Coal Maintains Dominance Despite Growing Renewable Energy
The world's energy landscape is more complicated than expected. Despite the rapid growth of wind and solar power, coal remains the leading source of electricity globally. According to the International Energy Agency (IEA), coal-fired power plants will generate 10,974 terawatt-hours (TWh) in 2026, accounting for nearly one-third of the world's total electricity production.
Natural gas comes second with 6,976 TWh, followed by hydropower at 4,536 TWh. The growth of renewable energy is accelerating, but coal still generates more electricity than any other source. In fact, coal will produce nearly as much electricity this year as natural gas and hydropower combined.
The ongoing U.S.-Iran war has led to a surge in global gas prices, making coal more competitive for power generators. As a result, the IEA now expects coal-fired generation to rise instead of decline. This development poses challenges for the global energy transition, as renewables will need to overtake coal by 2026 to meet growing electricity demand.
China and India are driving this trend, with coal supplying more than half of Chinese electricity and nearly 71% of Indian electricity. These countries' push for cleaner sources is driven not only by environmental concerns but also by the need to meet rising demand.