Global Energy: Fossil Fuels Still Dominate Despite Renewables Rise

Global energy demand continues to rise, with fossil fuels still making up the vast majority of the energy supply. In 2025, total energy supply increased by 1.7%, primarily driven by fossil fuels, while emissions climbed by 1.1%. Fossil fuels constituted 86% of the total energy supply, with renewables, nuclear, and hydropower making up the remainder. However, some experts suggest low-carbon energy may supply as much as 30% of 'useful' energy, indicating the transition away from fossil fuels might be further along than these statistics suggest.

Electricity is playing an increasingly vital role in the global energy system, with generation growing by 3%. This rise is attributed to factors including increased demand for air conditioning and data centers, population growth, and the expansion of electric vehicles. Renewables are gaining significant ground in electricity generation, supplying nearly 19.47% of the global total, an increase from 17.25% in the previous year. Notably, solar power generation saw a remarkable 30% increase, now contributing 8.7% to global power, nearly matching nuclear output.

China leads the world in solar capacity, housing over half of the global total, with significant growth in behind-the-meter solar installations by homes and businesses. Demand for electricity by data centers also surged by 19.7%. Despite these advancements, the development of low-carbon hydrogen remains slow, with 'green' hydrogen production at a fraction of global demand. Grid-scale battery storage capacity has expanded significantly, with China holding nearly half of the global capacity. The overall energy transition shows mixed progress, with a slight decrease in fossil fuels' share of primary energy supply over the past decade, yet emissions have risen for five consecutive years since the pandemic.