Energy supply - IEA: Renewable Energy Exceeds Coal in Power Generation
Renewable energy's share in global power generation is expected to surpass coal-generated energy for the first time according to an IEA study in Paris, with renewable power generation increasing rapidly and its share in global power supply rising from 30% in 2023 to 35% in 2025.
Global power demand is also rising
The global power demand is increasing by around 4% in the current year compared to 2.5% in 2023. This growth is expected to continue in 2025 with an additional growth of around 4%. Solar power is expected to cover roughly half of the increase in global power demand in this and the next year, with solar and wind energy together accounting for three quarters of the growth, according to the IEA.
Reasons for increasing power demand include strong economic activity in major economies such as India, China and the USA. In the EU, power demand is expected to grow at a lower rate of 1.7%. Heatwaves and the increased use of air conditioning, as well as the expanding data center sector which requires large amounts of electricity, are also driving up power demand.
Prognosis: Continued coal-fired power generation
Despite the strong growth in renewable energy, global coal-fired power generation is unlikely to decline significantly this year due to strong demand growth, particularly in China and India, according to the IEA. As a result, CO2 emissions from the global power sector are expected to stagnate with a slight increase in 2024, followed by a decline in 2025.
"The growth in global power demand in this and the next year will be among the fastest of the last two decades, highlighting the growing role of electricity in our economies and the impacts of extreme heatwaves," said the IEA's Director for Markets and Security, Keisuke Sadamori. "It is encouraging to see the share of clean energy in the power mix continuing to rise, but it needs to happen much faster to meet international energy and climate goals."
- The surge in renewable energy's share in power generation is a significant development internationally, as highlighted by the International Energy Agency (IEA) in Paris.
- Power generation from renewable sources, such as solar and wind, is contributing significantly to the global energy supply, surpassing coal-generated energy for the first time.
- In the context of rising global power demand, renewable energy sources like solar power are projected to cover almost half of the increase, with wind power playing a significant role as well.
- The International Energy Agency (IEA) Energy Agency forecasts that solar and wind power will collectively account for three quarters of the growth in global power demand in the coming years.
- In India, a major economy, the strong economic activity is one of the reasons driving the increase in global power demand.
- The Paris Agreement, an international agreement, sets ambitious targets for reducing greenhouse gas emissions, with renewable energy playing a crucial role in achieving these goals.
- China, another major economy, is also contributing to the rise in global power demand, and its continued reliance on coal-fired power generation is a concern for environmentalists.
- Wind power is another renewable energy source that is gaining traction globally, contributing to the diversification of energy sources and the reduction of dependence on fossil fuels.
- The IEA's Director for Markets and Security, Keisuke Sadamori, emphasized the importance of accelerating the transition to clean energy to meet international energy and climate goals, as the growth in power demand highlights the increasing reliance on electricity in our economies.
