Renewable energy has, for the first time, overtaken coal as the world’s leading source of electricity, according to new data from the global energy think tank Ember.

Electricity demand continues to rise worldwide, but the rapid expansion of solar and wind power was so strong in the first half of the year that it met 100% of the additional demand – even contributing to a small decline in coal and gas use.

However, Ember warns that these headline figures conceal a more complex global picture.

Developing nations, particularly China, drove the surge in clean energy growth, while wealthier countries such as the United States and members of the European Union became more reliant on planet-warming fossil fuels for their electricity generation.

This divide is expected to widen further, according to a separate report from the International Energy Agency (IEA). It predicts that renewables will expand far more slowly in the US than previously forecast, largely as a result of President Donald Trump’s policies.

Coal – one of the largest contributors to global warming – remained the world’s biggest single source of electricity in 2024, a position it has held for over half a century, the IEA said.

Although China continues to expand its fleet of coal-fired power stations, it is also leading the world in clean energy development, adding more solar and wind capacity than the rest of the world combined. This has allowed renewable generation in China to outpace the growth in electricity demand, cutting fossil fuel generation by 2%.

India also saw slower growth in electricity demand and installed significant new solar and wind capacity, enabling it to reduce its dependence on coal and gas.

By contrast, developed nations such as the US and those in the EU experienced the opposite trend. In the US, electricity demand increased faster than clean energy output, forcing greater use of fossil fuels. In the EU, months of weak wind and hydropower generation led to a rise in coal and gas use.

In a separate assessment, the IEA halved its forecast for renewable energy growth in the US this decade. Last year, it predicted the country would add 500GW of new renewable capacity – mostly solar and wind – by 2030. That figure has now been revised down to 250GW.

The IEA’s findings represent the most comprehensive analysis to date of how the Trump administration’s policies are affecting global efforts to transition to cleaner energy. They also highlight the starkly different approaches being taken by the US and China.

While China’s clean technology exports continue to surge, the US is increasingly focused on promoting its oil and gas exports abroad.

Despite these regional differences, Ember described the latest figures as a “crucial turning point”.

Malgorzata Wiatros-Motyka, a senior analyst at Ember, said the shift “marks the beginning of an era in which clean power is keeping pace with demand growth.”

Solar energy accounted for the vast majority of renewable expansion, meeting 83% of the increase in electricity demand. It has now been the world’s largest source of new electricity for three consecutive years.

More than half of all solar generation (58%) is now in lower-income nations, many of which have experienced explosive growth thanks to dramatic cost reductions.

According to Ember, solar prices have fallen by a staggering 99.9% since 1975, making the technology so affordable that entire national markets can emerge within a year – particularly in countries where grid electricity is costly or unreliable.

Pakistan, for example, imported solar panels capable of generating 17 gigawatts (GW) of power in 2024 – double the previous year and equivalent to roughly one-third of its current total electricity capacity.

Across Africa, solar panel imports rose by 60% in the year to June, with coal-dependent South Africa leading the way. Nigeria overtook Egypt to become the continent’s second-largest solar market, adding 1.7GW of capacity – enough to power around 1.8 million homes in Europe.

Several smaller African nations saw even more dramatic growth: Algeria’s solar imports increased 33-fold, Zambia’s eightfold and Botswana’s sevenfold.

In some cases, however, rapid solar adoption is creating unforeseen challenges. In Afghanistan, for instance, widespread use of solar-powered water pumps is lowering the water table, threatening long-term access to groundwater. A study by Dr David Mansfield and satellite data firm Alcis warns that parts of the country could run dry within five to ten years, putting millions of livelihoods at risk.

Adair Turner, chair of the UK’s Energy Transitions Commission, said countries in the global “sun belt” and “wind belt” face very different energy challenges.

Sun belt nations – spanning much of Asia, Africa and Latin America – require large amounts of daytime electricity for cooling. These countries can significantly cut energy costs by switching to solar power supported by increasingly affordable battery storage.

By contrast, wind belt nations such as the UK face steeper hurdles. Wind turbine prices have fallen by only about one-third over the past decade, far less than solar costs, while higher interest rates have driven up borrowing and installation costs for new wind farms.

Balancing supply is also more difficult: extended periods of low wind in winter require backup power sources that batteries alone cannot yet provide, making such systems more expensive to operate.

Yet wherever one looks, China’s dominance in clean technology remains unmatched. New data from Ember shows that in August 2025, China’s clean tech exports reached a record $20 billion, driven by soaring sales of electric vehicles (up 26%) and batteries (up 23%). Together, those exports are now worth more than twice the value of China’s solar panel trade.

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