Renewable energy sources grew at a record pace in 2024, but global energy demand rose even faster, leading to continued growth in fossil fuel consumption, a new report by the London-based Energy Institute revealed on Thursday.
While renewable energy is scaling faster than ever, global demand is rising even faster, according to "Statistical Review of World Energy," published with consultancies KPMG and Kearney.
"Rather than replacing fossil fuels, renewables are adding to the overall energy mix," the report said.
"This pattern, marked by simultaneous growth in clean and conventional energy illustrates the structural, economic, and geopolitical barriers to achieving a truly coordinated global energy transition," it added.
According to the report, wind and solar power grew by 16%, cementing their status as the fastest-growing parts of the global energy system.
China accounted for 56% of new renewable capacity additions, with solar power nearly doubling over the past two years.
Wind and solar grew nearly nine times faster than total energy demand, while fossil fuel consumption also rose by just over 1% last year.
- Global energy demand rises 2%
Meanwhile, global energy demand increased by 2% in 2024, reaching a record high of 592 exajoules, the report said.
All major energy sources, such as coal, oil, gas, renewables, hydro and nuclear, hit all-time consumption highs.
Electricity demand grew by 4% last year, outpacing total energy demand and signaling that the age of electricity is not just emerging but reshaping the global energy system.
In a year when average global temperatures consistently exceeded the 1.5°C threshold, energy-related greenhouse gas emissions rose by 1%, setting a new record for the fourth straight year.
Crude oil demand in OECD nations held steady after a modest decline the year before, while consumption in non-OECD economies, home to most of the world's demand growth, rose 1%.
China bucked the trend, with crude use slipping 1.7%, hinting that 2023 may have marked its peak.
- Gas demand rebounds by 2.5%
Elsewhere, global natural gas demand rebounded by 2.5% in 2024 as markets stabilized following a slump in 2023.
India's coal consumption rose 4%, reaching a level equal to the combined demand of the CIS, Southern and Central America, North America, and Europe.
Energy Institute President Andy Brown said data reflects a "complex picture of the global energy transition."
Noting that electrification is accelerating, particularly in developing economies where access to modern energy is expanding rapidly, Brown said: "However, the pace of renewable deployment continues to be outstripped by overall demand growth, 60% of which was met by fossil fuels."
"The result is a fourth consecutive year of record emissions, highlighting the structural challenges in aligning global energy consumption with climate goals," he added.
Nick Wayth, CEO of the Energy Institute, said all major energy sources, including nuclear and hydropower, reached record consumption levels in 2024, marking the first time since 2006 and reflecting surging global demand.
By Handan Kazanci
Anadolu Agency