Renewables Surpass Global Electricity Demand in 2025

Industry Insights from Next Move Strategy Consulting

In a transformative milestone for global energy, renewable sources, led by solar and wind, have outstripped the growth in electricity demand in 2025, achieving a historic first by generating more power than coal. This shift, detailed in a new report by energy think tank Ember, highlights the accelerating transition to sustainable energy systems worldwide.

A Turning Point for Clean Energy

During the first half of 2025, global solar power generation surged by an unprecedented 31%, while wind power grew by 7.7%, according to Ember’s analysis. Combined, these renewable sources contributed over 400 terawatt hours to the global grid, surpassing the increase in worldwide electricity demand. This milestone demonstrates that renewables, including solar, wind, hydropower, bioenergy, and geothermal, can meet rising energy needs without reliance on polluting fossil fuels.

“This marks a critical juncture,” said Malgorzata Wiatros-Motyka, senior electricity analyst at Ember and lead author of the report. “Solar and wind’s ability to outpace demand growth proves renewables can scale to meet global energy needs while reducing emissions.”

Key Highlights of the Renewable Surge

• Unprecedented Growth: Solar and wind generation added over 400 terawatt hours, exceeding global demand increases.

• Fossil Fuel Decline: Fossil fuel generation dropped by less than 1%, indicating a plateau in power sector emissions.

• Surpassing Coal: Renewables outgenerated coal for the first time, a pivotal step toward cleaner energy systems.

• Comprehensive Data: Ember’s analysis spans 88 countries, covering the majority of global electricity demand, driven by economic growth, electric vehicle, data centers, and rising cooling needs.

Regional Performance: Successes and Setbacks

Ember’s report examines key markets-China, India, the European Union, and the United States-which account for nearly two-thirds of global electricity production and power sector emissions.

• China’s Leadership: China added more solar and wind capacity than the rest of the world combined, reducing fossil fuel generation by 2% and lowering emissions.

• India’s Renewable Surge: India’s record solar and wind growth outpaced demand, reducing fossil fuel use and emissions.

• Challenges in the US and EU: The US saw demand outstrip clean energy growth, while the EU’s sluggish wind and hydropower output led to increased coal and gas use, raising emissions in both regions.

Impact on the Power Generation Market: Next Move Strategy Consulting’s View

The rapid expansion of renewables is reshaping the power generation market, driving a shift toward sustainable energy solutions. The ability of solar and wind to exceed demand growth signals a new era of investment in renewable infrastructure, energy storage, and grid enhancements to support variable energy sources. This transition presents opportunities for market stakeholders to prioritize scalable, cost-effective renewable technologies and policies that accelerate fossil fuel phase-outs. The modest decline in fossil fuel generation marks a critical turning point, with significant implications for energy security, cost competitiveness, and environmental sustainability.

Challenges in the US and EU

The report highlighted that not all major markets kept pace with the global trend. In the United States, growth in electricity demand outstripped the expansion of clean power. In the European Union, sluggish generation from wind and hydropower led to increased reliance on coal and gas. As a result, fossil fuel generation and emissions rose in both regions during this period.

A Global Path Forward

Despite regional challenges, the global outlook for renewables is promising. Amanda Smith, senior scientist at Project Drawdown, notes, “Renewables can displace fossil fuels even with growing demand. While I’m cautiously optimistic for the US, the global momentum is strong.” Continued investment in renewables offers a clear path to decarbonize the power sector and meet escalating energy needs sustainably.

Shaping a Sustainable Energy Future

The remarkable growth of solar and wind in 2025 signals a new era for global energy systems. By surpassing both electricity demand and coal generation, renewables are proving their capacity to drive a cleaner, more resilient future. As innovation and investment propel this transition, the energy sector is poised for a sustainable transformation.

Source: Business Standard

Prepared by: Next Move Strategy Consulting