Coal Capacity Up, Usage Slips Globally

A fresh report by Global Energy Monitor (GEM) has highlighted a striking shift in the global energy landscape: while coal power capacity increased by 3.5% in 2025, actual coal-based electricity generation declined by 0.6%, indicating that the world’s energy systems are steadily moving toward cleaner alternatives. The report points to China and India as the most significant examples of this transformation. Both countries continue to add coal capacity, yet at the same time, record installations in solar and wind power are meeting almost all incremental electricity demand, reducing the need for coal plants to operate at higher levels. According to GEM, nearly 95% of coal plant construction globally is concentrated in China and India, showing that coal expansion is increasingly limited to a handful of countries, even as renewable energy reshapes power generation patterns worldwide. The data suggests a deeper structural change: coal capacity may still be growing on paper, but its actual role in electricity generation is beginning to weaken as renewables become cheaper, scalable, and more efficient. India, for example, has crossed a key milestone in 2025, with non-fossil fuel capacity now exceeding 50% of its total installed power base, reinforcing the country’s dual-track strategy of maintaining energy security while rapidly expanding clean energy. The GEM findings underline a global reality — coal is still part of the energy mix, but the long-term momentum is increasingly shifting toward renewable power, marking another step in the global transition to a lower-carbon future.