Renewable energy sources generated approximately one-third of the world’s electricity in 2025, marking a significant milestone in the global energy transition. Solar, wind, hydropower, geothermal, and biomass collectively produced this output, with hydropower contributing 15%, wind 8%, and solar 7% of total generation. Meanwhile, fossil fuels remained the dominant source at nearly 60% of global electricity, primarily from coal at 35% and natural gas at 22%.
The expansion of renewable capacity has accelerated dramatically in recent years. New capacity additions in 2025 reached record levels, with renewables accounting for more than 85% of all new electricity generation capacity added globally. Over the past 25 years, total renewable electricity generation capacity increased nearly sevenfold, from 764 gigawatts in 2000 to 5,149 gigawatts by 2025, with a growth rate of 15.5% recorded in 2025 alone. Solar emerged as the fastest-growing electricity source over the preceding eight years, roughly doubling every three years and achieving 2,700 terawatt-hours of generation in 2025.
Cost reductions have been a primary driver of renewable expansion. The levelized cost of electricity for utility-scale solar power declined 90% between 2010 and 2024, while onshore wind costs dropped 70% during the same period. Battery storage costs fell 90% from 2012 to 2025, enabling solar and wind to provide more consistent grid supply. These technological improvements and economies of scale have made renewable electricity a competitive and cost-stable option compared to fossil fuel generation, which carries ongoing fuel expenses.
Government policies and corporate purchasing commitments have further supported renewable growth. More than 130 governments maintain policies encouraging solar, wind, and other renewable deployment through subsidies, purchasing targets, and carbon pricing mechanisms. For 2030, the International Energy Agency projects that solar and wind will account for approximately 30% of global electricity generation, nearly doubling their current share. Notably, 2025 marked the first year in over a century that renewable electricity generation exceeded that from coal.
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