Global natural gas demand increased 2.7% in 2024, reaching an all-time high, according to the Global Energy Review report by the International Energy Agency. Three quarters of this growth came from emerging and developing economies, with demand rising by 115 billion cubic meters throughout the year.
The growth in global gas demand was largely attributed to an increase in industry and electricity generation, accounting for 75% of growth throughout the year. Gas demand for power generation rose 2.8% in 2024 while residential and commercial building demand grew 1.1%. Natural gas represented the second-largest power generation source in 2024, accounting for 20%.
While gas represented the strongest demand growth among fossil fuels, coal and oil saw their own respective growth. Coal demand rose 1.1% throughout 2024 owing to the need for greater cooling solutions worldwide, rising by approximately 67 million tons equivalent. The power sector was a large contributor to demand growth, accounting for two-thirds of global consumption and reaching a record 10,700 TWh in 2024. Coal remains the largest source of power generation in the world, accounting for 35% of total power generated.
In the oil sector, demand growth was more gradual, reaching 0.8% in 2024. Slower growth compared to previous years was largely due to slower industrial growth and the impact of electric vehicles. However, industries such as chemical feedstocks and aviation contributed to growth in oil demand for 2024. These sectors accounted for half of oil demand, following a strong post-COVID rebound.
In addition to fossil fuels, renewable energy and nuclear saw rapid growth throughout the year. These resources accounted for the lion’s share of power generation – which increased by 1,200 TWh in 2024 -throughout 2024, representing 80% of total generated power for the year.
Breaking down these sectors, solar PV led the way, with demand increasing by 480 TWh. Solar PV additions rose by 30%, reaching 550 GW in 2024. This translates into 2.2 TW of total installed solar capacity worldwide. Wind demand increased by 180 TWh, with 120 GW in wind additions throughout the year, while hydropower demand rose 190 TWh. Hydropower additions totaled 25 GW – double 2023 levels – owing to installations in Africa and Southeast Asia.
Meanwhile, over 7 GW of nuclear capacity was brought online in 2024, showing a 33% increase compared to 2023. This growth brings the total installed nuclear capacity worldwide to 420 GW. Nine new nuclear facilities started construction in 2024, including a reactor in Egypt.
