In a historic first, renewable energy has overtaken coal as the world’s biggest source of electricity during the first half of this year, according to groundbreaking data from the global energy think tank Ember. This significant shift highlights the accelerating transition towards cleaner energy sources worldwide.
While electricity demand continues to grow globally, the surge in solar and wind power has been remarkable, meeting 100% of this increased demand. Even more impressively, this renewable growth has helped reduce reliance on coal and gas, marking a crucial step in combating climate change.
However, the overall picture is complex. Developing nations, particularly China, are leading the charge in clean energy adoption, significantly expanding their solar and wind capacity. China’s growth alone in renewables has outpaced its rising electricity demand, leading to a 2% reduction in its fossil fuel generation. India has also seen positive trends, cutting back on coal and gas due to slower demand growth and increased renewable capacity.
Conversely, developed economies such as the US and the EU have shown a different trend. In the US, electricity demand outpaced clean energy output, leading to increased use of fossil fuels. Similarly, the EU experienced months of underperforming wind and hydropower, resulting in a rise in coal and gas generation.
Despite these regional variations, Ember hails this moment as a “crucial turning point.” Malgorzata Wiatros-Motyka, a senior analyst at Ember, stated that it “marks the beginning of a shift where clean power is keeping pace with demand growth.” Solar power, in particular, has been the dominant force, accounting for 83% of the increase in global electricity demand and leading new electricity generation for three consecutive years.
The cost-effectiveness of solar power has been a major driver, with prices plummeting by nearly 100% since 1975. This affordability is enabling rapid market expansion, especially in regions with expensive or unreliable grid electricity. Countries like Pakistan have seen dramatic increases in solar panel imports, boosting their generating capacity significantly.
Africa is also witnessing a solar boom, with imports rising sharply year-on-year. Nations like South Africa are leading the way, and countries like Nigeria are making substantial gains in solar capacity, now capable of powering millions of European homes.
While the rapid growth of solar power brings immense benefits, it also presents challenges. In Afghanistan, the widespread use of solar-powered water pumps is reportedly lowering the water table, raising concerns about long-term water accessibility and potentially impacting millions of livelihoods.
Experts like Adair Turner, chair of the UK’s Energy Transitions Commission, differentiate the energy challenges faced by countries in the “sun belt” versus the “wind belt.” Sun belt nations, needing electricity for daytime cooling, can quickly reduce costs with solar and battery storage. Wind belt countries, like the UK, face greater obstacles due to slower cost reductions in wind technology, higher interest rates impacting project financing, and the challenge of balancing supply during winter wind lulls, which require more extensive and costly backup solutions.
China’s dominance in clean technology exports continues to be a major factor, with significant growth in electric vehicles and batteries alongside solar panels. This reflects a global trend towards cleaner energy, driven by innovation and a growing awareness of climate change impacts.