A mid-year check-up on global energy transition progress
However, energy transition progress was more varied at a regional level, as Europe and the United States both recorded rare increases in fossil fuel use while China widened its lead in clean electricity production.
Below is a breakdown of the key global and regional electricity generation milestones recorded so far in 2025.
Global utilities generated a record 6,405 terawatt hours (TWh) of electricity from clean power sources during January to June of 2025, data from energy think tank Ember showed.
That output total was 6% more than during the same months in 2024, and means that worldwide clean electricity supply has increased every six months for the past three years.
Clean power's share of global utility electricity supply was a record 43.2%, and compared to a 41.8% share during the first half of 2024.
Hydro dams were the largest single source of clean electricity globally during January to June, accounting for 14% or 2,060 TWh of total electricity output.
Wind and solar farms both generated around 9% of total electricity supply, which was a record for both power sources in terms of absolute electricity output and share of overall supply.
Nuclear power stations have supplied an additional 9% of global electricity so far this year.
Solar power output recorded the largest year-over-year increase of all power sources, jumping by 29% compared with the opening half of 2024 to 1,289 TWh.
Globally, fossil fuel-powered electricity supply remained flat compared to a year earlier at 8,414 TWh for the first half of the year.
Coal remained the largest source of fossil fuel power and has accounted for a third of global electricity production so far this year, generating around 4,909 TWh of electricity.
However, the outright volume of global coal-fired generation was the smallest for a six-month window since the first half of 2023, and coal's share of the global generation mix was the smallest on record for a six-month span since at least 2019.
Natural gas lost ground in terms of global electricity share so far this year, as a steep climb in gas prices in late 2024 and early 2025 sparked fuel switching to coal and other power sources in several key generation markets.
Overall, natural gas plants supplied 21% of global electricity during the first half of 2025, down from a 22% share the year before and an average 23% share since 2019.
Europe's electricity generation mix showed the largest year-over-year swings among major markets, due in part to sustained declines in wind and hydro power output which forced utilities to ramp up production from fossil fuels.
Wind generation in Europe fell 8% from the opening half of 2024 while hydro output dropped 12%, resulting in a 3% contraction in total clean electricity supply in Europe during January to June compared to the same period in 2024.
To compensate for the decline in clean power, gas-fired electricity output in Europe rose by 9% compared to the opening half of 2024, while coal-fired generated climbed 3%.
In the United States, gas-fired generation fell 4% compared to January to June of 2024, while coal-fired output jumped by 17% as high gas prices sparked widespread fuel switching across U.S. power networks.
In China, which is the top global electricity producer from fossil fuels, output from coal and gas plants both declined by 2% from the first half of 2024.
A 14% increase in total clean electricity supply - to a record 2,007 TWh - alongside pockets of economic weakness has allowed Chinese utilities to trim power supply from fossil fuel plants so far this year.
Elsewhere, clean electricity output rose 7% from the opening half of 2024 while fossil fuel generation held flat, indicating that a majority of economies continued to make energy transition progress even as Europe and the United States regressed.
The opinions expressed here are those of the author, a columnist for Reuters.
Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
44 minutes ago
- Reuters
Huawei shows off AI computing system to rival Nvidia's top product
SHANGHAI, July 26 (Reuters) - China's Huawei Technologies showed off an AI computing system on Saturday that one industry expert has said rivals Nvidia's most advanced offering, as the Chinese technology giant seeks to capture market share in the country's growing artificial intelligence sector. The CloudMatrix 384 system made its first public debut at the World Artificial Intelligence Conference (WAIC), a three-day event in Shanghai where companies showcase their latest AI innovations, drawing a large crowd to the company's booth. The system has drawn close attention from the global AI community since Huawei ( first announced it in April. Industry analysts view it as a direct competitor to Nvidia's (NVDA.O), opens new tab GB200 NVL72, the U.S. chipmaker's most advanced system-level product currently available in the market. Dylan Patel, founder of semiconductor research group SemiAnalysis, said in an April article that Huawei now had AI system capabilities that could beat Nvidia. Huawei staff at its WAIC booth declined to comment when asked to introduce the CloudMatrix 384 system. A spokesperson for Huawei did not respond to questions. Huawei has become widely regarded as China's most promising domestic supplier of chips essential for AI development, even though the company faces U.S. export restrictions. Nvidia CEO Jensen Huang told Bloomberg in May that Huawei had been "moving quite fast" and named the CloudMatrix as an example. The CloudMatrix 384 incorporates 384 of Huawei's latest 910C chips and outperforms Nvidia's GB200 NVL72 on some metrics, which uses 72 B200 chips, according to SemiAnalysis. The performance stems from Huawei's system design capabilities, which compensate for weaker individual chip performance through the use of more chips and system-level innovations, SemiAnalysis said. Huawei says the system uses "supernode" architecture that allows the chips to interconnect at super-high speeds and in June, Huawei Cloud CEO Zhang Pingan said the CloudMatrix 384 system was operational on Huawei's cloud platform.
Reuters
3 hours ago
- Reuters
China proposes new global AI cooperation organisation
SHANGHAI, July 26 (Reuters) - China said on Saturday it wanted to create an organisation to foster global cooperation on artificial intelligence, positioning itself as an alternative to the U.S. as the two vie for influence over the transformative technology. China wants to help coordinate global efforts to regulate fast-evolving AI technology and share the country's advances, Premier Li Qiang told the annual World Artificial Intelligence Conference in Shanghai. President Donald Trump's administration on Wednesday released an AI blueprint aiming to vastly expand U.S. AI exports to allies in a bid to maintain the American edge over China in the critical technology. Li did not name the United States but appeared to refer to Washington's efforts to stymie China's advances in AI, warning that the technology risked becoming the "exclusive game" of a few countries and companies. China wants AI to be openly shared and for all countries and companies to have equal rights to use it, Li said, adding that Beijing was willing to share its development experience and products with other countries, particularly the "Global South". The Global South refers to developing, emerging or lower-income countries, mostly in the southern hemisphere. How to regulate AI's growing risks was another concern, Li said, adding that bottlenecks included an insufficient supply of AI chips and restrictions on talent exchange. "Overall global AI governance is still fragmented. Countries have great differences particularly in terms of areas such as regulatory concepts, institutional rules," he said. "We should strengthen coordination to form a global AI governance framework that has broad consensus as soon as possible." The three-day Shanghai conference brings together industry leaders and policymakers at a time of escalating technological competition between China and the United States - the world's two largest economies - with AI emerging as a key battleground. Washington has imposed export restrictions on advanced technology to China, including the most high-end AI chips made by companies such as Nvidia (NVDA.O), opens new tab and chipmaking equipment, citing concerns that the technology could enhance China's military capabilities. Despite these restrictions, China has continued making AI breakthroughs that have drawn close scrutiny from U.S. officials. China's Vice Foreign Minister Ma Zhaoxu told a roundtable of representatives from over 30 countries, including Russia, South Africa, Qatar, South Korea and Germany, that China wanted the organisation to promote pragmatic cooperation in AI and was considering putting its headquarters in Shanghai. The foreign ministry released online an action plan for global AI governance, inviting governments, international organisations, enterprises and research institutions to work together and promote international exchanges including through a cross-border open source community. The government-sponsored AI conference typically attracts major industry players, government officials, researchers and investors. Saturday's speakers included Anne Bouverot, the French president's special envoy for AI, computer scientist Geoffrey Hinton, known as "the Godfather of AI", and former Google CEO Eric Schmidt. Tesla (TSLA.O), opens new tab CEO Elon Musk, who has in past years regularly appeared at the opening ceremony in person or by video, did not speak this year. Besides forums, the conference features exhibitions where companies demonstrate their latest innovations. This year, more than 800 companies are participating, showcasing more than 3,000 high-tech products, 40 large language models, 50 AI-powered devices and 60 intelligent robots, according to organisers. The exhibition features predominantly Chinese companies, including tech giants Huawei and Alibaba ( opens new tab and startups such as humanoid robot maker Unitree. Western participants include Tesla, Alphabet (GOOGL.O), opens new tab and Amazon (AMZN.O), opens new tab.
Reuters
4 hours ago
- Reuters
Pony AI says it has permit for driverless robotaxi services in Shanghai area
July 26 (Reuters) - Chinese robotaxi operator Pony AI (PONY.O), opens new tab said on Saturday it had received a permit to provide fully driverless commercial robotaxi services in Shanghai's Pudong financial district. Pony AI will launch fully driverless ride-hailing services in the city, starting in the core business district of Jinqiao and Huamu before expanding to other regions, the company said in a statement.
