2025 Marks a Turning Point: Renewables Overtake Fossil Fuels in Global Electricity Generation

Renewables Surpass Fossil Fuels in 2025, IEA and Ember Reports Confirm

The war between the United States, Israel, and Iran has sent shockwaves through global energy markets, disrupting 20% of the world’s oil and liquefied natural gas supply. While the long-term climate implications remain uncertain, two new reports from the International Energy Agency (IEA) and the think tank Ember provide the clearest snapshot yet of the energy landscape before the conflict drove oil prices higher.

According to these analyses, the world is entering an “age of electricity”, where traditional fossil fuel-dependent activities—such as transportation, heating, and industrial processes—are increasingly powered by electricity. Crucially, a growing share of that electricity now comes from renewable sources.

2025: A Banner Year for Renewable Energy

Both reports confirm that 2025 was a landmark year for clean energy. Solar power emerged as the single largest source of electricity generation, while new power from carbon-free sources—including wind, nuclear, and hydropower—exceeded the overall rise in electricity demand. This means renewables began displacing fossil fuels at an unprecedented rate.

“This was a year when the economy boomed, electricity demand grew very healthily—and still all that demand growth was met with renewables.”

In 2025, renewables edged out coal in global electricity generation for the first time in over a century. This shift was driven largely by China and India, which together account for 42% of global fossil power generation. Both nations saw fossil fuel-generated electricity decline for the first time this century, as they rapidly expanded solar, wind, and battery infrastructure.

Falling Costs Fuel the Transition

The Ember report highlights another key milestone: the plateau in fossil fuel use in 2025 was not tied to economic recession. Global economic growth remained stable, signaling that renewable energy is driving a structural shift away from fossil fuels.

Cost reductions played a major role in this transition. The price of batteries fell by 45% in 2025, a steeper decline than the 20% drop observed in 2024, making renewable energy more accessible and affordable.

What This Means for the Climate Fight

The findings suggest that the energy transition, once a theoretical goal, is now gaining tangible momentum. If current trends continue, renewables could permanently reduce reliance on fossil fuels, even as global energy demand rises.

While geopolitical conflicts like the U.S.-Israel-Iran war pose short-term risks to energy markets, the long-term trajectory appears increasingly clear: electricity is the future, and renewables are leading the way.