Geneva, October 7, 2025 — Renewable energy has officially surpassed coal as the world’s largest source of electricity, marking a historic shift in global energy production and a major milestone in the fight against climate change.
According to the latest report from the International Energy Agency (IEA), renewables including wind, solar, hydro, and geothermal now account for more than 40 percent of global electricity generation in 2025, overtaking coal for the first time in modern history. The achievement highlights both rapid technological progress and a sweeping transformation of energy markets around the world.
The surge in renewable output has been fueled by record investments in solar and wind infrastructure, falling production costs, and new government policies designed to cut carbon emissions. The IEA report shows that solar power alone grew by more than 26 percent in 2024, while wind generation expanded by 17 percent.
“This is a turning point,” said IEA Executive Director Fatih Birol. “Renewable energy is no longer a niche industry. It is now the backbone of the world’s electricity system.”
The shift away from coal has been especially strong in Europe and North America, where aging coal plants have been retired faster than expected. China and India, once seen as reluctant participants in the energy transition, have also accelerated clean energy investments driven by air quality concerns and the falling cost of renewables compared to fossil fuels.
China now leads the world in solar panel production and wind turbine manufacturing, with more than half of its new electricity capacity in 2025 coming from renewable sources. India has surpassed its renewable energy targets ahead of schedule, investing heavily in large-scale solar farms across Rajasthan and Gujarat.
In the United States, clean energy tax incentives under the Biden administration’s Inflation Reduction Act have fueled a rapid expansion of renewable projects. More than 300 gigawatts of new renewable capacity have come online since 2022, pushing coal generation to its lowest share of the energy mix in over a century.
Despite this milestone, experts warn that the transition is far from complete. Global demand for electricity continues to rise sharply due to population growth, the electrification of transport, and the expansion of artificial intelligence data centers that require massive energy supplies. This rising demand means fossil fuels still account for nearly half of global electricity production.
“Crossing this threshold is symbolic but not sufficient,” said Maria Gutierrez, a climate policy analyst with the World Resources Institute. “We need to double renewable capacity and phase out coal and gas quickly if we are to stay on track for the 1.5-degree climate goal.”
Coal remains a dominant source of power in parts of Asia and Eastern Europe, where economic and political challenges slow the shift to clean energy. Some developing nations also face obstacles in securing financing for renewable projects, despite increasing international support and climate funding initiatives.
Energy companies worldwide are now racing to seize opportunities in the new green economy. Global investments in renewables are expected to exceed two trillion dollars by 2026. Major oil and gas producers are diversifying into wind and solar projects to adapt to long-term shifts in global demand.
The IEA projects that by 2030, renewables could supply up to half of the world’s electricity if current growth continues. The trend signals a fundamental reordering of the global energy system and a decline in coal’s economic and geopolitical influence.
For millions of people, the clean energy transition also means reduced air pollution, lower electricity costs, and a more sustainable energy future. As Fatih Birol said, “The age of coal is ending. The age of clean power has begun.”
