Energy demand outstripping renewables growth

Renewable energy is growing faster than ever but is not meeting increasing global demand for power, according to a report.

The Energy Institute’s latest review of world energy compiled with Kearney and KPMG found that wind and solar energy alone expanded by an impressive 16% in 2024.

At 4%, electricity demand growth continued to outpace total energy demand growth, an indicator that the age of electricity is not just emerging but is shaping a new global energy system. However, total fossil fuel use also grow by just over 1%.

“These trends underscore a stark truth: while renewable energy is scaling faster than ever, global demand is rising even faster,” said the report.

The result is a fourth consecutive year of record emissions from the energy sector which it said highlighting the structural challenges in aligning global energy consumption with climate goals.