"If the Federal Council is now considering abolishing the program — or at least withdrawing the federal contribution — it is mainly because of the windfall effects it generates," explains Philippe Thalmann, professor of environmental economics at EPFL.
"Today, 70% of our results come from abroad, while 70% of our investments are made in our historic service territory in Switzerland," says Cédric Christmann, Chief Executive Officer of Primeo Energie.
The cooling of buildings is causing global electricity demand to explode
In its "World Energy Review 2025," the International Energy Agency (IEA) notes that global energy demand increased by 2.2% in 2024, a growth driven largely by the electricity sector.
Published about ten days ago, the 2025 edition, as always, was rich in insights. It notably highlights strong regional disparities in energy demand. "Emerging economies accounted for more than 80% of the growth in global energy demand," the report states. China recorded the largest growth in demand in absolute terms in 2024, followed by India, then the United States. The energy thirst of the world’s leading power contributed to a notable return of demand growth in so‑called advanced economies, after several years of decline, with an increase of around 1%.
This geographical aspect is just one of the many interesting elements covered in this extensive study. Here is a summary of the other points that especially caught our attention.
Change in energy demand across certain regions of the world between 2023 and 2024. @IEA
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Surge in global electricity demand: The electrification of the planet is confirmed. "Electricity demand grew faster than overall energy demand and global GDP, increasing by 4.3% in 2024. This is the largest absolute increase ever recorded—excluding jumps seen during years of global economic recovery," the report notes. And this dynamic is accelerating further, as evidenced by the 2.5% rise already observed in 2023.
Globally, electricity consumption thus increased by 1,080 TWh, nearly double the annual average of the past decade. "This increase, larger than Japan's annual electricity consumption, constitutes a record outside post‑recession periods," the document continues.
In China alone, consumption jumped by more than 550 TWh (+7%), almost equivalent to the average annual global increase over the 2013–2023 decade. This growth even exceeds the average increases recorded by China itself over that period.
Different sources of electricity generation for certain regions in 2024. @IEA
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Air conditioning and data centres: Several factors explain the continued rise in electricity consumption: the expansion of light industry, the development of electric mobility, the growth of data centres and artificial intelligence, and the widespread use of air conditioning. "Cooling degree‑days—a measure of cooling‑related demand—were 6% higher in 2024 than in 2023, and 20% above the long‑term average between 2000 and 2020," IEA experts note. They add that "overall, weather effects contributed to about 15% of the increase in global energy demand."
Here lies the paradox of the world we live in: rising global temperatures are expected to drive an additional demand of more than 1,200 TWh for air conditioning by 2035—more than the current electricity consumption of the entire Middle East. A true vicious circle.
On the data centre side, whose expansion is closely linked to the rise of AI, the impacts on energy consumption are far from negligible. Installed capacity increased by around 20%, or nearly 15 gigawatts (GW), mainly in the United States and China. "However, the potential implications of artificial intelligence for the energy system are broader. It could notably help optimise the coordination of power grids and accelerate innovation cycles," the IEA researchers explained in another report published in October 2024.
Additions to renewable energy capacity worldwide between 2019 and 2024. @IEA
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Nuclear makes a strong comeback: In 2024, IEA experts estimate that 80% of the growth in global electricity generation was supplied by renewables and nuclear. "Together they accounted for 40% of total generation for the first time, with renewables alone providing 32%," the report reads.
While renewables again reached record levels last year, the clear revival of nuclear power should be highlighted. "In 2024, more than 7 GW of nuclear capacity were commissioned, a 33% increase compared with 2023. This is the fifth largest increase of the past three decades," IEA experts specify, adding that on the generation side, "nuclear energy contributed to a 100 TWh increase in 2024—the largest rise of the century, excluding the post‑Covid rebound."
China is driving the global dynamic, with construction of six new reactors started in 2024, one of the highest numbers ever recorded in the country. Globally, at the start of this year, 62 reactors are under construction in 15 countries, half of them in China, for a total capacity approaching 70 GW.
Share of the increase in global electricity generation between 2003 and 2024. @IEA
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CO2 emissions: The carbon emissions balance continued to rise in 2024, with markedly divergent trends across world regions. "CO₂ emissions increased in emerging markets and developing economies, as well as in the bunkers for international aviation and shipping, offsetting reductions seen in advanced economies led by the European Union, Japan and the United States," the IEA report states.
Although the planet remains heavily dependent on fossil fuels, whose demand continues to grow, encouraging signs are visible on the renewables side and their impact on emissions. The rapid deployment of clean energy between 2019 and 2024 avoided an annual consumption of more than 30 exajoules of fossil fuels—about 6% of total global demand in 2024—which represents roughly 2.6 gigatonnes of CO₂ avoided each year, or nearly 7% of energy‑related global emissions.
Without them, the increase in global CO₂ emissions over this period would have been three times greater.
Last October, another report from the International Energy Agency reminded readers that, despite growing momentum, we are still far from the trajectory required to meet the targets set by the IPCC or at recent COPs. "Too often, the decisions of governments, investors and consumers only exacerbate the flaws of the current energy system, instead of steering it towards a cleaner and safer path," the authors warned at the time.
The good news is that solutions exist. Investment flows into clean energy projects now approach $2,000 billion per year, nearly double the amounts combined spent on new oil, gas and coal supplies. Another positive point raised by the IEA concerns the costs associated with green technologies: they are falling, which works in their favour. By 2030, renewable energy capacity is expected to rise from 4,250 GW today to nearly 10,000 GW.
Technological advances in renewable energy are now available and could accelerate this energy transition, while enabling alignment with carbon neutrality goals. "Changes in consumer choices and government policies will have profound consequences for the future of the energy sector and the fight against climate change," IEA experts say.
This article has been automatically translated using AI. If you notice any errors, please don't hesitate to contact us.
"If the Federal Council is now considering abolishing the program — or at least withdrawing the federal contribution — it is mainly because of the windfall effects it generates," explains Philippe Thalmann, professor of environmental economics at EPFL.
"Today, 70% of our results come from abroad, while 70% of our investments are made in our historic service territory in Switzerland," says Cédric Christmann, Chief Executive Officer of Primeo Energie.
