Growth in electricity demand outpaces energy
The International Energy Agency (IEA) has claimed that the world is now in the ‘age of electricity’. The new research ‘Global Energy Review 2026’ reports that global energy demand growth slowed to 1.3% in 2025, slightly below the previous decade’s average of 1.4%. Contributing to this slowdown was lower global economic growth, less extreme temperatures in some regions, and rapid uptake of more efficient technologies. However, over the same period global electricity demand increased by roughly 3%, and although this was slower than in 2024 (due to factors such as lower cooling demand in India and Southeast Asia) it remained above the average seen over the past decade. This uptick in demand was driven by multiple sectors across buildings and industry, and boosted by fast-growing demand from electric vehicles and AI data centres[i].
Cleantech drive helps flatten energy-related emissions
The research found that energy-related emissions reached an all-time high in 2025, but growth slowed- rising by around 0.4%. According to the report, China’s emissions declined in 2025, due to a surge in renewables and other low-emissions technologies, and India’s energy-related CO2 emissions were flat for the first time since the 1970s (excluding the Covid-19 pandemic). This suggests that an emissions peak is nearing, as electrification spreads rapidly across the global economy.
Further supporting this theory is the news that for the first time in modern history a renewable source contributed the largest share in meeting global energy demand growth. Solar PV met more than 25% of demand, followed by natural gas, which contributed 17%. Taking together all low-emissions sources (solar, wind, nuclear, hydropower and other renewables) these contributed almost 60% of the growth in global demand.
IEA Executive Director Fatih Birol said: “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. In today’s rapidly shifting landscape, countries that prioritise resilience and diversification will be best placed to manage volatility and deliver secure and affordable energy in the years ahead.”[ii]
Record 692GW of renewable capacity added in 2025
Last month research from the International Renewable Energy Agency (IRENA) claimed 2025 as a landmark year for renewable energy, with capacity additions growing by 15.5% year on year[iii]. The researchers found that total renewable power capacity reached 5,149 gigawatts (GW) after a record 692 GW were added in just 12 months. Growth was largely driven by solar, with the technology contributing 511GW (almost 75% of the total renewable capacity added in 2025), reinforcing its position as the world’s leading renewable source. Wind energy saw the second largest additions at 159 GW, up 14% year on year with China accounting for nearly three-quarters of the expansion. Together, solar and wind accounted for 96.8% of all net renewable additions last year, reflecting the biggest cost decrease among all renewable technologies.
References
[i] Key findings – Global Energy Review 2026 – Analysis - IEA
[iii] Near-700 GW Surge in 2025 Proves Renewable Energy Resilience
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