In 2025, the global energy demand growth slowed to 1.3%, but electricity demand rose about 3%, driven by industries, EVs, and data centers
Solar PV added a record 600 TWh, meeting around 70% of power demand growth, and became the largest contributor to energy demand growth for the first time
Renewables dominated expansion, with close to 800 GW added (75% solar), while fossil fuel demand growth remained modest
Global energy demand growth slowed to 1.3% in 2025 compared to the previous years due to economic growth, milder weather, and improved efficiency, yet electricity use continued to rise much faster, with solar PV supplying the largest share of the increase for the 1st time, says the International Energy Agency (IEA) in a new report.
Solar PV energy generation increased by a record 600 TWh last year, the largest ever observed for any source (outside of periods of post-crisis recovery), taking its total electricity generation to nearly 2,700 TWh. The rise in solar PV alone met around 70% of the electricity generation growth.
“This was more than double its output in 2022 and brings solar PV’s share in total global electricity generation to over 8%,” according to the IEA. Even as China led the growth in solar PV generation last year, the growth of this source was a ‘global story’ as the US, India, and the Middle East, too, reported increases of at least 20%.
With a nearly 12% annual increase in capacity that surpassed 600 GW for the 1st time, the cumulative installed global solar PV capacity reached around 2,800 TW. It is now the technology with the ‘largest’ installed capacity globally. The IEA previously forecast annual solar additions to average at around 540 GW annually through 2035 (see IEA Forecasts Around 540 GW Annual Solar PV Growth By 2035).
At least 30 nations installed more than 1 GW of solar PV in a single year. China alone commissioned close to 370 GW of solar PV. As per the country’s National Energy Administration (NEA), China’s solar capacity additions in AC terms exceeded 315 GW (see China Sets New Annual Solar PV Installation Record In 2025).
The IEA pegs annual global renewable capacity additions at a record 800 GW, with solar accounting for 75%.
“This marked the 23rd consecutive year that renewables set new expansion records,” it claims.
Solar PV was the largest contributor to meeting rising energy demand, accounting for over 25% of the increase, followed by natural gas at 17%. The IEA says this was the 1st time a modern renewable source led global energy demand growth.
“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,” said IEA Executive Director Fatih Birol. “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.”
As solar PV electricity generation rose, demand for oil, gas, and coal was subdued. While demand for the latter still increased in 2025, the growth was slower than in 2024. It was the low-emission sources – including solar, wind, nuclear, and hydropower – that made up nearly 60% of the total demand growth.
Global oil demand rose by 0.7%, slower than the previous year, owing mainly to the weaker growth in petrochemical feedstocks, notably in China. Electric car sales climbed over 20% to more than 20 million units, which also kept oil demand for road transport in check, point out the analysts.
Coal demand grew modestly by around 0.4% on a year-on-year (YoY) basis. Strong growth in renewables reduced coal use in electricity generation in China, while gas demand rose by around 1% (2024: 2.8%) due to high prices, though most of the increase was concentrated in the US and the European Union (EU).
Nevertheless, there was about a 3% increase in electricity demand – more than twice the rate of overall energy demand growth – driven by buildings, industry, electric vehicles, and data centers, despite slower growth than in 2024.
This reaffirms that the world has entered the Age of Electricity, claims the IEA in its report titled Global Energy Review 2026.
Battery storage was the fastest-growing power technology, though, with its annual additions increasing by around 40% in 2025 to 108 GW. Lithium-iron phosphate (LFP) batteries now account for around 90% of deployments.
The complete IEA report is available for free download on its website.