Renewables Surge Past Coal to Power the World’s Future Energy Boom!

Renewable energy has officially become the world's largest source of electricity, surpassing coal for the first time ever. This historic shift was revealed by new data from Ember, a global energy think tank. The demand for electricity is rising worldwide, but the growth in solar and wind power was so strong that it met all the extra demand, even causing a slight drop in coal and gas use. However, the situation is not the same everywhere. Developing countries, especially China, are leading the way in clean energy, while wealthier nations like the United States and those in the European Union are still relying more on fossil fuels.

China is making huge investments in solar and wind power, adding more capacity than the rest of the world combined. Even though China continues to build coal-fired power stations, its growth in renewable energy is outpacing the increase in electricity demand, which has helped reduce its use of fossil fuels by 2 percent. India is also making progress, with slower growth in electricity demand and significant new solar and wind installations, allowing it to cut back on coal and gas. In contrast, the United States and the EU have seen the opposite trend. In the US, electricity demand is growing faster than clean energy output, leading to more reliance on fossil fuels. In the EU, weak wind and hydropower performance has forced a rise in coal and gas generation.

The International Energy Agency (IEA) has lowered its forecast for renewable energy growth in the US, cutting its estimate for new capacity by half. This change is largely due to the policies of President Donald Trump's administration, which have slowed the transition to cleaner energy sources. The IEA's analysis highlights the different approaches of the US and China. While China is exporting more clean technology, such as electric vehicles and batteries, the US is focusing on selling oil and gas.

Solar power has been the largest source of new electricity for three years in a row. Most of the new solar generation is happening in lower-income countries, thanks to dramatic reductions in cost. Solar panel prices have dropped by 99. 9 percent since 1975, making it possible for countries to quickly build large solar markets. For example, Pakistan imported enough solar panels in 2024 to generate a third of its current electricity capacity. Africa is also seeing a solar boom, with panel imports up 60 percent in the past year. South Africa is leading the way, and Nigeria has moved into second place, with enough solar capacity to power 1. 8 million European homes. Smaller African nations like Algeria, Zambia, and Botswana are experiencing even faster growth.

The rapid expansion of solar power is creating new challenges in some places. In Afghanistan, widespread use of solar-powered water pumps is lowering the water table, which could threaten access to groundwater in the future.

Countries in sunny regions, known as the 'sun belt,' can reduce energy costs quickly by adopting solar-based systems, especially for daytime air conditioning. Affordable batteries are making it easier to store energy for use at night. However, countries in the 'wind belt,' like the UK, face tougher challenges. Wind turbine costs have not dropped as much as solar panels, and higher interest rates have made it more expensive to build wind farms. Balancing supply is also harder, as long periods without wind require backup power sources.

China's dominance in clean technology industries is clear. In August 2025, its clean tech exports reached a record $20 billion, driven by strong sales of electric vehicles and batteries. Together, these products are now worth more than twice the value of China's solar panel exports.

Despite regional differences, experts say this is a crucial turning point. Clean power is now keeping up with demand growth, and more countries are starting to use renewable energy. This is a positive development for the environment and for people around the world.