Global energy demand rose by 2.2% in 2024, according to the latest International Energy Agency (IEA) report – well above the decade average. Electricity use surged worldwide, reversing years of declines in advanced economies.

For small and medium-sized enterprises (SMEs), these global shifts have a direct impact on costs, competitiveness, and sustainability planning.

Why Did Demand Rise So Fast?

• Record Temperatures – More cooling demand during heatwaves in countries across the globe.

• Electrification – More EVs, electric heating, and industrial processes are shifting away from fossil fuels.

• Data Growth – AI, data centres, and digital services are adding to electricity consumption.

• Industry & Transport – Manufacturing recovery and EV charging are increasing the load.

The Key Stats from 2024

• Electricity use up 4.3% globally – nearly double the past decade’s growth rate.

• Renewables & nuclear provided 80% of the increase in electricity generation.

• Oil demand share fell below 30% for the first time in history.

• Natural gas demand up 2.7%, the fastest growth among fossil fuels.

• Coal demand growth halved compared to 2023.

• CO₂ emissions up just 0.8%, showing progress in decoupling emissions from growth.

Why This Matters for UK SMEs

1. Energy Prices Stay in Flux – Even with renewable growth, higher demand puts upward pressure on costs.

2. More Regulation & Incentives – Governments are tightening efficiency requirements while expanding green incentives.

3. Competitive Advantage for Early Movers – Businesses that adopt low-carbon solutions now are future-proofing.

4. Sustainability is a Sales Tool – Customers increasingly choose suppliers with credible green credentials.

Practical Steps SMEs Can Take Now

• Track & Manage Usage – Use smart meters and energy portals to spot waste and shift use to cheaper times.

• Consider a Green Tariff – Match your usage with renewable generation, boosting sustainability credentials.

• Electrify Where Sensible – Swap outdated heating or transport solutions for efficient electric alternatives.

• Tap Into Government Support – Check for grants and tax incentives for energy efficiency upgrades.

• Promote Your Green Story – Communicate your sustainability efforts to attract eco-conscious customers.

Final Thought

The world’s energy mix is changing fast, and SMEs who act now will be the ones benefiting from lower costs, greater resilience, and a stronger market position.

Want to explore how your business can prepare for the future of energy? Get in touch with PE – where we make smarter, greener energy possible for UK SMEs.