A major shift in the world’s energy system occurred in 2025. For the first time in modern history, renewable electricity generation grew faster than global electrical demand. In other words, every new watt of power the world needs is now coming from clean sources. This good news is based on energy data from 215 countries. Clean energy can now keep pace with demand growth. Fossil fuels still dominate but are steadily losing ground. 

The war in Ukraine compromised the flow of oil and natural gas to European countries leading to a shift toward more solar and wind energy. The war in the Middle East is producing a similar acceleration to clean energy across the planet. Even before the blockage of oil flowing from the Middle East, China and India saw declines in fossil fuel usage. In 2025, China alone accounted for half of the world’s solar generation and most of the planet’s new wind output. The same year, two-thirds of India’s total energy investment ($150 billion) was for clean energy.

On the global scene, this shift to solar, wind, and geothermal energy is a major source of economic growth. From 2019 to 2023, five million jobs across the globe were added by expanding renewables (from 30 million in 2019 to 35 million in 2023). It is predicted that another 10 million jobs will be added in clean energy by 2030 while fossil fuels will lose three million jobs. 

A key obstacle showing down the clean transition has been the need for improved battery storage to manage intermittent supply. In the past couple of years there have been big strides in battery innovation and development. Battery costs fell by 45 percent in 2025 while storage capacity grew by 46 percent. This allows solar power to run beyond peak daylight hours. The battery capacity added in 2025 shifts 14 percent of solar generation from midday to peak usage evening hours. 

Scaling up the implementation of promising new battery technologies remains a hurdle, however. Expanding, adding flexibility, and integrating storage into the electric grid infrastructure are other issues that need substantial investment. Big investments are also needed to shift aviation and heavy industry out of reliance on fossil fuel. Halting subsidies to fossil fuels could expedite solving these challenges. 

Ten years ago, based on existing policies and pledges, it was forecast that the planet would experience a 3.5-degree Centigrade warming. Since then, 60 countries have scaled back or eliminated completely planned coal expansion projects. Many of these cancellations have been replaced by clean energy. Clean energy is no longer an alternative but the default. The outlook is now for a 2.6-degree C warming, still extremely high, but 26 percent lower that it was a decade ago, and the transition is accelerating.