Energy Outlook 2025: Renewable Growth Reshapes Global Market

The year we are saying goodbye to has been extremely dynamic – bringing new social and environmental risks, but also clear progress toward a cleaner energy system, as summarized by Ember in its review of the global energy transition in 2025.

This year, two sources of renewable energy – solar and wind – achieved particular success. In fact, energy from these sources is now expanding fast enough to cover all new electricity demand. In the first three quarters, solar and wind provided 17.6 percent of global electricity generation, increasing the share of low-carbon sources to 43 percent.

During a sustained period in 2025, together with these two sources, hydro and smaller sources, such as geothermal energy, generated more electricity than coal.

Solar energy has notably accelerated in markets and regions that had previously lagged behind, including countries across Africa. In South America, wind and solar in Brazil produced more than one-third of total electricity for the first time in a single month, in August.

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Electrotechnologies – solar, wind, batteries, electric vehicles, heat pumps, and others – have become the main driver of global energy growth.

Falling battery storage costs have contributed to making the goal of 24/7 solar power achievable. In countries with already high solar capacity, combining solar with battery systems has enabled nearly continuous electricity supply at a cost of around USD 104 per MWh, making this option cheaper than new coal-fired or nuclear power plants.

A striking example also comes from India, where heavy industry – such as steel, cement, and chemical production – can now supply most of its electricity demand from renewable sources.

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