Electricity consumption is growing “much faster” than overall energy demand, according to a new report from the International Energy Agency (IEA), with solar PV becoming the largest contributor to growth in global energy supply.
The agency’s 2026 Global Energy Review indicates that overall energy demand growth slowed to 1.3% in 2025, down from 2.0% in 2024. Weaker economic growth, milder temperatures in some regions and the rapid uptake of more efficient technologies have all contributed.
At the same time, global electricity demand grew by about 3%, driven by multiple sectors across buildings and industry, as well as rising use of electric vehicles (EVs) and data centres.
While all major fuels and technologies expanded to meet this demand, solar PV is the largest single contributor to growth in the global energy supply, accounting for more than 25% of the increase.
“Global energy demand continued to increase in 2025 against a complex economic and geopolitical backdrop, with one trend unmistakeable: the expanding electrification of economies,” said IEA Executive Director Fatih Birol.
Countries that prioritize resilience and diversification will be best placed to manage volatility and ensure secure and affordable energy, he continued.
At the World Economic Forum Annual Meeting in Davos earlier this year, speakers, including the IEA’s Birol, discussed how countries can reduce exposure to energy shocks in the session Who is Winning on Energy Security?
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Nations that have invested in clean energy systems find themselves in a better position to withstand the crisis caused by the conflict in the Middle East, according to the World Resources Institute (WRI).
While these investments haven’t fully shielded countries from the impacts of war, it says, nations such as Pakistan, which has rapidly scaled solar PV, and China, which has invested heavily in renewable power generation, are seeing economic and security advantages from clean energy systems.
The combination of security of domestic supply and stability of cost is what enables clean energy systems to meet moments of crisis, the WRI notes.
Experts say that framing the transition to clean energy as an economic and security opportunity is helping countries like China and South Korea advance their energy transition. Learn more in this video:
The United Arab Emirates (UAE) has quit the Organization of the Petroleum Exporting Countries (OPEC) after nearly 60 years of membership. The move is seen as a significant blow to the oil group, which oversees global oil production and influences oil prices.
The Gulf state said it had left OPEC to focus on “national interests” and to forge its own path, reports Al Jazeera. OPEC quotas limit the UAE's production capacity to a maximum of 3.5 million barrels per day (bpd), but the country plans to increase its output to 5 million bpd by 2027.
While most observers think the organization will survive the setback, one analyst told the BBC it's "the beginning of the end of OPEC".
The European Commission is to encourage remote working to cut fossil fuel use amid the energy crisis sparked by the conflict in the Middle East. It will ask businesses to ensure at least one day of remote working, and recommends that member states also subsidize public transport and reduce VAT on heat pumps and solar panels.
A record 165 GW of wind power capacity was added in 2025, led by China, according to a report from the Global Wind Energy Council. The rise was driven by strong demand for new onshore wind.
Italian energy company Eni has made a major Indonesian offshore gas discovery. Preliminary estimates indicate a volume of 5 trillion cubic feet of gas and 300 million barrels of condensate, Reuters reports.
A new Forum report presents the opportunities for cooperation amidst global materials systems being under rising strain from concentrated supply, geopolitical volatility and environmental pressures. With 92% of business leaders surveyed calling for stronger international cooperation on materials to strengthen resilience, productivity and sustainability.
World events have always impacted energy markets, and the chart below shows how oil prices shifted at key political and economic moments in recent history. Learn more in this article.
With energy systems facing growing pressure from rising demand, geopolitical uncertainty and increasingly complex operations, some traditional digital tools are being pushed to their limits. Classical computing, high-performance computing and AI will remain essential – but to model, optimize and secure some of the sector’s hardest problems, quantum technologies are attracting increasing attention.
To learn more about the work of the Centre for Energy and Materials, contact Ella Yutong Lin: ellayutong.lin@weforum.org
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