2025 was a year of contrasts for the energy transition: record growth in batteries and solar in many countries coincided with policy rollbacks in the U.S. and a rebound in coal generation. China expanded clean power rapidly — up 15.4% through November — and exported more than $180 billion in clean technologies in the first 10 months. In the U.S., coal output rose 13% Jan–Nov and power‑sector emissions increased, even as U.S. battery storage surpassed 39 GW and shifted peak‑hour generation mixes.
2025 Energy Transition in Eight Charts: Clean Gains and a Coal Comeback
FILE PHOTO: A LNG tanker is seen from the pier in Binz, ahead of a roundtable meeting on the federal plans of a possible construction of an LNG terminal in the Baltic Sea off Ruegen island, to ensure German energy supplies following the Russian invasion to Ukraine, in Binz, Germany, April 20, 2023. REUTERS/Annegret Hilse/File Photo
LITTLETON, Colorado — The year 2025 produced a mixed verdict on the global energy transition: meaningful clean‑energy advances in many places but also notable setbacks that pushed some systems back toward fossil fuels. Below are the key developments captured by eight charts that defined the year and the indicators to watch as 2026 approaches.
China's Expanding Clean‑Energy Influence
China retained its lead in clean electricity generation in 2025, expanding nuclear, solar, wind and bioenergy output faster than any other country. Through the first 11 months of 2025, total clean power output in China rose 15.4% year‑on‑year, according to Ember data. For the first time, clean sources are set to account for more than 40% of China’s utility‑supplied electricity while fossil fuels slide to a record low share of the power mix.
Beyond domestic generation, China strengthened its role as a global supplier of electrification hardware. Customs data compiled by Ember show clean‑technology exports exceeded $180 billion in the first 10 months of 2025, led by nearly $66 billion in battery storage exports and roughly $54 billion in electric vehicle exports. Record shipments of grid equipment and heating and cooling units reinforced China’s dominant position in global clean‑tech manufacturing.
U.S. Policy Rollback Drives A Backslide
By contrast, U.S. progress on clean power slowed in 2025 after federal support for renewables was curtailed under the second Trump administration. Cuts to tax incentives for developers are forecast to reduce near‑term clean investment and leave the electricity system more exposed to fossil fuels.
Natural gas remained the largest single source of U.S. electricity, but higher gas prices in 2025 prompted a shift back to coal in many regions. Coal‑fired electricity output from January through November rose 13% year‑on‑year — the biggest jump in three years — contributing to a rise in power‑sector emissions. Emissions from U.S. coal and gas plants reached 1.526 billion metric tons of CO2 in January–November, up 3% from the same period in 2024 and the highest level since 2021.
With average U.S. natural gas prices through 2025 roughly 50% above their 2024 level, many utilities are expected to lean further on cheaper coal to meet winter demand, risking higher emissions into 2026 unless policy or market conditions change.
Battery Boom and Quiet Progress
Despite the coal rebound, 2025 also saw record deployment of battery storage in the United States. Total installed battery capacity surpassed 39 gigawatts in 2025, a 43% increase from 2024, according to Cleanview data. Rapid storage buildout is already reshaping peak‑hour electricity flows in large markets.
In California, the California Independent System Operator (CAISO) now uses batteries to supply roughly 15%–18% of electricity during evening peak periods, reducing reliance on gas and other conventional sources. In Texas’ ERCOT market, batteries supplied about 3% of peak demand in 2025 — a modest share but a sharp rise from near zero the previous year.
Solar generation also posted record shares in many countries. In 2025, at times Bulgaria, Pakistan, Hungary and Poland sourced around 20% or more of their electricity from solar farms, cutting costs and emissions. Solar's footprint is expected to expand further in 2026, setting new local records even as some major economies slow their clean‑energy policies.
What To Watch In 2026
- Whether China’s clean‑power expansion continues to outpace fossil fuels and how export volumes evolve.
- How U.S. policy, gas prices and utility investment choices shape coal and gas generation next winter and beyond.
- The pace of battery and solar additions worldwide and their impact on peak demand, emissions and system costs.
Author: Gavin Maguire, Reuters columnist. Reporting by Gavin Maguire; Editing by Marguerita Choy.
The opinions expressed are those of the author.
