ASIATODAY.ID, JAKARTA — The global energy transition reached a historic milestone in 2025 as renewable energy became the world’s largest source of energy supply growth outside a recession for the first time, signalling that electrification is rapidly emerging as the defining force of the future energy system.
The finding comes from the 75th Energy Institute Statistical Review of World Energy, published by the Energy Institute in partnership with Ember, Kearney and KPMG. The report provides one of the most comprehensive assessments of global energy trends in 2025, showing that renewable electricity is increasingly being driven not only by climate commitments but also by economic competitiveness, technological innovation and energy security.
Global total energy supply (TES) grew by 1.7% in 2025, with every major energy source reaching record levels for the second consecutive year. The report’s defining conclusion, however, is that renewables became the single largest contributor to global energy supply growth, marking a structural turning point in the world’s energy transition.
Solar energy accounted for 71% of the increase in renewable energy generation, reinforcing its position as the world’s fastest-growing energy technology.
Electricity demand continued to expand faster than overall energy consumption, fuelled by rapid growth in electric vehicles (EVs), artificial intelligence, data centres, digital infrastructure and industrial electrification.
The report identifies Asia-Pacific as the centre of this transformation. While the region remains the largest contributor to global fossil fuel demand growth, it is also leading the world’s electrification, combining faster deployment of clean energy technologies with significantly lower per-capita fossil fuel consumption than advanced economies.
According to Aditya Lolla, Interim Managing Director of Ember, the shift toward renewable electricity had already been reshaping global energy markets well before the latest geopolitical tensions affected fossil fuel supply chains.
“Even before the second major fossil fuel shock in four years, global energy supply growth was increasingly being driven by renewable energy and electrification, supported by the economics of efficiency and energy security.”
Another landmark finding is that virtually all additional global electricity demand in 2025 was supplied by low-carbon energy sources. Combined renewable and hydropower generation overtook coal as the world’s largest source of electricity generation, demonstrating that clean energy is increasingly replacing fossil fuels rather than merely supporting growing demand.
Despite this momentum, global carbon emissions still increased by 1.1%, highlighting the challenge of balancing rising energy demand with climate objectives.
The report also underscores a major geopolitical shift. Oil production across the Americas now exceeds that of the Middle East by around 20%, reflecting a fundamental realignment of global energy supply and reinforcing the strategic importance of domestically produced renewable energy.
As geopolitical uncertainty intensifies, the report concludes that energy security is increasingly defined not by diversifying fossil fuel imports, but by reducing dependence on them altogether. Investment in solar power, battery storage, electric mobility and other electrification technologies is becoming a long-term strategic priority for countries seeking resilient, competitive and secure energy systems.
The findings indicate that renewable energy has moved beyond its traditional role as a climate solution. It is increasingly becoming a cornerstone of economic resilience, industrial competitiveness and national security, with Asia expected to remain at the forefront of the next phase of the global energy transition. (AT Network)
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