Global electricity needs are expected to surge by 30 per cent over the next ten years as EVs, heat pumps and data centres push demand up.

To supply this rise, clean electricity and electrification are expanding faster than any shift in modern history, with energy sources going from around 9 per cent in 2015 to more than 14 per cent this year as share of primary energy and growing.

Rystad Energy revealed the figures in its flagship annual report, Global Energy Scenarios (GES) 2025.

Total wind and solar capacity additions for 2024–2025 set to exceed 700GW. Because of this, the research indicates that a 1.9C trajectory is more likely toward 2040, as a hybrid energy ecosystem is now in place.

Fuelling this growth in renewable energy development is a global increase in low-carbon investments. Currently, low-carbon technologies attract over $900bn annually, compared to $735bn for oil and gas. This difference widens to an estimated $391bn by 2030, reflecting a complete shift in growth dynamics.

The report notes, that although the transition to renewable energy is gaining momentum, oil and gas are expected to remain resilient in the near term. Oil demand is projected to peak by the early 2030s, and gas growth will likely slow down towards the end of this decade; however, neither fuel experiences a sharp contraction. The energy transition is fast enough to alter the growth profile of fossil fuels, but not fast enough to deeply disrupt their dominance by 2040. Oil and gas remain the backbone of the system, tied to transport, petrochemicals and energy services, where alternatives are not yet cost-competitive or scalable. This transition will have significant implications for costs and investments, as fossil fuel growth slows down and they are outpaced by renewables, ultimately leading to lower costs for consumers over time.

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