Coal vs. Renewable Energy: The Tide Has Turned
In October 2025, the energy-focused thinktank, Ember, found that renewable energy—solar, wind, hydro, and other sources—generated 34.3% of all global energy in the first half of 2025. It marks the first time renewables contributed more energy than fossil fuels, reaching an important milestone at an otherwise uncertain time for the industry.
Renewable Energy Adoption Isn’t Equal
Most of the growth in renewables has been in high-population developing economies led by China and India. The US has increased its renewable capacity but has largely met the increased electricity demand using fossil fuels, primarily natural gas. Coal remains a fixture in many Western societies, however, and some coal-powered power plants have been kept in operation longer than planned. Coal generation fell 0.6% globally in the first half of 2025, with the decline more pronounced overseas.
Several countries posted record solar energy production during the period, including Hungary, Pakistan, and Australia.
The US Lags Behind
Despite the confrontational and competitive nature of the US-China relationship, there’s no contest when it comes to renewable investment and generation. China now accounts for 55% of solar generation growth, with the US responsible for 14%. With significant policy shifts from the Trump administration, the US’s clean-energy development efforts are expected to fall even further behind.
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Can Renewables Meet Rising Energy Demand?
Outpacing coal is an important event in energy history, but experts are worried that the rapidly increasing energy demand may make renewable energy’s gains a hollow victory. For decades, US power demand was essentially static, rising in small increments as efficiency efforts kept total electricity consumption in check. Over the past few years, however, the growth in data centers, AI, and the increased adoption of air conditioning have caused demand to grow roughly 3% per year.
The US’s current investment in renewable energy generation isn’t enough to meet that growth rate. While the cost of solar energy versus coal may be lower, the initial infrastructure investment is expensive, and this administration shows no signs of facilitating that level of funding in any case.
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