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Global Energy and Climate Model Understanding GEC Model scenarios
Overview The IEA’s medium- to long-term outlook publications – including the World Energy Outlook (WEO) and Energy Technology Perspectives (ETP) – use a scenario approach relying on the Global Energy and Climate (GEC) Model to examine future energy trends.Each scenario has the same starting point and is based on the latest data for energy supply and demand, markets, technology costs and policies, as well as the same pathways for future population and economic growth.The energy system described and explored in each scenario evolves in a distinctive pathway that delivers energy services with a different mix of technologies and…
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Electricity Mid-Year Update 2025 Executive summary
Global electricity demand on course to expand robustly in 2025 and 2026 despite economic headwinds Global power demand is expected to rise much faster over the forecast 2025‑2026 period than it did during the past decade. While slower than the 4.4% surge in 2024, growth forecasts of 3.3% for 2025 and 3.7% for 2026 remain among the highest rates observed in the past decade and well above the 2015-2023 average of 2.6%. Despite a slowdown in economic activity, which has weighed on global electricity use so far in 2025, heatwaves continue to add to demand…
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Sheltering From Oil Shocks Oil use in industry
Industry accounts for around 20% of global oil demand. Two-thirds of industrial oil demand is used as feedstock in the chemicals industry. There are options that can bring down oil demand in industry, and some flexibility on which oil products are used as petrochemical feedstocks. 10. Leverage flexibility with petrochemical feedstocks and implement short-term efficiency and maintenance measures Description: The majority of petrochemical production capacity in Asia and the European Union can technically switch between different oil products – such as LPG, naphtha, ethane or gasoil – as a feedstock without requiring equipment modifications. Prioritising the processing of oil feedstocks…
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Ensuring a Strong Labour Dimension for Just and Inclusive Energy Transitions Just and Inclusive Energy Transitions
Workers play a critical role in the global energy system, providing key services across many areas of the energy sector. To give a greater voice to the labour perspective in energy and climate policy discussions, the IEA Executive Director convened the Clean Energy Labour Council in 2022. The Labour Council is made up of representatives of the world’s most important national trade unions and trade union confederations, as well as prominent thinkers on the topic, to foster engagement between the IEA, energy policy makers, and the labour movement.One of the main topics for the IEA Clean Energy Labour…
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Ramping up Heat Pumps in Moldova: A Roadmap Building the market
This chapter focuses on driving consumer and industrial demand for heat pumps while building a base of manufacturers and installers. It discusses energy pricing, including taxes and levies on electricity and gas, carbon pricing and other types of instruments to encourage the deployment of heat pumps in Moldova. Communication A main barrier identified during stakeholder consultations for this study was a lack of consumer knowledge and experience with heat pumps. This is an issue that should be addressed upfront, as it can result in uncertainty about the operation of heat pumps and spreading of misinformation about their applications or limits…
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World Energy Outlook 2022 Outlook for gaseous fuels
Global demand for natural gas held up better than demand for other fossil fuels during the first year of the Covid-19 pandemic, and then increased by 5% in 2021, double its average growth rate over the past decade. A dearth of new projects, weather-related increases in demand, LNG outages and reduced Russian exports tightened the global gas supply balance from mid-2021 and put upward pressure on prices, especially in Europe where the Title Transfer Facility (TTF) benchmark rose from less than USD 10 per million British thermal units (MBtu) in the first-half of 2021 to over 30 USD…
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Gaining an Edge Unlocking the potential of energy efficiency
Efficiency opportunities at the firm level At the firm level, energy efficiency offers untapped opportunities to reduce costs in both light and heavy industries In a competitive environment, firms are seeking to reduce costs, support sustainable growth and meet dynamic market demands. Energy is an important component of production costs in many industrial sectors, although its share varies by industry. These differences are influenced by the type and complexity of production. Heavy industries, such as steel, cement and chemicals, tend to be more energy intensive due to the large-scale processes and high thermal demands. Light industries, such as electronics…
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Global EV Outlook 2025 Electric vehicle batteries
Trends in battery demand Global battery demand for the energy sector hit the 1 TWh milestone in 2024 Electric cars remain the main driver of battery demand, but demand for trucks nearly doubledBattery demand in the energy sector, for both EV batteries and storage applications, reached the historical milestone of 1 TWh in 2024. Demand for one average week alone in 2024 exceeded the total demand for an entire year just a decade earlier. Demand was largely driven by growth in EV sales, as demand for EV batteries grew to over 950 GWh – 25% more than in 2023. Electric cars remain the…
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Outlook for Biogas and Biomethane Key findings
Biogases are a hidden solution to many of today’s energy security and sustainability challenges. They turn waste into sustainable, low-emissions fuels. The attraction of biogases lies in the integration of energy, environment, waste and emissions policies and targets. Biogas can be used directly as heat by households and industry, and to produce electricity. Biomethane, which is an upgraded form of biogas, is a locally sourced, drop-in substitute for natural gas. This report assesses the global potential and costs of developing biogas and biomethane using a first-of-a-kind geospatial analysis. It provides detailed country- and region…
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Renewables for Industry Executive summary
Electrification of heat can improve efficiency, help diversify industrial energy, and enhance energy security A broad range of industries that depend primarily on low-temperature heat and steam processes represent roughly 70% of global industrial energy consumption. They span diverse manufacturing activities – from food and beverages to textiles, chemicals, transport equipment, wood products and paper. In 2023, these sectors emitted nearly 3 Gt of direct energy-related CO₂, accounting for half of all direct industrial emissions, although emissions have declined by around 8% since 2013.Industrial energy use is largely in the form of heat and is increasingly being supplied…
