NextFin news, Renewable energy generation worldwide surpassed coal-fired electricity production for the first time on record during the first half of 2025, according to data analyzed by multiple energy research organizations including Ember and the International Energy Agency (IEA).
This historic shift was driven primarily by rapid expansion in solar photovoltaic (PV) and wind power capacity, which outpaced the growth in global electricity demand. Solar and wind combined are expected to account for 17% of global electricity generation in 2025, up from 15% in 2024, and are projected to reach nearly 20% by 2026.
The milestone was reached despite a complex global energy landscape, with coal-fired generation declining in major markets such as China and India, while it rose modestly in the United States and the European Union during the first half of the year. Overall, coal's share in total electricity generation is forecast to drop below 33% for the first time in a century.
The International Energy Agency's midyear update report highlights that global electricity demand continues to grow robustly, driven by industrial activity, increased use of appliances, cooling needs, data centers, and electrification efforts. Despite this, renewables, along with nuclear and natural gas, are meeting the majority of new electricity demand.
China and India remain key players in this transition. China alone accounted for 50% of global electricity demand growth in 2024 and is expected to continue leading demand increases, although at a moderated pace in 2025. India is also forecast to see strong electricity demand growth, supported by expanding renewable capacity and nuclear power development.
In the United States, electricity demand is rising faster than in previous years, fueled by the expansion of data centers and electrification of transport and heating. However, the U.S. has seen a temporary increase in coal-fired generation in early 2025 due to higher natural gas prices prompting gas-to-coal switching.
Europe's electricity demand is recovering modestly, with renewables growing but facing challenges from lower wind and hydropower output in some regions, leading to increased reliance on gas and coal in the short term. Nonetheless, coal-fired generation in the EU is forecast to decline significantly by 2026.
Global nuclear power generation is also on track to reach record highs in 2025 and 2026, supported by reactor restarts and new plant commissions in countries including Japan, China, India, Korea, the United States, and France.
Carbon dioxide emissions from electricity generation are expected to plateau in 2025 and decline slightly in 2026, as the growth of low-emission sources displaces fossil fuel generation. This trend is particularly influenced by developments in China, which accounts for more than half of the world's coal-fired power generation.
Wholesale electricity prices have risen in several regions, including Europe and the United States, due to higher natural gas prices and weather-related factors, while prices have fallen in countries like India and Australia. Negative electricity prices have become more common in European markets, reflecting the increasing share of variable renewable energy and the need for greater grid flexibility.
Experts view this milestone as a crucial turning point in the global energy transition, signaling the accelerating shift away from fossil fuels towards cleaner energy sources. Continued investment in renewable capacity, grid infrastructure, and supportive policies will be essential to sustain this momentum and meet growing electricity demand sustainably.
Sources: The Guardian (Oct 7, 2025), International Energy Agency Electricity Mid-Year Update 2025, Ember Global Energy Research, The Independent (Oct 7, 2025).
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