Renewable energy, primarily solar, surpassed coal as the world's leading electricity source in H1, meeting all new demand and slightly reducing fossil fuel use, marking a critical inflection point in the global energy transition. This growth is predominantly led by developing nations like China, which also dominates clean tech exports, while developed economies such as the US are increasing fossil fuel reliance, prompting the IEA to halve its US renewable growth forecast. The divergence underscores significant regional investment opportunities and risks, with solar's dramatic cost reduction driving rapid adoption in emerging markets, contrasting with persistent cost challenges for wind power in developed nations.
Renewables overtake coal as world's biggest source of electricity Renewable energy overtook coal as the world's leading source of electricity in the first half of this year - a historic first, according to new data from the global energy think tank Ember. Electricity demand is growing around the world but the growth in solar and wind was so strong it met 100% of the extra electricity demand, even helping drive a slight decline in coal and gas use. However, Ember says the headlines mask a mixed global picture. Developing countries, especially China, led the clean energy charge but richer nations including the US and EU relied more than before on planet-warming fossil fuels for electricity generation. This divide is likely to get more pronounced, according to a separate report from the International Energy Agency (IEA). It predicts renewables will grow much less strongly than forecast in the US as a result of the policies of President Donald Trump's administration. Coal, a major contributor to global warming, was still the world's largest individual source of energy generation in 2024, a position it has held for more than 50 years, according to the IEA. China remains way ahead in clean energy growth, adding more solar and wind capacity than the rest of the world combined. This enabled the growth in renewable generation in China to outpace rising electricity demand and helped reduce its fossil fuel generation by 2%. India experienced slower electricity demand growth and also added significant new solar and wind capacity, meaning it too cut back on coal and gas. In contrast, developed nations like the US, and also the EU, saw the opposite trend. In the US, electricity demand grew faster than clean energy output, increasing reliance on fossil fuels, while in the EU, months of weak wind and hydropower performance led to a rise in coal and gas generation. In a separate report the IEA has halved its forecast for the growth of renewable energy in the US this decade. Last year, the agency predicted the US would add 500GW of new renewable capacity – mostly from solar and wind – by 2030. That has been cut that back to 250GW. The IEA analysis represents the most thorough assessment to date of the impact the Trump administration's policies are having on global efforts to transition to cleaner energy sources and underscores the dramatically different approach of the US and China. As China's clean tech exports surge, the US is focusing on encouraging the world buy more of its oil and gas. 'Crucial' turning point Despite these regional differences, Ember calls this moment a "crucial turning point". Ember senior analyst Malgorzata Wiatros-Motyka said it "marks the beginning of a shift where clean power is keeping pace with demand growth". Solar power delivered the lion's share of growth, meeting 83% of the increase in electricity demand. It has now been the largest source of new electricity globally for three years in a row. Most solar generation (58%) is now in lower-income countries, many of which have seen explosive growth in recent years. That's thanks to spectacular reductions in cost. Solar has seen prices fall a staggering 99.9% since 1975 and is now so cheap that large markets for solar can emerge in a country in the space of a single year, especially where grid electricity is expensive and unreliable, says Ember. Pakistan, for example, imported solar panels capable of generating 17 gigawatts (GW) of solar power in 2024, double the previous year and the equivalent of roughly a third of the country's current electricity generation capacity. Africa is also experiencing a solar boom with panel imports up 60% year on year, in the year to June. Coal-heavy South Africa led the way, while Nigeria overtook Egypt into second place with 1.7GW of solar generating capacity - that's enough to meet the electricity demand of roughly 1.8m homes in Europe. Some smaller African nations have seen even more rapid growth with Algeria increasing imports 33-fold, Zambia eightfold and Botswana sevenfold. In some countries the growth of solar has been so rapid it is creating unexpected challenges. In Afghanistan, widespread use of solar-powered water pumps is lowering the water table, threatening long-term access to groundwater. A study by Dr David Mansfield and satellite data firm Alcis warns that some regions could run dry within five to ten years, endangering millions of livelihoods. Adair Turner, chair of the UK's Energy Transitions Commission, says countries in the global "sun belt" and "wind belt" face very different energy challenges. Sun belt nations - including much of Asia, Africa, and Latin America - need large amounts of electricity for daytime air conditioning. These countries can significantly reduce energy costs almost immediately by adopting solar-based systems, supported by increasingly affordable batteries that store energy from day to night. Wind belt countries like the UK face tougher obstacles, however. Wind turbine costs have not come down by anything like as much as solar panels - down just a third or so in the last decade. Higher interest rates have also added to borrowing costs and raised the overall price of installing wind farms significantly in the last few years. Balancing supply is harder too: winter wind lulls can last for weeks, requiring backup power sources that batteries alone can't provide - making the system more expensive to build and run. But wherever you are in the world, China's overwhelming dominance in clean tech industries remains unchallenged, other new data from Ember shows. In August 2025, its clean tech exports hit a record $20bn, driven by surging sales of electric vehicles (up 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. Sign up for our Future Earth newsletter to get exclusive insight on the latest climate and environment news from the BBC's Climate Editor Justin Rowlatt, delivered to your inbox every week. Outside the UK? Sign up to our international newsletter here. Renewable energy, primarily solar and wind, achieved a historic milestone in H1 by surpassing coal as the world's leading electricity source, meeting all new demand and initiating a slight decline in fossil fuel consumption. This represents a "crucial turning point" where clean power growth is now pacing demand, according to Ember analysts. However, the transition exhibits significant regional disparities. While developing nations like China and India reduced fossil fuel generation, developed economies such as the US and EU increased reliance on traditional sources due to policy shifts or weaker clean energy output. The IEA notably halved its US renewable growth forecast to 250GW by 2030, attributing this to specific administrative policies. Solar power is the principal driver of this global shift, underpinned by a staggering 99.9% cost reduction since 1975, making it the largest source of new electricity for three consecutive years. China continues to dominate, adding more solar and wind capacity than the rest of the world combined and experiencing surging clean tech exports valued at a record $20bn in August 2025. In contrast, wind power faces persistent cost challenges, with only a one-third reduction in turbine costs over the last decade and increased borrowing costs from higher interest rates. This divergence highlights distinct investment landscapes, with solar's affordability driving rapid adoption in emerging "sun belt" markets, while "wind belt" nations encounter greater hurdles in their transition.
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