Chart of the Day: Farewell King Coal, Long Live King Solar (and Wind and Batteries)

Why It Matters

The shift signals a structural transition that will reshape energy markets, accelerate fossil‑fuel divestment, and tighten pathways toward global decarbonisation targets.

Key Takeaways

• 2025 added 814 GW solar and wind capacity worldwide
• Fossil capacity additions in 2025 total 158 GW gross
• Renewables surpassed coal in global electricity generation in 2025
• Solar's growth rate marks the fastest electricity shift in history

Pulse Analysis

The 2025 capacity‑addition data underscores a watershed moment for the global power sector. After a decade of modest renewable growth, solar and wind installations exploded to 814 GW, a figure more than five times the combined new fossil capacity. This rapid build‑out not only outpaces historical upgrades of coal‑based plants but also aligns with the International Energy Agency’s forecast that renewables will dominate new capacity through 2030. The sheer scale of these additions is reshaping the supply curve, driving down levelized costs and prompting utilities to re‑evaluate long‑term generation portfolios.

Investors and policymakers are taking notice as the renewable surge translates into tangible market outcomes. Coal‑dependent regions face accelerating asset stranding, while gas‑fired plants confront tighter capacity margins and heightened competition from low‑cost solar‑PV and on‑shore wind. The shift also fuels a surge in capital flows toward battery storage, grid‑modernisation projects, and ancillary services needed to integrate intermittent generation. Financial institutions are recalibrating risk models, increasingly favouring ESG‑aligned projects that promise stable, long‑term cash flows in a decarbonising economy.

Looking ahead, the momentum suggests that 2026 and beyond will see renewables cementing their dominance, but challenges remain. Integrating 814 GW of variable generation will require robust transmission upgrades, advanced forecasting, and scalable storage solutions. Policy frameworks that support market‑based pricing for flexibility and incentivise hybrid renewable‑storage deployments will be critical. If these hurdles are addressed, the world could see a decisive decline in fossil‑fuel reliance, accelerating progress toward the Paris Agreement’s 1.5°C pathway.