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The Value of Demand Flexibility Executive summary
With global electricity demand rising and set to add around 1 000 TWh each year until 2035, new ways of managing the balance between supply and demand are needed. Demand flexibility – the ability to adjust the timing or amount of electricity use in response to system needs – is central to help achieve this balance. Advances in digitalisation, including the growing use of AI tools, are further enhancing the ability to deploy flexibility effectively.This policy brief, part of the 3DEN Initiative, presents a concise framework for understanding demand flexibility and its value across the energy system, highlighting that it can:Enhance power…
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Asset values
Multiple benefits of Energy Efficiency 2025 Energy efficiency provides multiple benefits. This page explores asset values. Why is energy efficiency important for asset values? Energy efficiency can increase the value of assets, such as homes, buildings or equipment, and lead to lower vacancy rates and longer equipment lifespans. Key facts Energy efficient buildings can command a premium on sale and rental price in both the residential and commercial sectors. Studies show that sale price premiums for energy efficient buildings range from 3% to 15% in residential buildings and 13 to 20% in commercial buildings. Key analysis Studies show that individuals…
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Gas Market Lessons from the 2022-2023 Energy Crisis Anatomy of a natural gas crisis
Sudden and drastic reduction in Russian pipeline gas deliveries to Europe In the run-up to the gas supply shock, Russian natural gas (pipeline and LNG combined) accounted for a growing share of European gas supply. Prior to 2010, Russian supply made up a relatively steady 30% of the European Union’s gas supply. However, the combination of plateauing demand and rapid decline in EU domestic production, which started in the early 2010s (linked to the decision to phase out the historical Groningen gas field in the Netherlands), led to growing dependency on gas imports across the European Union. The…
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Key Questions on Energy and AI
Following the publication of the IEA’s landmark Energy and AI report in 2025, this report examines how the energy and AI nexus has evolved amid surging investment in data centres and rapid advances in model capabilities. Drawing on fresh datasets and analysis, it explores where electricity demand is rising, how quickly grids and supply chains can respond, and what these shifts mean for energy security, affordability and sustainability.
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Sheltering From Oil Shocks Air transport fuels
Jet fuel demand accounts for around 7% of global oil demand. Jet fuel markets look to be particularly vulnerable to an extended loss of Middle East production and exports, given limited flexibility elsewhere to increase output. 8. Avoid air travel where alternative options exist Description: Travel for work accounts for a large share (between 20% and 40%) of aviation activity. In many cases, travel for work can be temporarily substituted by virtual meetings. A reduction of around 40% of flights taken for work purposes is feasible in the short term, while maintaining productivity.Impact: Very high voluntary participation to work…
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Renewables 2025 Executive summary
Renewables’ global growth, driven by solar PV, remains strong amid rising headwinds Global renewable power capacity is expected to double between now and 2030, increasing by 4 600 gigawatts (GW). This is roughly the equivalent of adding China, the European Union and Japan’s power generation capacity combined to the global energy mix. Solar PV accounts for almost 80% of the global increase, followed by wind, hydropower, bioenergy and geothermal. In more than 80% of countries worldwide, renewable power capacity is set to grow faster between 2025 and 2030 than it did over the previous five-year period. However, challenges including…
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Global EV Outlook 2025 Trends in the electric car industry
Manufacturing and trade Steady growth in global electric car production masks differences at the regional level A total 17.3 million electric cars were produced worldwide in 2024, about one-quarter more than in 2023, largely as a result of increased production in China, which reached 12.4 million electric cars. China remains the world’s electric car manufacturing hub, accounting for more than 70% of global production in 2024. Production in China has been increasingly shaped by the expansion of domestic manufacturers. In 2024, Chinese OEMs accounted for more than 80% of domestic production, up from roughly two-thirds in 2021…
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Clean Energy Technology Supply Chain Data Executive summary
Energy security in the Age of Electricity is inextricably linked to securing the supply chains for clean energy technologies and the equipment and materials used to manufacture them. As countries continue to pursue energy transitions and make investments in the deployment and manufacturing of these technologies – guided by industrial strategies – a detailed understanding of their supply chains has an essential role to play.The availability of good-quality, timely data is crucial to understanding clean energy technology supply chains and addressing vulnerabilities. Risks to supply chains can arise from interdependencies across technologies and between geographies, among other factors. Today, the…
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Energy Efficiency Policy Toolkit Financing Energy Efficiency
Global energy investment continues to grow despite a challenging geopolitical environment. According to the IEA’s World Energy Investment 2026 report, total spending is expected to reach USD 3.4 trillion in 2026, a 5% increase from 2025. Clean energy investment is projected to remain around USD 2.2 trillion, representing nearly two‑thirds of total energy spending and continuing to outpace fossil fuels. Investment in electricity systems such as grids, storage, and electrification, is increasingly driven by energy security concerns and rising electricity demand. Energy efficiency also remains essential to strengthening system resilience, reducing costs for consumers and businesses, and lowering greenhouse gas emissions…
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Global Energy and Climate Model Announced Pledges Scenario (APS)
The 2025 edition of the World Energy Outlook (WEO) does not include the Announced Pledges Scenario. Our assessment of the new round of NDCs due this year, generally the period to 2035, will follow once there is a more complete picture of these pledges.The Announced Pledges Scenario (APS), introduced in 2021, illustrates the extent to which announced ambitions and targets can deliver the emissions reductions needed to achieve net zero emissions by 2050. In the WEO-2024, the APS includes all recent major national announcements as of the end of August 2024, both 2030 targets and longer-term net zero…
