Global Energy Turning Point

For the first time in modern history, renewable energy generated more global electricity than coal during the first half of 2025.

Driven largely by rapid solar and wind growth, renewable generation was strong enough not only to meet rising electricity demand, but also to slightly reduce fossil fuel generation overall.

While coal remained the world’s largest annual electricity source in 2024, its dominance continues to decline as global renewable energy capacity accelerates.

According to international energy analysis from organisations including the International Energy Agency (IEA) and Ember, the first half of 2025 may ultimately be remembered as a major turning point in the global energy transition.

Solar & Wind Are Driving the Shift

Solar energy has become one of the fastest-growing electricity sources in history.

In the first half of 2025, solar reportedly supplied approximately 83% of all new global electricity demand growth.

Rapid cost reductions have played a major role in this acceleration, with solar panel prices declining dramatically over recent decades as technology, manufacturing and global investment continue scaling.

Wind energy also continues expanding globally, particularly across large-scale renewable infrastructure projects and offshore developments.

Together, solar and wind are increasingly reshaping how nations generate electricity, invest in infrastructure and plan future energy systems.

China & India Lead Renewable Growth

China remains the dominant force behind global renewable energy expansion.

Recent reports indicate China added more solar and wind capacity than the rest of the world combined, while also reducing fossil fuel generation as renewable deployment accelerated.

India is also rapidly increasing renewable generation capacity, with clean energy growth reportedly outpacing electricity demand growth across parts of the country.

These shifts highlight how emerging and rapidly industrialising economies are increasingly becoming central drivers of the global energy transition.

Emerging Markets Are Accelerating

Some of the most significant renewable growth stories are now emerging outside traditional Western markets.

Pakistan reportedly imported enough solar panels in 2024 to generate approximately 17 GW of electricity — more than double the previous year.

Across Africa, solar imports also surged significantly during 2025, reflecting growing demand for:
• distributed solar
• rooftop systems
• commercial energy resilience
• off-grid solutions
• energy affordability

Countries across emerging markets are increasingly turning to solar as both an economic and energy security strategy.

China’s Expanding Clean-Tech Influence

China’s role in the global energy transition now extends well beyond solar manufacturing alone.

Electric vehicles, battery storage systems, and broader clean-tech exports continue to strengthen China’s position in future energy supply chains and infrastructure markets.

As countries compete for clean manufacturing capability, battery technology and renewable infrastructure investment, global energy transitions are increasingly becoming intertwined with trade, industry policy and geopolitical strategy.

Challenges Still Remain

Despite rapid renewable growth, major challenges continue shaping the transition.

Grid Infrastructure

Renewable energy expansion requires:
• transmission infrastructure
• grid modernisation
• storage systems
• interconnectors
• long-term planning

Without major investment in electricity networks, renewable generation cannot be effectively integrated at scale.

Wind & Storage Challenges

While solar costs have declined rapidly, wind development and long-duration energy storage continue facing:
• financing pressures
• supply chain constraints
• permitting delays
• infrastructure bottlenecks

Seasonal generation variability also means storage, firming technologies and diversified energy systems remain critical.

Policy & Approvals

The future pace of renewable growth will increasingly depend on:
• government policy
• approvals frameworks
• investment certainty
• planning reform
• social licence
• regional engagement

Technology alone is no longer the main barrier.

Infrastructure delivery, regulation and community trust are becoming equally important.

Why This Matters

The global energy system is undergoing one of the most significant industrial transitions in modern history.

As renewable energy capacity expands, communities, governments and industry may increasingly experience:
• lower-cost renewable generation
• greater energy diversification
• evolving electricity pricing patterns
• accelerated infrastructure investment
• increased electrification across industries

At the same time, the pace and success of the transition will continue varying between countries depending on:
• policy settings
• infrastructure readiness
• market conditions
• geography
• political priorities

The first half of 2025 may ultimately be remembered as the moment renewable energy moved from emerging alternative to dominant global growth engine.

Written by Tarnia Riggs.

If there is a future industry topic, infrastructure challenge, or energy conversation you would like explored as part of the Energy 101 Series, feel free to reach out.