth in China, at about 450 terawatt-hours, exceeded that of advanced and emerging countries combined.

Global CO2 Emissions

The growth in global emissions of carbon dioxide (CO2) tied to energy slowed to approximately 0.4% last year, the slowest one-year gain since 2021 and well below the growth rate of three prior five-year periods.

China's emissions fell about 0.5% due to surging renewables and other low-emissions technologies, the IEA reported. India's energy-related CO2 emissions fell approximately 0.1%. An unusually strong monsoon season led to greater use of hydropower, and a surge in renewable electric generation, combined to reduce slightly India's CO2 emissions.

By contrast, in advanced economies such as the U.S, an especially cold winter pushed fossil fuel use and emissions higher. U.S. CO2 emissions rose about 2.2% in 2025, the IEA report said, largely due to increased coal use by electric generators due to higher-priced natural gas.

Taken together, these developments meant that emissions from advanced economies grew faster last year than those from emerging and developing economies for the first time since the 1990s, the report observed.

By the Numbers

• Global energy use rose about 1.3% in 2025, according to a new IEA report.
• U.S. energy demand rose 2.1% last year, faster than China at 1.7%.
• The IEA report noted that worldwide electric demand growth of just under 3% was more than twice as fast as overall energy demand growth.
• Demand grew 27% for electricity generated by solar photovoltaic stations last year, outstripping demand growth for natural gas (17%), oil (15%) and coal (9%).
• Worldwide emissions of carbon dioxide (CO2) increased about 0.4% in 2025, lower than any single year since 2021 and well under three prior five-year periods. Emissions from advanced economies increased, offsetting reduced emissions from China and India last year

Key Takeaways

• Worldwide electric demand growth, at nearly 3% in 2025, was more than double the rate of growth in use of all energy, at 1.3%, according to a new report from the IEA.
• Increased demand for electricity stemmed in part from data centers and electric vehicles.
• Global emissions of CO2 from the energy sector rose about 0.4% last year, the slowest rate since 2021. Emissions from advanced economies rose while emissions from emerging economies such as China and India fell last year.

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Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).