Uncategorized
April 23, 2026

Renewable energy has caught up to coal as the world’s largest power source

In 2025, renewable energy rivaled coal as the main source of electricity across the globe, according to a new report from the International Energy Agency released several days prior to Earth Day. In the United States, renewable energy growth continues, but the pace has slowed. 

The IEA’s annual Global Energy Review, a publication looking back at the previous year’s data on power production, shows that renewable energy production increased by 8.5% in 2025. Across the world, coal power produced the most electricity of any source, with 10,858 terawatt-hours. Renewables, which include wind and solar, produced 10,808 terawatt-hours.

U.S. policy toward renewable energy has undergone a sharp turn over the past few years. Motivated by concerns over climate change, the Biden administration’s 2022 Inflation Reduction Act provided long-term subsidies for wind and solar power and electric vehicles, and it doled out grant money for renewable projects. The Trump administration rescinded billions in grants, axed the EV subsidy, and shortened the time frame that renewable energy companies have to qualify for tax credits. 

President Donald Trump and other federal officials have emphasized the need to invest in coal, gas and nuclear power plants that generate around-the-clock wattage. Nevertheless, renewable power — solar in particular — has continued to grow, but not as fast as electricity demand. 

How much has renewable energy increased globally? 

Last year, the worldwide gap between coal and renewable power production was only 50 terawatt-hours — enough to power about 4.6 million American homes for a year. In 2024, that gap was 960 terawatt-hours, and in 2021, it was more than 2,200. 

Solar power drove much of the growth. The world produced 600 terawatt-hours more solar power in 2025 compared to the previous year, and the number of solar installations continued to climb, with the IEA saying solar now has a higher installed capacity than any other single technology. 

The European Union and China lead the world in renewables, which generated 48.2% and 36.7% of their total electricity in 2025. Combined, the additions of new nuclear power and new renewables exceeded global growth in electricity demand, meaning the growth in zero-emissions power sources is actively replacing other fuel types, such as coal. 

What is the energy mix in the US?

The United States is unique because, rather than coal, the primary source of electricity is natural gas, which accounted for 39.8% of power generated in 2025. The global average is 21.2%. 

Renewable power at 24.5% already exceeds coal at 17.3%, but 2025 broke a years-long pattern in the U.S. of declining coal power and increasing gains in wind and solar. In year-over-year terms, coal power increased by 10%, while renewables continued to climb, but the amount of new renewable energy added to the grid fell by 10% compared to 2024.

Coal’s gains are due to a combination of higher natural gas prices that made coal more competitive and increased demand for electricity. 

U.S. electricity demand grew 2% in 2025 — more than three times the average annual growth rate of the prior decade. Data centers alone accounted for roughly half of all electricity demand growth in the country, consistent with IEA projections that data centers will drive half of US electricity demand growth through 2030.


Round out your reading

TAGS: