Renewable Energy and Global Electricity Transition

Context: According to data released by the Ember Energy Institute, the entire increase in global electricity demand in 2025 was met by renewable energy sources, mainly solar and wind power, without requiring additional fossil fuel-based electricity generation. However, geopolitical disruptions in West Asia exposed India’s continued dependence on imported fossil fuels.

Explanation:

  • Renewable Energy (RE) refers to energy generated from naturally replenishing sources such as solar, wind, hydropower, biomass, and geothermal energy.
  • In 2025, global electricity demand increased by nearly 850 TWh, and this additional demand was met mainly through solar (~636 TWh) and wind (~204 TWh) generation.
  • Earlier, despite rapid renewable expansion, fossil fuel use continued because electricity demand grew faster than renewable capacity additions.
  • Coal remains the single largest source of global electricity generation, though its share declined from around 40% in 2015 to nearly 33% in 2024.
  • Solar and wind energy costs have fallen sharply over the past decade due to technological improvements, economies of scale, and better battery storage systems.
  • China played a major role in renewable expansion, with solar and wind accounting for most of the increase in its electricity demand in 2025.
  • India added large renewable capacity in FY 2024-25, with renewables accounting for nearly 89% of new power capacity additions. India is among the fastest-growing renewable energy markets globally.
  • Despite renewable growth, India remains highly dependent on fossil fuel imports: about 89% of crude oil, 47% of natural gas, and significant quantities of coal are imported.
  • A major portion of India’s crude oil, LNG, and LPG imports comes from West Asia through the Strait of Hormuz, a critical global maritime chokepoint.
  • Energy Security refers to uninterrupted availability of affordable energy supplies, while Decarbonisation refers to reducing dependence on carbon-intensive fossil fuels to limit greenhouse gas emissions.

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