Global energy trends in 2025 reflect a period of transition marked by slower overall demand growth and rapid expansion of clean energy technologies. According to the International Energy Agency’s Global Energy Review, energy consumption increased at a more moderate pace, even as electricity demand continued to grow strongly across sectors. Global energy demand rose by 1.3%, below the 1.4% decade average, while electricity demand increased by around 3%. Solar photovoltaic (PV) emerged as the largest contributor to global energy supply growth for the first time, accounting for over 25% of the increase. Meanwhile, renewable sources and nuclear together met nearly 60% of demand growth. The emissions in advanced economies grew by 0.5%, outpacing the 0.3% increase in emerging and developing economies.
Even as the transition gathers pace, emissions trends, shifting fuel consumption patterns, and regional disparities reveal a global energy landscape that remains uneven, influenced by economic conditions, technological progress, and climate variability.
Global carbon emissions saw a modest increase in 2025, rising at a slower pace as the rapid expansion of solar power helped balance out emission gains in advanced economies. According to the latest edition of the International Energy Agency’s (IEA) Global Energy Review, global energy demand expanded at a slower pace in 2025 compared to the previous year, even as electricity consumption continued to grow at a much faster rate than overall demand. A notable milestone highlighted in the report is that solar photovoltaic (PV) emerged as the largest contributor to the growth in global energy supply for the first time.
The IEA report states that global energy demand growth eased to 1.3% in 2025. This figure is slightly below the average growth rate of 1.4% recorded over the past decade and significantly lower than the level seen in 2024. The slowdown in demand growth can be attributed to several key factors, including
Together, these factors helped restrain overall energy consumption growth.
Electricity demand worldwide maintained strong momentum in 2025, increasing by about 3%, which is more than twice the pace of overall energy demand growth. Despite being slightly lower than the surge seen in 2024—largely due to reduced cooling needs in regions such as India and Southeast Asia amid less intense heatwaves—it remained above the long-term average of the past decade.
The expansion was broad-based, driven by consumption across residential and commercial buildings as well as industrial activity, and further supported by rising demand from electric vehicles and the growing footprint of data centres. While all major fuels and energy technologies contributed to meeting the growing demand, their rates of expansion differed significantly.
Solar PV stood out as the single largest contributor to the increase in global energy supply in 2025, accounting for more than 25% of the total growth. This marks the first instance in which a modern renewable energy source has led the expansion of global primary energy supply.
Natural gas followed as the second-largest contributor, with a 17% share, reflecting its continued importance in electricity generation across many parts of the world.
Taken together, renewables and nuclear power accounted for nearly 60% of the growth in energy demand. Importantly, the growth in electricity generation from these sources exceeded the total rise in electricity demand, highlighting their expanding role in the global power mix.
Reflecting IEA projections, global oil demand recorded a 0.7% increase in 2025. This increase was influenced by the continued rise in electric vehicle adoption, which has begun to limit the growth in demand for traditional road fuels. Electric car sales increased by more than 20% during the year, surpassing 20 million units and accounting for roughly one in every four new cars sold worldwide.
Coal demand trends showed regional variation. In China, the rapid expansion of renewable energy reduced reliance on coal in power generation. In contrast, coal demand rose in the United States, where higher natural gas prices led to a shift from gas to coal in electricity generation. Despite these differences, the overall rate of growth in global coal demand slowed in 2025.
Across the global totals, energy demand trends diverged sharply among major economies. As per the report, energy demand growth in the United States rose to its second-highest level this century—excluding post-recession recovery years, driven by
China continued to be the largest contributor to global energy demand growth in absolute terms last year, though its growth rate dropped sharply to 1.7% as renewables displaced less efficient coal and energy efficiency improvements intensified.
Growth in global energy-related carbon dioxide (CO₂) emissions also slowed in 2025, rising by about 0.4%.
China’s emissions declined during the year, supported by the rapid deployment of renewable and other low-emissions technologies.
For the first time since the 1970s—excluding the Covid-19 pandemic—India’s energy-related CO₂ emissions held steady, with an unusually strong monsoon season significantly curbing emissions growth. Notably, India’s carbon dioxide (CO₂) emissions increased by 0.5% in the latter half of 2025 and by just 0.7% over the entire year—the slowest pace of growth in more than two decades.
In contrast, advanced economies experienced an increase in emissions, driven by higher fossil fuel consumption during an unusually cold winter. As a result, emissions in advanced economies grew by 0.5%, outpacing the 0.3% increase in emerging and developing economies for the first time since the 1990s. The report also highlighted notable developments in the electricity sector during the year.
Solar PV generation increased by an additional 600 terawatt-hours globally in 2025, marking the largest annual increase ever recorded for any electricity generation technology. This expansion contributed to a decline in coal-fired power generation worldwide.
Battery storage also emerged as the fastest-growing technology in the power sector, with approximately 110 gigawatts of new capacity added—exceeding the largest-ever annual additions for natural gas.
Additionally, more than 12 gigawatts of nuclear power capacity entered construction, highlighting renewed momentum for nuclear energy in multiple regions.
Overall, the report highlights a global energy transition marked by slower demand growth, rising electrification, and rapid renewable expansion, led by solar PV. While emissions growth has moderated, regional disparities persist, underscoring the ongoing balance between fossil fuel dependence and the accelerating shift toward cleaner, more efficient energy systems.
India has experienced steady growth and structural transformation in its energy sector, marked by a balanced interplay of economic expansion, rising energy demand, and the growing integration of renewable energy sources.
According to the Ministry of Statistics and Programme Implementation’s report ‘Energy Statistics India 2026’, India’s Total Primary Energy Supply (TPES) recorded a healthy growth of 2.95% in FY 2024-25, reaching 9,32,816 Ktoe.
Coal continued to dominate the energy mix, remaining the largest contributor to total energy supply. Supply from coal (including lignite) increased significantly from 3,87,761 Ktoe in FY 2015-16 to 5,52,315 Ktoe in FY 2024-25. Other conventional sources such as crude oil and natural gas also showed consistent growth over the period, reflecting sustained energy demand across sectors.
A key highlight of the report is India’s vast renewable energy potential, estimated at 47,04,043 MW as of March 31, 2025. Solar energy accounts for the largest share, around 71%, and has witnessed a sharp rise in potential—from 7,48,990 MW in FY 2023-24 to 33,43,378 MW in FY 2024-25. Wind energy follows with 11,63,856 MW, while large hydro contributes 1,33,410 MW.
Notably, over 70% of this renewable potential is concentrated in six states—Rajasthan, Maharashtra, Gujarat, Andhra Pradesh, Karnataka, and Madhya Pradesh—indicating strong regional clustering of clean energy resources.
The growth in renewable energy capacity has been equally significant. Installed capacity from renewable sources (including both utility and non-utility) increased from 90,134 MW in 2016 to 2,29,346 MW in 2025, registering a compound annual growth rate (CAGR) of 10.93%. Similarly, electricity generation from renewable sources more than doubled—from 1,89,314 GWh in FY 2015-16 to 4,16,823 GWh in FY 2024-25—reflecting a CAGR of 9.17%.
Energy consumption patterns also indicate gradual improvement in efficiency and access. Per capita energy consumption rose from 15,296 megajoules per person in FY 2015-16 to 18,096 megajoules in FY 2024-25, growing at a CAGR of 1.89%. At the same time, transmission and distribution losses declined from around 22% to 17%, signalling better efficiency in electricity utilization and infrastructure improvements.
Total Final Consumption (TFC) of energy across end-use sectors increased steadily, rising by over 30.41% from 4,69,212 Ktoe in FY 2015-16 to 6,08,578 Ktoe in FY 2024-25. This reflects expanding industrial, commercial, and household energy demand in line with economic growth.
Financial flows into the energy sector have also strengthened significantly. Credit to the sector rose more than sixfold, from ₹1,688 crore in 2021 to ₹10,325 crore in 2025, indicating growing investment and confidence in the sector’s future.
Overall, the data highlight a dual trend: continued reliance on conventional energy sources, particularly coal, alongside the rapid expansion of renewable energy capacity and improving efficiency across the energy system.
The 2025 energy trends underline a structural shift rather than a temporary slowdown, with clean energy increasingly shaping global supply dynamics. The strong rise of solar, battery storage, and electrification signals a reorientation of energy systems, even as fossil fuels remain relevant in ensuring stability. Regional divergences in emissions and demand highlight uneven transitions. In India, expanding infrastructure, rising investments, and improving efficiency complement renewable growth. Going forward, grid modernization, storage expansion, and policy alignment will be critical to sustaining a resilient and low-carbon energy future.
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