Renewables are poised to overtake coal as the world’s largest source of electricity, as early as the end of this year or start of 2026.
The IEA reports that change comes with the backdrop of global electricity demand set to grow at one of the fastest sustained rates in over a decade.
The Electricity Mid-Year Update forecasts demand rising 3.3% in 2025 and 3.7% in 2026, outpacing overall energy demand growth.
The surge reflects increased electrification of industry, transport and buildings, alongside the rapid expansion of data centres and electric vehicles.
Renewables will overtake coal very soon and nuclear output is also hitting record highs thanks to reactor restarts in Japan and growth in Asia.
Natural gas generation will continue to displace coal and oil in many regions.
This shift means carbon dioxide emissions from electricity are expected to plateau in 2025 and slightly decline in 2026. However, the IEA warns more grid investment and storage capacity are needed to secure supply.
“The growth in global electricity demand is set to remain robust through 2026, despite an uncertain economic backdrop,” said Keisuke Sadamori, IEA Director of Energy Markets and Security.
“The strong expansion of renewables and nuclear is steadily reshaping electricity markets in many regions. But this must be matched by greater investment in grids, storage and other sources of flexibility.”
Asia will drive much of the demand, with China and India accounting for 60% of global growth.
By contrast, EU growth remains subdued, hindered by higher electricity costs compared with the US and China.
Renewables will overtake coal later this year appeared first on Energy Live News.