Solar PV was the leading power generation technology in 2024 as it grew by 30% year-on-year (YoY) to 553 GW, according to the International Energy Agency (IEA). It represented almost 80% of around 700 GW of renewable energy capacity installed last year when the global energy demand grew at a faster-than-average pace, it added.

The 700 GW of new renewable power capacity installed worldwide last year set a new annual record for the 22nd consecutive year, states the IEA in its latest report Global Energy Review 2025. The report covers energy demand, supply, and uptake of new energy technologies and energy-related CO2 emissions.

With the 2024 PV additions, the total installed solar PV capacity reached around 2.2 TW. Together with wind energy, it accounted for 95% of overall renewable energy growth last year. China led the growth for the solar PV segment as it accounted for over 340 GW DC, 30% more than the previous year. According to the China Photovoltaic Industry Association (CPIA), the country installed more than 277 GW in 2024.

In its report, the IEA notes that generation from solar PV and wind increased by a record 670 TWh, up 170 TWh from natural gas and 90 TWh from coal.

According to the IEA, the combined share of solar PV and wind in the power generation in the European Union (EU) surpassed the combined share of coal and gas for the 1st time last year. In the US, solar PV and wind overtook coal with a 16% share, and the 2 technologies accounted for nearly 20% of the total generation in China.  

Nuclear power capacity expanded by 33% YoY with over 7 GW of new additions. Electricity generation from nuclear in 2024 rose by 100 TWh. This is one of the biggest increases in this power generation technology. It was, however, natural gas that saw the most demand growth among fossil fuels, led majorly by China, thanks to the higher power consumption.

“The sharp increase in the world’s electricity use last year was driven by record global temperatures, which boosted demand for cooling in many countries, as well as by rising consumption from industry, the electrification of transport, and the growth of data centres and artificial intelligence,” reads the report.

In all, the global energy demand grew by 2.2% last year, with emerging and developing economies accounting for more than 80% of the total. Demand is growing even in advanced economies ‘after years of declines.’

IEA Executive Director Fatih Birol opined that the strong expansion of solar, wind, nuclear power, and electric vehicles (EV) is increasingly ‘loosening the links between economic growth and emissions.’ Together with heat pumps, since 2019 these clean technologies now prevent 2.6 billion tons of CO2 emissions annually, according to the report writers.

“What is certain is that electricity use is growing rapidly, pulling overall energy demand along with it to such an extent that it is enough to reverse years of declining energy consumption in advanced economies. The result is that demand for all major fuels and energy technologies increased in 2024, with renewables covering the largest share of the growth, followed by natural gas,” stated Birol.