Renewables overtake coal as world’s biggest source of electricity

Renewable energy, including nuclear power, jointly overtook coal as the world's leading source of electricity in the first half of this year – leading historically, according to new data from Global Energy Think Cank Ember.

Demand for electricity is increasing around the world, but the growth of solar and wind has been so strong that it has met 100% of the additional demand for electricity, even helping to offset declining use of coal and gas.

However, Amber says the headlines mask a mixed global picture.

Developing countries, especially China, have led the charge for clean energy, but richer countries, including the US and EU, have relied more than before on the planet's fossil fuels to generate electricity.

Coal, a major contributor to global warming, remains the world's largest individual source of energy generation, according to the International Energy Agency.

China remains far ahead in clean energy growth, adding more solar and wind capacity than the rest of the world combined. This allowed the growth of renewable generation in China to outpace rising electricity demand and helped reduce fossil fuel generation by 2%.

India has experienced slower electricity demand growth and has also added significant new solar and wind capacity, meaning it is also cutting back on coal and gas.

On the contrary, developed countries such as the US as well as the EU have seen the opposite trend.

In the US, electricity demand is growing faster than net energy output, increasing dependence on fossil fuels, while in the EU, months of weak wind and hydropower have boosted coal and gas output.

Despite these regional differences, Amber calls this moment a “decisive turning point.”

Ember Malgorzata senior analyst Wiatros-Motyka said it “marks the beginning of a shift where net strength keeps pace with demand growth.”

Solar energy provided the lion's share of the growth, accounting for 83% of the increase in electricity demand. It has now been the largest source of new electricity for three years in a row.

The majority of solar generations (58%) are now in low-income countries, many of which have seen explosive growth in recent years.

This is thanks to the impressive cost reduction. Since 1975, Solar has driven prices up 99.9% and is now so cheap that large markets for solar panels are emerging in the country within one year, especially where grid power is expensive and unreliable, Amber says.

Pakistan, for example, imported solar panels capable of generating 17 gigawatts (GW) of solar power in 2024, double the previous year and equivalent to about a third of the country's current output.

Africa is also experiencing a solar boom, with panel imports up 60% in the year to June. Coal-burning South Africa was passing, while Nigeria overtook Egypt into second place with 1.7GW of solar output – enough to meet the electricity demand of about 1.8 million homes in Europe.

Some smaller African countries saw even faster growth, with Algeria increasing imports 33 times, Zambia eight times and Botswana seven times.

In some countries, the growth of solar energy has been so rapid that it is creating unexpected problems.

In Afghanistan, widespread use of solar-powered water pumps is driving down the table, threatening long-term access to groundwater. Research by Dr David Mansfield and satellite firm Alcis Alcis Warns that some regions could dry out for five to ten years, threatening millions of livelihoods.

Adair Turner, chair of the UK Energy Transition Commission, says countries in the global sunbelt and windbelt face very different energy challenges.

The Sun Nations, including much of Asia, Africa and Latin America, require large amounts of electricity for daytime air conditioning. These countries can significantly reduce energy costs almost immediately by adopting solar systems backed by increasingly affordable batteries that store energy from day to night.

However, wind belt countries such as the UK face tougher hurdles. The cost of wind turbines has not gone down like solar panels have gone down in the last decade. Higher interest rates have also added to borrowing costs and significantly increased the overall installation price of wind farms over the past few years.

Balancing supplies is trickier too: winter winds can last for weeks, requiring backup power supplies that batteries alone cannot provide – making the system more expensive to build and run.

But no matter where you are in the world, China's overwhelming dominance of the pure tech industry remains reckless, other new data from Ember shows.

In August 2025, its net technology exports reached a record $20 billion, driven by growth in sales of electric vehicles (26%) and batteries (up 23%). Together, China's electric vehicles and batteries are now worth more than twice the value of its solar panel exports.