Clean energy surpasses 40pc of global electricity demand for the first time since the 1940s

LONDON: For the first time since the 1940s, clean energy sources accounted for over 40 percent of global electricity demand last year, according to a report by the energy think tank Ember.

This significant milestone was largely driven by a rapid expansion in solar power capacity, which has doubled in the last three years. Ember’s report highlights that solar farms have been the fastest-growing energy source globally for two decades consecutive.

Phil MacDonald, Ember’s managing director, remarked that solar power is now a vital component of the global energy transition. He emphasised that with the integration of battery storage, solar energy is poised to become a dominant force, crucial in addressing the increasing worldwide demand for electricity.

Despite this growth, solar power still constitutes a relatively small segment of the global energy mix, representing nearly 7 percent of the total electricity generated last year. Wind power fared slightly better, comprising just over 8 percent. These rapidly advancing technologies remain overshadowed by hydro power, which has maintained a steady presence at around 14 percent of the world’s electricity in 2024.

Hydropower is one of the oldest renewable energy technologies, contributing significantly to global electricity in the 1940s when the overall power system was approximately 50 times smaller than it is today. The continued expansion of solar power is indicating that clean energy—encompassing nuclear and bioenergy—is likely to grow at a pace that outstrips overall electricity demand. This trend suggests that reliance on fossil fuels in the global power sector may diminish.

Sheikh Khalid and Microsoft’s Brad Smith discuss innovative paths to clean energy

Ember previously anticipated that 2023 would mark the peak year for emissions from electricity, following a period of stabilization earlier in the year. Climate experts had hoped for a decrease in emissions; however, widespread heatwaves led to a surge in electricity demand for air conditioning and refrigeration, causing a 1.4 percent rise in fossil-fuel-based electricity generation that year.

The report covering 93 percent of the global electricity market across 88 nations found that this demand spike pushed emissions from the power sector up by 1.6 percent to record levels last year.

MacDonald noted that while heatwaves are not expected to trigger a similar surge in demand in the coming year, the growing reliance on electricity for artificial intelligence, data centres, electric vehicles, and heat pumps is predicted to significantly influence electricity demand. Collectively, these technologies accounted for a 0.7% rise in global electricity demand in 2024—double the contribution from five years prior.

“The world is observing how AI and EV technologies will shape electricity needs,” MacDonald stated. “It’s evident that the rapid growth of solar and wind energy is on track to meet this demand, and those who expect fossil fuel generation to continue rising will likely be disappointed.”