Global electricity demand rose by 2.6 per cent in the first half of 2025, yet growth in solar and wind generation exceeded all new demand, signalling a historic turning point for the power sector. For the first time on record, renewables overtook coal, preventing a further rise in carbon emissions and indicating that global fossil fuel demand is approaching its peak, according to Ember Energy’s latest report.
In India, the clean energy surge was striking. Electricity demand rose only modestly by 1.3 per cent (+12 TWh), helped by milder weather and fewer heatwaves. At the same time, solar and wind generation grew at record levels. Solar output increased by 17 TWh (+25 per cent), raising its share of the national mix to 9.2 per cent, while wind added 11 TWh (+29 per cent), reaching 5.1 per cent.
Hydro and nuclear also contributed to low-carbon power, while coal and gas output fell, cutting India’s power sector emissions by 24 MtCO₂ compared with last year. Ember notes that clean energy in India grew more than three times faster than electricity demand, highlighting the country’s progress in decarbonising its power system.
“Solar and wind are now growing fast enough to meet the world's growing appetite for electricity. This marks the beginning of a shift where clean power is keeping pace with demand growth. As costs of technologies continue to fall, now is the perfect moment to embrace the economic, social and health benefits that come with increased solar, wind and batteries,” said Małgorzata Wiatros-Motyka, Senior Electricity Analyst at Ember Energy.
The Global Scenario
The broader global picture was mixed. China led the global clean energy expansion, with fossil generation falling as solar and wind growth outpaced demand. By contrast, the United States saw a rise in fossil generation as clean sources lagged behind the growth in electricity demand.
In the European Union, gains in solar were partly offset by declines in wind, hydro and bioenergy, causing a slight increase in coal and gas use. Collectively, China, India, the EU and the US accounted for nearly two-thirds of global electricity demand and CO₂ emissions in H1‑2025, highlighting the outsized influence of these four economies on the global energy transition.
“Solar and wind are no longer marginal technologies; they are driving the global power system forward. The fact that renewables have overtaken coal for the first time marks a historic shift. But to lock in this progress, governments and industry must accelerate investment in solar, wind, and battery storage, ensuring that clean, affordable, and reliable electricity reaches communities everywhere,” said Sonia Dunlop, CEO of the Global Solar Council.
The report suggests that falling prices of solar and wind, combined with record deployment, provide governments with an opportunity to accelerate the clean energy transition. Yet some developing economies still face higher capital costs and capacity constraints. Support from developed economies, particularly those with historic emissions, will be crucial to keeping the pathway to net-zero within reach.
Thus, H1‑2025 signals a pivotal moment, renewables can meet rising energy demand, fossil fuel demand is plateauing in many regions and coordinated action can keep net-zero ambitions within grasp. |
