- Renewables led global energy supply growth in 2025 for the first time outside a recession, with solar contributing 71% of the increase.
- Electricity demand grew by 3%, outpacing overall energy demand growth of 1.7%, with all new electricity demand met by low carbon sources.
- Asia Pacific continued to drive global energy trends as rapid electrification strengthened energy security and reduced dependence on imported fossil fuels.
Renewable energy became the largest contributor to global energy supply growth in 2025 for the first time outside a recession, marking a significant milestone in the global energy transition, according to the latest Energy Institute Statistical Review of World Energy.
The report finds that renewables added 3.3 exajoules of energy during the year, representing growth of 10%, ahead of oil, which increased by 2.5 exajoules or 1.3%, and natural gas, which rose by 2.4 exajoules or 1.6%. Solar remained the dominant driver, accounting for 71% of renewable energy growth after expanding by 30% during the year.
Battery storage capacity also continued to expand rapidly, increasing by 66% as countries improved their ability to supply solar electricity throughout the day.
Over the past decade, renewable energy has contributed 31% of global energy supply growth, approaching the contribution from natural gas at 34%.
Electricity continued to play an increasingly central role in the global energy system, with demand rising by 3% in 2025 compared with overall energy demand growth of 1.7%.
For the first time, all growth in global electricity demand was met entirely by low carbon energy sources. Rising demand from electric vehicles, artificial intelligence, data centres and electrification continued to strengthen the role of electricity, with more than one quarter of new vehicles sold globally during 2025 being electric.
Solar generation increased by 30% and supplied 8.7% of global electricity, overtaking wind, which accounted for 8.4% of generation, and approaching nuclear power at 8.8%. Wind generation also continued to expand, growing by 8.2% during the year.
The report identifies Asia Pacific as the main driver of global energy trends. Although the region has accounted for most fossil fuel consumption growth over the past decade, electricity demand continues to rise rapidly as economies electrify.
China is leading this shift, electrifying more quickly than both the United States and Europe. On a per capita basis, China’s road fuel demand has stabilised at one sixth of United States levels and one third of European Union levels.
The report notes that energy security concerns are increasingly accelerating investment in domestic renewable energy. Many major Asian economies, including China, Japan and India, remain heavily dependent on imported fossil fuels and are exposed to disruptions in critical shipping routes such as the Strait of Hormuz.
According to the report, the focus of energy security is shifting from diversifying fossil fuel supplies to reducing dependence on imported fuels altogether through investment in solar power, battery storage and electric vehicles. These technologies provide domestic energy over several decades while operating at two to three times the efficiency of fossil fuel based systems.
Global total energy supply exceeded 600 exajoules in 2025, increasing by 1.7% compared with the previous year. Despite the strong growth in renewables, fossil fuels continued to dominate the global energy mix, accounting for 86% of total energy supply.
Carbon emissions from the global energy sector increased by 1.1% to 35.8 gigatonnes of CO2. More than one third of the increase came from the United States, where emissions rose by four times more than in China. Europe recorded a 0.5% increase in energy related CO2 emissions, while North America experienced regional emissions growth of 2.7%.
Global oil demand increased by 1.3% to 103 million barrels per day during 2025. Demand in non OECD countries rose by 2%, while OECD growth slowed to 0.4%. China continued to record declining gasoline and diesel consumption for the second consecutive year.
The report highlights the strategic importance of fossil fuel import dependence following the closure of the Strait of Hormuz in early 2026. During 2025, India imported 86% of its oil requirements, while China and Europe relied on imports for 73% and 75% of their oil consumption respectively.
Global natural gas demand increased by 1.6%, below the 10 year average of 1.9%, with consumption remaining flat across Asia Pacific. The United States strengthened its position as a net energy exporter as liquefied natural gas exports rose by 27%.
Coal consumption grew by 0.7% globally. Consumption remained unchanged in China as expanding solar generation offset demand, while India’s coal use increased by just 0.6%, well below its 10 year average. In contrast, coal consumption in the United States rose by 10% as higher gas prices encouraged greater coal fired electricity generation.
The report concludes that trusted energy data has become increasingly important as geopolitical uncertainty and energy security concerns reshape global investment decisions. It argues that the continued growth of renewable energy and electrification is being driven not only by climate objectives but also by the economic benefits of greater efficiency, lower operating costs and stronger domestic energy security.
Download the full report HERE
Author: Bryan Groenendaal
