India’s renewable electricity generation climbed nearly 24% in 2025, while electricity generation from coal, oil and natural gas declined, even as the world recorded another year of record energy demand and fossil fuel consumption. India’s emissions rose just 0.9%, below the global average of 1.1% and significantly lower than the US’ 3.2%, highlighting a contrasting energy transition as global energy demand grew 1.7% and every major fuel reached an all-time high, according to the Energy Institute Statistical Review of World Energy.
The report, released by the Energy Institute in partnership with Ember and in collaboration with Kearney and KPMG, shows that while the global energy transition gathered momentum, rising demand continued to outpace decarbonisation efforts. Total energy supply increased 1.7% in 2025, with oil, coal, natural gas, nuclear energy and renewables all reaching record consumption levels for the second consecutive year.
For India, the picture was markedly different. Renewable electricity generation recorded nearly 24% growth, while generation from coal, oil and gas declined. The report also highlighted a 40% increase in behind-the-meter and off-grid solar, the largest increase outside China, underscoring the rapid expansion of distributed solar capacity. Overall fossil fuel consumption remained broadly unchanged from 2024, although gas consumption declined 5.9%. At the same time, India continued to rely heavily on imported fossil fuels, with 86% of its oil consumption and 53% of its gas consumption met through net imports in 2025.
Globally, electricity demand rose 3%, significantly faster than overall energy demand, driven by rapid electrification, electric vehicles, data centres and artificial intelligence. For the first time, the increase in electricity demand was met entirely by low-carbon sources, with renewables and hydropower overtaking coal as the largest source of power generation. Fossil fuel-based generation declined overall, resulting in fossil fuels being substituted rather than supplemented.
The report identified solar as the principal driver of the global energy transition. Solar generation expanded 30% worldwide, while battery storage capacity grew 66%, reinforcing their position as the fastest-scaling clean energy technologies. Renewables also became the largest source of total energy supply growth for the first time outside a recession, with solar accounting for 72% of the increase.
Despite these gains, global emissions continued to rise as energy demand remained robust. The report noted that improvements in energy efficiency remained at 2%, only half the 4% annual improvement targeted under the COP28 agreement.
Regional trends showed sharply diverging pathways. China installed more wind and solar capacity than the rest of the world combined while coal generation declined. Europe expanded renewable generation by 7%, although weaker hydro output offset part of the gains, while UK solar generation rose 37%. In contrast, the US recorded a 28% increase in solar generation, but coal-fired generation surged 13%, driving the country’s 3.2% increase in emissions.
The review also pointed to a structural shift in global oil markets. Oil production in the Americas increased 4.8% in 2025, helping lessen the impact of the ongoing Middle East conflict. The region now produces 20% more oil than the Middle East, reversing the balance seen two decades ago.
Andy Brown, President of the Energy Institute, said: “In this, the 75th edition of the Statistical Review of World Energy, energy remains at the forefront of the world’s political and economic agenda, shaped by changing priorities on energy security, affordability and sustainability. To satisfy the continued insatiable growth in energy demand, we again see growth in all sources of total energy supply.”
Aditya Lolla, Interim Managing Director at Ember, said: “The geopolitical fault lines of global energy markets are once again exposed. Even before the second major fossil shock in four years, the data show that global energy supply growth is increasingly renewable and electric, driven by the hard economics of efficiency and security more than by mandate.”
Maria de Kleijn, Europe Lead, Sustainability and Partner at Kearney, said: “The latest Statistical Review confirms that renewable energy is no longer a niche contributor to the global energy mix. Solar and renewables are scaling at unprecedented rates, but deployment alone is not enough. The next phase of the transition will be defined by system-wide execution, ensuring grids, storage, and flexibility solutions keep pace so clean energy growth translates into economic and societal transformation.”