Whalesbook
Fossil Fuel Drop: A First This Century
India and China, the world's largest electricity consumers, have hit a major milestone: fossil fuel power generation fell for the first time this century in 2025. Energy think tank Ember reported the significant shift, signaling major changes in global energy trends.
India's Renewable Surge Powers Decline
India's fossil fuel output dropped by 52 terawatt-hours (TWh), a 3.3% decrease, ending four years of post-pandemic growth. A record expansion in renewables drove this change. Solar generation jumped by 53 TWh (a 37% increase), with India installing more solar capacity than the United States in 2025. Wind power added 22 TWh, and hydro generation climbed 21 TWh, boosted by good monsoon rains. Renewables grew twice as fast as overall demand.
Milder Demand, Less Coal in India
India's total power demand grew by a slower 2.4% in 2025, down from the previous year. This moderation was due to milder summer temperatures, lowering cooling needs, and slower industrial activity. As a result, coal-fired power generation fell by 44 TWh, or 2.9%. Coal's share in India's electricity mix dropped to 71% from 75% in 2024.
Global Energy Shift Accelerates
These shifts in India and China come as the global energy system faces disruptions from geopolitical events, like the war in Ukraine and conflicts affecting fossil fuel supplies. The move away from fossil fuels in these major economies is speeding up the global energy transition. This creates both opportunities and challenges for energy producers and renewable tech firms. The impact on energy security and climate goals is significant.