For the first time in history, renewable electricity has overtaken coal as the world’s leading source of power. According to a recent report by UK-based think tank EMBER, renewables accounted for 34.3 per cent of global electricity generation in the first half of 2025, surpassing coal’s 33.1 per cent share. This is a crucial moment in the history of global energy transition, a clear indication that the world is entering a new era of cleaner, more sustainable growth.
Coal symbolised industrial progress and economic might for decades. Now, renewables are driving the same progress but with far-reaching benefits, such as cleaner air, more resilient economies, and millions of new jobs.
Global drivers of change
Behind this transformation lies a wave of decisive policy action and technological innovation. The International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) have developed a robust ecosystem to facilitate the global clean energy transition and help each country achieve net-zero goals.
China’s 14th Five-Year Plan on Renewable Energy, the EU’s REPowerEU and Green Deal Industrial Plan, the United States’ Inflation Reduction Act, and India’s Long-Term Low-Carbon Development Strategy(LT-LEDS) have collectively amplified global investment in clean energy infrastructure and manufacturing. These initiatives led to record growth in solar and wind capacity, driven down costs, and created strong domestic industries around renewable technologies.
China and India, the two emerging countries, have transitioned into a green future by adopting technological innovation, creating policy frameworks, and capitalising on international collaboration. China’s leadership in electric vehicle manufacturing and battery storage, and India’s solar revolution, are driving global progress.
India’s leadership in the energy transition
India’s story within this global transformation stands out for its ambition and scale. The country recorded its largest-ever increase in wind and solar power in the first half of 2025, an example of its sustained focus on clean energy expansion. The country has already achieved 50 per cent renewable energy-based installed capacity, while reducing its emissions intensity by 36 per cent.
Flagship schemes of the Government of India, such as PM-KUSUM and PM Suryaghar-Muft Bijili Yojana (SGMBY), are further strengthening energy self-reliance, enhancing rural livelihoods, and promoting decentralised clean energy adoption.
Also, the government’s recent GST rationalisation for renewable energy components from 12 per cent to 5 per cent has made renewable power more affordable and attractive to consumers. It signals India’s commitment to building a resilient local supply chain and advancing towards a future where clean energy drives both economic growth and energy security.
Beyond domestic achievements, India has also demonstrated global commitment through initiatives such as the International Solar Alliance (ISA) to mobilise international cooperation in scaling solar energy access. Recently, the government also collaborated with ISA to extend the PM-KUSUM model for similar initiatives in Africa, highlighting the potential for South-South collaboration in clean energy deployment.
Most importantly, India has adopted a revolutionary initiative, Mission LiFE (Lifestyle for Environment), to focus on adaptation strategies for systemic transformation by changing people’s behaviour.
A just transition: Jobs, technology, and inclusion
The clean energy transition has also emerged as a story of opportunity. The renewable energy sector employed 16.2 million people globally in 2023, with over 1.02 million jobs in India. The sector has the potential to create jobs in manufacturing, construction, operations, maintenance, and offer more inclusive and sustainable livelihoods, especially in emerging economies.
However, the countries need to address various challenges: from grid infrastructure bottlenecks to energy storage and integration gaps. Here, technological innovation and collaborative action can play a decisive role.
Technological innovation will define the next leap in the clean energy transition. The Digitalisation of Utilities for Energy Transition (DUET) initiative is transforming India’s power distribution network into a smart, AI-driven system.
By creating a digital twin of every grid asset in Jaipur DISCOM, covering five million assets, DUET enables predictive maintenance, real-time loss detection, and better integration of decentralised renewables at the local level. Early outcomes show savings exceeding Rs 190 crore ($ 23 million) and faster consumer services through automation. DUET lays the foundation for a digital public infrastructure for power, paving the way for peer-to-peer trading, real-time demand response, and a future Digital Energy Grid (DEG) that makes India’s clean energy transition more efficient and equitable.
Seizing the decisive decade
The world is at a defining crossroads. With just five years left to meet the 2030 global climate and development goals, the world must accelerate renewable energy deployment, democratize access, and deepen cooperation.
India and other emerging economies are showing that green growth and equitable development can go hand in hand. The main challenge is to sustain this momentum and ensure that this historic shift becomes the foundation of a cleaner, more inclusive future for all.
The author is Vice President - India, Global Energy Alliance.
The opinions expressed in this article are those of the author and do not purport to reflect the opinions or views of THE WEEK.
