Global energy demand rose 1.7% in 2025 to its highest level on record, even as renewable energy supplied the largest share of new energy added worldwide, according to the latest Statistical Review of World Energy released by the Energy Institute.

The report, produced in partnership with Ember and with contributions from Kearney and KPMG, shows electricity systems are becoming increasingly dependent on low-carbon sources. Electricity generated from renewable and other low-carbon technologies reached its highest level so far, reflecting continued investment in clean energy.

Electricity consumption worldwide increased by 3% during the year. China recorded the largest rise among major economies, with demand growing by 5%. According to the report, the country's annual increase alone was equal to Germany's total yearly electricity consumption.

Solar power remained the fastest-growing source of electricity generation. Global solar output expanded by 30% during the year, while installed battery storage capacity increased by 66%. The review says these additions reduced the need for fossil fuel-based electricity generation in several markets.

Even so, overall greenhouse gas emissions continued to rise. Global carbon emissions increased by 1.1% in 2025. China's emissions grew by 0.3%, while India recorded a 0.9% increase.

The report also points to wide differences in how countries are progressing through the energy transition. In the United States, emissions rose 3.2% after coal-fired electricity generation increased by 13%. In absolute terms, the report says the increase in US emissions was four times larger than the rise recorded in China.

Global oil production also shifted during the year. Output across the Americas grew by 4.8%, leaving the region producing around 20% more oil than the Middle East.

Andy Brown, president of the Energy Institute, noted that the increasing need for energy sources that would ensure reliability and affordability is still affecting energy markets around the world. He noted that demand was increasing in each major type of energy source during the year due to the difficulty of providing for increasing consumption amid climate ambitions.

Maria de Kleijn, Europe sustainability lead for Kearney, noted that renewable energy became an important part of the energy market around the world. She noted that the development of electricity grids, storage capabilities, and flexibility of networks would be required to support further development of renewables.