Renewables Set to Overtake Coal as the World's Largest Electricity Source in 2026: IEA
Renewable electricity generation is set to overtake coal globally in 2026, after reaching near parity in 2025, according to the International Energy Agency's Electricity Mid-Year Update 2026. Global electricity demand is expected to grow 3.6% in 2026 and 3.8% in 2027, driven by industry, electric vehicles, air conditioning, household appliances and data centres, taking consumption from 28,600 terawatt hours in 2025 to 30,700 TWh by 2027. Renewable generation should grow more than 8% in 2026, lifting its share of global generation from 33% in 2025 to 37% by 2027. Solar PV remains the largest single contributor to supply growth, forecast to rise about 600 TWh in 2026 and to overtake wind as the world's second-largest renewable source after hydropower. India's electricity demand is forecast to rebound 7% in 2026, and India crossed 100 GW of variable renewable energy supply for the first time in July.
Key Facts & Details
12 points- 1Renewable generation will overtake coal globally in 2026, after near parity in 2025.
- 2The finding is from the IEA's Electricity Mid-Year Update 2026.
- 3Global electricity demand is to grow 3.6% in 2026 and 3.8% in 2027.
- 4Consumption rises from 28,600 TWh in 2025 to 30,700 TWh by 2027.
- 5Renewables' share of global generation goes from 33% in 2025 to 37% by 2027.
- 6Solar PV generation is forecast to rise about 600 TWh in 2026.
- 7Solar PV is set to overtake wind as the second-largest renewable source after hydropower.
- 8India's electricity demand is forecast to rebound 7% in 2026.
- 9India crossed 100 GW of variable renewable energy supply for the first time in July.
Deep Dive
- +Demand growth is driven by industry, EVs, cooling, appliances and data centres.
- +India and other Asian economies' share of global solar additions rises from about 10% in 2025 to 17% in 2026.
- +Rising evening peaks continue to strain India's grid.
Exam Focus
According to the IEA, in which year will renewable generation overtake coal as the world's largest electricity source?
Exam Relevance & Angle
The renewables-overtaking-coal milestone, the IEA report name and India's demand growth forecast are high-value environment and energy general awareness.
Target Exams
Background & Context
Coal has been the single largest source of the world's electricity for over a century, so the crossover point where renewables generate more is a genuine structural marker rather than a yearly fluctuation. Two things drive it: solar photovoltaic capacity is being added faster than any other source, and demand growth itself is shifting towards uses that can be met with clean power. The catch is variability — solar produces nothing after sunset, which is exactly when household demand peaks. That is why India crossing 100 GW of variable renewable energy matters alongside the note that evening peaks strain the grid: generating the electricity and delivering it at the hour people need it are separate problems.
Test Yourself
1 / 2According to the IEA, renewable electricity generation is set to overtake coal globally in:
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