For the first time in history, renewable energy has overtaken coal as the world's largest source of electricity, according to new data from the global energy think tank Ember.
Despite rising electricity consumption worldwide, the rapid expansion of solar and wind energy met 100% of the additional global demand, even driving a small decline in coal and gas generation. Ember called this moment a "crucial turning point," signaling that renewable energy is now keeping pace with growing demand for the first time.
However, the report also paints a divided global picture. Developing nations led by China and India are spearheading the clean energy surge, while many wealthier countries, including the United States and members of the European Union, have seen a partial return to fossil fuels.
In China, the world's clean energy powerhouse, solar and wind capacity grew faster than electricity demand, allowing the country to reduce fossil fuel use by 2%. China added more renewable capacity than the rest of the world combined and continues to dominate solar and battery manufacturing. India followed a similar path, adding significant solar and wind capacity while moderating its reliance on coal and gas.
In contrast, the US and EU saw a renewed dependence on fossil fuels. In the US, electricity demand outpaced clean energy growth, while Europe suffered from months of weak wind and hydropower output, forcing a short-term uptick in coal and gas use.
A separate report by the International Energy Agency (IEA) warns that renewable growth in the US is likely to slow sharply under the policies of President Donald Trump's administration. The IEA has halved its forecast for American renewable capacity additions this decade from 500 gigawatts (GW) to just 250GW by 2030 -- underscoring a widening policy divide between the US and China.
Despite these contrasts, solar power remains the driving force of the global energy transition. It accounted for 83% of the world's increase in electricity generation in early 2025 and has been the leading source of new power capacity for three consecutive years. Strikingly, 58% of all solar generation now comes from lower-income countries, reflecting both rapid adoption and the dramatic fall in solar costs -- down 99.9% since 1975.
Emerging markets are leading this transformation. In 2024, Pakistan imported solar panels capable of generating 17GW of power double the previous year's total while African nations experienced explosive growth in solar adoption. South Africa led the continent's solar surge, followed by Nigeria, which overtook Egypt to become the region's second-largest solar market. Smaller countries such as Algeria, Zambia, and Botswana recorded exponential increases in solar imports, some by more than thirtyfold.
But the solar boom has not been without challenges. In Afghanistan, for example, widespread use of solar-powered water pumps has caused water tables to drop, raising concerns about long-term groundwater depletion. Experts warn that some regions could face severe water shortages within a decade if usage continues unchecked.
Energy analysts say the world is now entering an era defined by regional differences in clean energy development. "Sun belt" countries across Asia, Africa, and Latin America benefit from abundant sunlight and can meet daytime energy demand through solar power, aided by cheaper battery storage. Meanwhile, "wind belt" nations such as the UK face greater hurdles due to slower cost declines in wind technology and the need for costly backup power during extended wind lulls.
Regardless of these challenges, China's clean tech dominance continues to grow. New Ember data shows that China's clean technology exports hit a record $20 billion in August 2025, driven by surging demand for electric vehicles and batteries. Together, these exports now exceed the total value of China's solar panel sales, reinforcing its position at the center of the global clean energy revolution.
According to Ember senior analyst Malgorzata Wiatros-Motyka, this historic shift "marks the beginning of a new era where clean power is keeping pace with demand growth."