Solar Leads Global Energy Growth as Electricity Demand Surges, IEA Says

Solar Leads Global Energy Growth as Electricity Demand Surges, IEA Says

The International Energy Agency (IEA) said solar power and battery storage reached record deployment levels in 2025, marking a structural shift toward a global “Age of Electricity,” according to its latest Global Energy Review 2026.

Solar energy accounted for 25% of global energy supply growth, the largest share for any source, while overall energy demand growth slowed to 1.3%. In contrast, electricity demand continued to rise sharply, driven by the rapid expansion of electric vehicles, heat pumps, and the growing power needs of artificial intelligence and data centers.

Battery storage emerged as the fastest-growing power technology, with 110 gigawatt (GW) of new capacity added in 2025—exceeding the annual expansion record of natural gas capacity. The IEA noted that this surge is playing a critical role in supporting grid stability as renewable integration accelerates.

Natural gas, however, remained a key component of the global energy mix, contributing 17% of total energy growth. The agency highlighted its ongoing importance in providing baseload power and supporting industrial demand, particularly across emerging markets and the Middle East.

On emissions, the report pointed to a significant slowdown in growth, with global energy-related CO₂ emissions rising by just 0.4% in 2025. This trend reflects a growing decoupling of economic growth from carbon output, supported by declining emissions in China and stable levels in India.

For the Middle East and North Africa (MENA) region, the IEA’s findings signal a dual opportunity. Countries such as Egypt can leverage their natural gas resources as a transition fuel while accelerating investments in electricity infrastructure, including cross-border interconnections and solar capacity.

The IEA emphasized that while clean energy investment continues to outpace fossil fuels, maintaining energy security will require sustained spending on natural gas infrastructure alongside rapid expansion of grid-scale storage.

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Fatma Ahmed 2590 Posts

Fatma Ahmed is a staff writer with six years’ experience in Journalism. She is working in the field of oil and gas for four years. She also worked in the field of economic journalism for 2 years. Fatma has a Bachelor Degree in Mass Communication.

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