Global energy demand is escalating rapidly, leaving renewable energy sources struggling to keep pace. According to the latest report from the International Energy Agency (IEA), renewables accounted for only 5.5% of total global energy consumption in 2024, highlighting their insufficient capacity to displace fossil fuels, particularly in non-OECD countries and energy-intensive sectors.
In 2023, global energy consumption reached a staggering 580 exajoules (EJ), with renewables contributing merely 29.97 EJ. By 2024, this figure rose to 32.74 EJ, reflecting a growth that still failed to significantly alter the overall energy landscape. Of the 11.9 EJ increase in global energy demand from 2023 to 2024, renewables only supplied 2.7 EJ, roughly 23% of the total increase. The remaining demand was primarily met through fossil fuels, particularly natural gas, which accounted for 4.1 EJ of the increase.
As a result, despite a record-breaking year for renewable energy, global carbon emissions rose in 2024. Notable exceptions exist, with countries like Argentina, the Netherlands, Poland, New Zealand, the United Kingdom, and Japan seeing renewable energy growth outpace that of fossil fuels. In the United States, renewables fulfilled about 67% of the annual energy demand increase, surpassing the global average yet still insufficient to eliminate further reliance on fossil fuels.
Renewables Show Potential, Solar Power Leads the Charge
Despite the challenges, certain segments of the renewable sector are thriving, particularly solar power. In 2024, global solar generation soared to a record 7.7 EJ, representing a remarkable 27.5% increase from the previous year. Over the past decade, solar output has grown at a compound annual rate of 25.8%, the fastest among major energy sources. Non-OECD countries produced 57% of all solar electricity last year, with China alone generating 3.0 EJ, nearly 40% of the global total.
India’s solar production has also seen significant growth, jumping from just 0.02 EJ in 2014 to 0.5 EJ in 2024, driven by government initiatives promoting rooftop solar programs and grid expansion. The United States remains a key player, generating 1.1 EJ of solar electricity in 2024, accounting for 14.6% of global output. However, the U.S. is experiencing a slowdown, with a 10-year compound growth rate of 24.4%, lagging behind the global average.
Wind energy also reached new heights in 2024, with global generation hitting 9.0 EJ. While this figure is impressive, wind’s 10-year compound annual growth rate of 7.2% is significantly lower than that of solar. China again leads in wind output, producing 3.6 EJ in 2024, slightly more than the combined output of the United States and the European Union.
Shifting Dynamics in Global Energy Production
Hydropower continues to dominate the renewable sector, supplying around 16.0 EJ of electricity in 2024. However, its growth has stagnated, averaging just 1.4% annually over the past decade due to geographical and environmental constraints. Countries like Norway, Sweden, Brazil, and Canada still rely on hydropower for over 10% of their overall energy demand, but the shift towards other sources is evident.
The most telling trend is the changing landscape between OECD and non-OECD countries. In 2014, OECD nations led in the deployment of renewable technologies. Today, non-OECD countries have overtaken them, producing more non-hydro renewable electricity and growing at a faster rate. This transition is not solely driven by ambition; it is also economically motivated. Solar and wind have emerged as competitive power sources globally, allowing developing nations to reduce fuel imports, foster local job creation, and enhance grid reliability.
The data underscores a crucial point: while renewable energy is no longer a niche market, it remains limited in its transformative impact. The global energy transition is being outpaced by rising energy demand. Solar is advancing rapidly, non-OECD countries are making strides, and hydropower’s dominance is waning, yet fossil fuels continue to play a significant role in the global energy mix.
There are reasons for cautious optimism. Innovation is ongoing, costs are declining, and emerging markets are demonstrating their capacity to scale renewable energy solutions quickly. Nevertheless, for the foreseeable future, renewables face an uphill battle against ever-increasing global energy demand.
