In this feature, global energy leaders explore why surging demand is reshaping the conversation from transition to energy addition, a strategy that balances rising consumption with the need for secure, sustainable and affordable systems.
Energy demand, particularly in the form of electricity, has reached unprecedented levels on the back of data centre growth, economic development, and the growing energy needs of a warming world, requiring an evolution of the energy transition to embrace a model of ‘energy addition’.
Global energy consumption surges ahead
In 2024, total primary energy consumption was estimated at around 14,500 million tonnes of oil equivalent (Mtoe) , far beyond the historical growth rate of 1.3% per year recorded in the decade preceding.
This rate of increased energy consumption is only expected to pick up even further pace in the coming years, as the demands for cooling, electric vehicles, artificial intelligence (AI) and industrialisation only grow. Data centres alone are projected to consume up to 10–15% of global electricity by the end of the decade.
These increased demands on energy supplies have resulted in estimates that global energy use could rise nearly 50% by 2050 compared to 2020 levels, primarily due to economic and population growth in non-OECD countries, according to the United States Energy Information Administration (EIA).
Transforming energy transition to energy addition
In order to continue to meet growing energy demand, and the progress it enables, government and industry leaders are embracing a new strategy – that of ‘energy addition’. At the recent edition of Gastech, which took place in Milan, Italy, this September, ‘energy addition’ in name or in sentiment was referenced by many attendees, most notable among them perhaps being United States Secretary of the Interior Doug Burgum.
“We're not energy transitioning. This is about energy addition. And let the US do that. We've got it, have all the reliable forms, which include nuclear, geothermal, community coal, residential gas, and hydroelectric; those are all resources,” he said in response to the meeting the challenges posed by the growing artificial intelligence (AI) sector and the US quest for AI dominance.
Contextualising this increased energy demand and the impact it has had on the energy transition’s goals of replacing hydrocarbons with renewable energy, Wood Mackenzie Chairman & Chief Analyst Simon Flowers said: “What's actually happened is that we've seen energy demand grow so quickly with rising population GDP and aspirations in developing economies that we just need more energy and that displacement is not really happening.”
New equation to meet decarbonisation and supply demand
Flowers clarified that this focus on adding energy does not negate the value of efforts to develop and integrate renewable energy sources, the need for which has only grown alongside energy demand.
“When you look at the numbers, the low-carbon energy isn't displacing, it's just complementing what's already there… So we're entering a period where there's going to be a lot of everything needed to meet demand,” said Simon Flowers, Wood Mackenzie Chairman & Chief Analyst.
This sentiment was shared by others in the energy sector, who emphasised the need for lower-carbon fuels like LNG and nuclear energy to continue to be used alongside renewable energy in order to jointly reduce emissions and meet growing energy demand.
Devan Pillay, Cluster President, Schneider Electric, said: “Digitalisation and AI are exponentially increasing power consumption. Gas, being a lower-carbon fossil fuel, has this opportunity to be an intermediary energy source whilst technologies like small modular reactors and more robust renewables become mainstream to support this energy glut.”
The need of the moment for the sector then is to balance growing global energy demand and preexisting decarbonisation requirements in order to enable sustainable global progress. Industry insiders say this requires a shift from a linear energy transition model to one that embraces diversification and scalability across all available low-carbon technologies. Policymakers and industry leaders must prioritise infrastructure investment, regulatory reform, and innovation to support both increased supply and reduced emissions. A more inclusive energy mix will be essential to meeting demand while maintaining momentum toward climate goals.
Fabricio Sousa, Global President at Worely Consulting, said: “I think the transition is still there, it's still needed, and the direction hasn't changed before. The question now…how do we accelerate energy addition, and how do we do it in the most economical, faster, reliable and sustainable form.”
As energy consumption continues to grow, particularly in developing economies and high-demand sectors, a diversified energy mix is being pursued to maintain reliability and affordability. The integration of renewables, nuclear, and lower-carbon fuels is seen as necessary to meet both climate objectives and economic development goals. Industry leaders and policymakers are now focused on accelerating this expansion in a way that aligns with sustainability, cost-effectiveness, and energy security.