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Record temperatures and extreme heat are no longer an exception - in the Mediterranean region, Southeast Asia, the American continent and Australia. A direct consequence: Air conditioning systems in households and production facilities consume more electricity than ever before. This calls for a clear response from energy policy.

The International Energy Agency (IEA) has confirmed: Global electricity consumption increased by 4.3 percent in 2024 - significantly more than the previous year’s 2.5 percent and the strongest growth in the past decade.1 For 2025, the IEA forecasts further growth of 3.3 percent, driven by electrification, climate control and the rapid expansion of AI data centres.2

 

Coal power provides cooling - CO₂ emissions continue to rise

The booming electricity market has a downside: Too often, energy is still generated in coal-fired power plants - including for air conditioning systems. This is particularly pronounced in the most populous growth markets: China’s electricity consumption increased by 7 percent in 2024, India’s by 5.8 percent.1 Global CO₂ emissions reached a new record level of 37.8 billion tonnes in 2024 - even though growth was lower than that of the economy.1

Demand for electricity remains strong. In addition to air conditioning systems, electric mobility, heat pumps and artificial intelligence are the central drivers - a development that makes the expansion of renewable energies more urgent than ever. 

Renewables overtake coal - a historic turning point

The good news is: The turning point has been reached. Renewables outperformed coal as the largest global power source for the first time in the first half of 2025 - earlier than expected by the IEA. Solar and wind power accounted for around 34% of global electricity generation, while coal fell to 33%.3 The IEA confirms: Renewables are expected to maintain their leading position permanently - by mid-2026 at the latest.2

Three levers for transformation

  • Massive expansion of renewable
    The World Climate Conference in Dubai in 2023 called for global green electricity capacity to be tripled by 2030. According to IRENA, this requires an annual investment of at least 1.4 trillion US dollars - more than twice as much as the 624 billion US dollars actually invested in 2024.4 This target is currently clearly being missed.  
  • Increased production efficiency
    In addition to expanding new capacities, significantly more efficient energy use is absolutely necessary - in buildings, industry and transport. Together, they are designed to prevent increasing cooling demand from destabilising energy systems.
  • Removing the nets
    High-performance transmission networks are a prerequisite for the safe and efficient distribution of renewable energy. klimaVest is therefore investing not only in wind and solar farms, but also in grid infrastructure since 2025 - via an indirect stake in the German transmission system operator Amprion. 

1IEA, Global Energy Review 2025 https://www.iea.org/reports/global-energy-review-2025/key-findings

2IEA, Electricity Mid-Year Update 2025 https://www.iea.org/reports/electricity-mid-year-update-2025/executive-summary

3Ember / World Economic Forum, Global Electricity Review H1 2025 https://www.weforum.org/stories/2025/10/renewables-overtake-coal-energy-news/

4IRENA, Delivering on the UAE Consensus, October 2025 https://www.irena.org/News/pressreleases/2025/Oct/World-Breaks-Renewable-Records-but-Must-Move-Faster-to-Hit-2030-Tripling-Goal