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IEA Releases Global Energy Review 2025

IEA Releases Global Energy Review 2025

In 2024, extreme weather events, particularly high temperatures, influenced global energy demand. The International Energy Agency (IEA) reported a notable increase in the demand for natural gas and electricity, which rose by 20 per cent. This surge in energy consumption also led to an increase in coal use. The report, titled Global Energy Review 2025, brought into light the various factors driving this change.

Global Electricity Demand Surge

Global electricity demand increased by 4.3 per cent in 2024. This growth marked rise from the previous year’s 2.5 per cent. The increase was largely attributed to extreme temperatures, which resulted in higher cooling needs. The global cooling degree days metric rose by 6 per cent compared to 2023. Major regions affected included China, and the United States.

Sectoral Contributions to Electricity Growth

The buildings sector was a primary driver of electricity demand, growing four times faster than in 2023. It contributed over 600 terawatt-hours (TWh) to global consumption, accounting for nearly 60 per cent of total growth. The demand for air conditioning, exacerbated by severe heat waves, played important role in this increase. The industrial sector also contributed , with nearly 40 per cent of the total growth in electricity demand.

Electrification of Transport

The transport sector saw a remarkable increase in electricity consumption, rising by over 8 per cent in 2024. This was driven by the growing popularity of electric vehicles (EVs). Global sales of electric cars surpassed 17 million units, reflecting a 25 per cent increase from 2023. This shift towards electrification is expected to continue influencing energy demand patterns.

Renewable Energy and Nuclear Power Growth

The majority of the rise in electricity demand was met by low-emission sources. Renewable energy and nuclear power accounted for 80 per cent of the growth in global electricity generation. Renewables alone provided 32 per cent of total generation for the first time. In 2024, over 7 GW of nuclear power capacity was added, marking a 33 per cent increase from the previous year.

Coal and Natural Gas Consumption Trends

Despite the growth in renewables, global coal demand rose by 1 per cent in 2024. China remained the largest consumer, accounting for 58 per cent of global coal use. Natural gas emissions increased by approximately 2.5 per cent, driven by higher consumption in major economies like China and the United States. This increase contributed to global carbon emissions growth.

Impact of Extreme Temperatures on Emissions

Record high temperatures were linked to an increase of 300 million tonnes of CO2 emissions globally. Natural gas and coal emissions rose by 2.5 per cent and 0.9 per cent, respectively. This rise was primarily due to increasing consumption in China, and Southeast Asia. Despite the emissions increase, clean energy technologies are making a positive impact.

Questions for UPSC:

  1. Discuss the impact of extreme weather events on global energy demand patterns.
  2. Critically examine the role of renewable energy in mitigating climate change amidst rising emissions.
  3. What are the implications of increased electric vehicle adoption on electricity consumption? Explain.
  4. With suitable examples, discuss how industrial growth influences energy consumption trends globally.

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