-
Energy security
…demand; with rising air‑conditioner ownership and increasing temperatures, this value rose to 7 GW in 2024 and could further rise to 12 GW in 2030 without further efficiency action. If India were to experience similar heatwaves as in recent years – with temperature anomalies of over 4°C – the additional peak load would amount to 47 GW. However, if all new air conditioners in India were highly efficient (e.g. through increased minimum energy performance standards), peak load during a heatwave could be reduced by almost 9 GW or about 20%, significantly decreasing the risk of blackouts or brownouts. Need more information? IEA (2025), Energy Security.
-
Grid investments
…nuclear. Key analysis IEA analysis of nine major regions shows that increasing electricity generation and grid capacity by one terawatt-hour (TWh), will require investments of USD 30 to 110 million in emerging economies and USD 75 to 150 million in advanced economies. In order to save the same amount of electricity, energy efficiency measures would cost only between USD 10 million and 50 million. A closer look at grid management The deployment of energy efficiency measures typically requires less time than the implementation of most new generation and grid infrastructure. On average, new generation and grid infrastructure can take years to implement, whereas efficiency measures…
-
Economic growth
…impact of energy efficiency policies on macroeconomic performance still needs to be better understood and systematically measured, studies have highlighted some economic benefits:Growth in economic activityVarious studies have modelled the impact of select energy efficiency policies on economic activity and found a positive correlation. In Canada, an analysis of the country’s policy package at the time found that every USD 1 spent on energy efficiency programmes would generate between USD 4 and USD 7 in GDP between 2017 and 2030. In the United States, a study funded by the Department of Energy estimated that doubling energy productivity could…
-
Energy Efficiency 2025
Market Report Energy Efficiency 2025 is the IEA’s primary annual analysis on global energy efficiency developments, showing recent trends in energy intensity and demand, investment, employment and policy. The report provides sector-specific analysis on industry, buildings, appliances and transport and explores system-wide themes such as emissions reductions, energy security, affordability and competitiveness. This report is launched in parallel with an update to the IEA Energy Efficiency Progress Tracker, which can be accessed through the IEA website.
-
Energy Management for Industry
Driving efficiency implementation This report demonstrates the value of energy management for industry and governments. It illustrates how more systematic approaches to energy efficiency can contribute to ensure continual, durable, and increasing improvements that support competitiveness and energy security. It shows how new advances in energy management, such as increased digitalisation and artificial intelligence, can provide further benefits at speed and at scale. Building on best practices and innovative approaches, the report provides policy guidance on effective policy packages, giving insights into possible actions for policy makers irrespective of the maturity of existing programmes.
-
Designing Energy Efficiency Policies to Enhance Affordability
…on designing energy efficiency policies that support affordability, particularly in the buildings sector.As part of this work, the IEA conducted a survey with G7 governments to better understand the obstacles they face. On the consumer side, major challenges include the landlord-tenant split incentive, high upfront costs and administrative complexity. On the supply side, governments identified skills shortages and difficulties in reaching underserved communities.The report analyses the affordability-focused energy efficiency policies of G7 countries. These include targeted financial support, simplified programme design, strong local delivery models, and better integration with workforce development. Embedding affordability into energy efficiency…
-
Renewables for Industry
…with increasing deployment of renewable electricity supply, can deliver multiple benefits. In addition to reducing fossil fuel use and associated emissions, it can improve energy security by lowering exposure to volatile gas and oil prices and, when integrated with thermal storage, it can create demand flexibility that helps ensure a higher share of variable renewable generation.This report explores how to expand the role of renewables in the industrial energy mix through electrification of low-temperature heat and steam. It focuses on the European Union, China and the Association of Southeast Asian Nations (ASEAN), examining their techno-economic potential and…
-
Global Energy Review 2025
…demand for electricity rising almost twice as fast as wider energy demand due to higher demand for cooling, rising consumption by industry, the electrification of transport and the growth of data centres and artificial intelligence. Nearly all of the rise in electricity demand was met by low-emissions sources, led by the record-breaking expansion of solar PV capacity, with further growth in other renewables and nuclear power. Gas demand also picked up substantially, while oil and coal consumption increased more slowly than in 2023.CO2 emissions from the energy sector continued to increase in 2024 but at a slower…
- Key findings
- Global trends
- Oil
- Natural gas
-
+ 3 pages
-
The State of Energy Innovation 2025
…milestones. It identifies areas where new approaches to policy support are being developed to use public funds more effectively, but also highlights areas where more efforts are needed to address barriers to scale-up and attract private capital. The report includes focus chapters on three dynamic fields, namely diversification of battery mineral supplies, application of artificial intelligence to energy innovation, and development of carbon dioxide removal technologies. The analysis provides a data-driven foundation to inform policy makers, industry and other stakeholders on the state of energy innovation worldwide and the importance of sustaining innovation momentum over the long term.
-
The Value of Demand Flexibility
Benefits beyond balancing This policy brief, developed under the International Energy Agency’s Digital Demand-Driven Electricity Networks (3DEN) Initiative, examines the value of demand flexibility as a core component of modern electricity systems, with a strong emphasis on its role in improving energy efficiency. As electricity demand grows and power systems become more electrified, decentralised and renewable-rich, managing when and how electricity is used is increasingly as important as expanding supply.The brief sets out a clear framework for understanding demand flexibility and highlights its contribution to an efficiency-first approach to power system planning and operation. By…
