Solar Energy Halts the Growth of Fossil Fuel-Generated Electricity

In 2025, something happened that had never happened before in this century: global fossil fuel electricity generation did not grow. Solar power alone accounted for three-quarters of the increase in electricity demand.

This is according to the latest Global Electricity Review by the energy think tank Ember, which analyzed data from 215 countries. The figures are clear: solar power increased by 636 TWh, a 30% year-over-year growth. Wind and solar together accounted for 99% of global demand growth. Fossil fuel-based generation declined by 0.2%.

This is the first time this century that both China and India have simultaneously seen a decline in their fossil fuel-based electricity generation. In both countries, renewable generation grew faster than total demand.

Europe is leading the way, but faces a different challenge

Within the EU, the shift is even more pronounced. In 2025, combined wind and solar generation exceeded total fossil fuel generation for the first time, accounting for 30% of the EU’s electricity production. By comparison, in 2010 that figure was 5%.

Solar energy accounted for 13.1% of electricity generation in the EU, a sharp increase from 5.3% in 2020. The EU is thus ahead of the global average of 8.7%, as well as the U.S. (8.6%) and China (11.1%). During peak months, solar power in large systems such as the Netherlands already covered two-thirds of demand on an average day.

Coal fell to a historic low of 9.2% of EU electricity production; in 2022, that figure was still 16%. Nineteen EU countries now generate less than 5% of their electricity from coal.

The downside: natural gas use rose by 8% in 2025 to compensate for lower hydropower production (a dry year, with significant declines in the Alpine regions, including France). As a result, the EU’s gas import bill for the electricity sector totaled 32 billion euros, 16% more than the previous year. The EU’s dependence on gas remains a geopolitical risk, even though that dependence on Russian gas will disappear by 2027.

The BESS business case turned around in 2025

Ember’s report confirms what was already evident from our experience: the cost of battery storage fell sharply again in 2025, by 45% compared to 2024. At the same time, the global deployment of battery capacity rose by 46% to an estimated 250 GWh. Ember concludes that solar power combined with battery storage is now cheaper to build than a new gas-fired power plant.

In the EU, approximately 15 GWh of utility-scale battery capacity was added in 2025. That is enough to shift 9% of new solar power generation from daytime to other hours. The report states that the EU has a record-breaking pipeline that could quadruple battery capacity.

What does this mean for businesses?

Anyone who has a solar power system today and isn’t actively managing it is missing out on returns. Not because of a poorly installed system, but because of an energy system that functions fundamentally differently than it did five years ago.

The report refers to “a rise in negative prices across Europe.” These are a symptom of a system that produces more solar energy than it can absorb at certain times. A BESS solves that problem. An EMS makes the BESS more efficient and profitable. And a partner who manages the entire system ensures that the installation performs well today and tomorrow.

Solar energy has halted the growth of fossil fuels. The next step is to ensure that what is produced is also effectively utilized.

Source: Ember, Global Electricity Review 2026 (published April 2026)