Global Energy System Sets Record Consumption and Investment Surge

The Energy Institute’s 75th Statistical Review shows worldwide energy demand rose 1.7% in 2025, pushing total supply past 600 exajoules for the first time. Every major fuel source hit a second‑consecutive annual high, while renewables delivered the largest share of electricity‑generation growth outside a recession. Solar power accounted for 72% of the renewable increase, expanding 30% globally, and battery storage grew 66%. Electricity demand rose 3% as electric vehicles, artificial intelligence and data centres added strain; data centres alone used 788 TWh, with the United States consuming 40% of that total.

The International Energy Agency forecasts $3.4 trillion in global energy investment for 2026, $2.2 trillion of which is directed to clean technologies. China, the United States and the European Union together account for roughly $2 trillion of this spending. The report links the surge to the effective closure of the Strait of Hormuz, which the IEA calls the most severe energy‑security crisis since the 1970s.

The World Economic Forum’s Energy Transition Index highlights top performers such as Norway, Sweden, Denmark and Finland, while noting that many developing nations still face infrastructure and financing gaps. Recent geopolitical tensions and supply‑chain disruptions have underscored the strategic importance of diversifying energy sources and boosting domestic renewable capacity.