Ember Annual Global Electricity Review

Why in the News?

The report, primarily based on the Ember Annual Global Electricity Review, is trending because it marks a “decoupling” of economic growth from fossil fuel use. Historically, as India’s economy grew, coal power rose; 2025-26 proves that renewable energy is now scaling fast enough to meet and even exceed new demand.

### Key Points:

1. Global & Domestic Reversal

• Simultaneous Decline: In 2025, fossil fuel power fell by 52 TWh in India and 56 TWh in China. This is the first time both nations saw a drop in the same year since the 1970s (excluding the anomaly of the COVID-19 pandemic).

• Global Impact: Because India and China are the world’s largest fossil fuel consumers, their shift led to a 0.2% global decline in fossil power, even as total electricity demand rose.

2. India’s Renewable Surge

• Solar Dominance: India added a record 38 GW of solar capacity in 2025, surpassing the United States’ annual installations for the first time.

• Wind & Hydro: The country also added 6.3 GW of wind and approximately 4 GW of hydropower.

• Demand Gap: India’s additional electricity demand was 49 TWh, but its renewable sector produced 98 TWh more than the previous year—effectively “swallowing” the demand growth and displacing coal.

3. Milestones and Records

• Renewables vs. Coal: Globally, renewables reached 33.8% of the power mix, overtaking coal (33.0%) for the first time in over a century.

• Emissions Dip: India’s power-sector $CO_2$ emissions showed a decline in the first half of 2025, a rare occurrence in the nation’s industrial history.

4. Risks & Outlook (“Staring at Reversal”)

• Monsoon Dependency: The report warns that this progress is sensitive to weather. The Met department has predicted below-normal monsoon rainfall for 2026.

• The Chain Reaction: Low rainfall reduces hydropower output and increases the need for electricity for irrigation pumps. If the 2026 summer is harsh, fossil fuel generation might temporarily rise again to fill the gap.

Note: The report emphasizes that while 2025 was a landmark year, the transition remains “uneven.” Sustained progress depends on maintaining this record pace of solar and wind installations despite climatic variations.