Renewables Block Coal Comeback During Global Energy Crisis

When the Strait of Hormuz blockade cut off a fifth of global gas supplies this spring, energy experts braced for the worst. Instead, the world got a glimpse of its clean energy future.

Coal-fired power generation stayed flat in March even as oil and gas prices skyrocketed, according to new data from the Centre for Research on Energy and Clean Air. Outside of China, coal use actually dropped by 3.5 percent.

Total fossil fuel power generation fell by one percent compared to last year. Gas-fired generation dropped by four percent as renewables stepped in to fill the gap.

Solar power generation jumped 14 percent last month across major power markets. Wind energy climbed eight percent during the same period.

The numbers cover the world's biggest electricity users including China, the US, the EU, and India. Together these nations account for 87 percent of global coal power and more than 60 percent of gas-fired generation.

Solar alone saved Europe €3 billion in March by reducing the continent's need for expensive imported fuels. The solar and wind capacity added globally in 2025 is enough to replace the lost Hormuz gas supplies twice over.

Seaborne coal transport fell three percent globally, hitting its lowest level since the height of the COVID pandemic in 2021. No coal plants returned to service or delayed their closure in any country during March.

The Bright Side

This wasn't supposed to happen. When Russia's invasion of Ukraine disrupted gas supplies in 2022, many predicted a permanent return to coal. Instead, Europe accelerated its clean energy transition and recorded its sharpest drop in coal use and emissions in 2023.

The same pattern is playing out now, but faster. Countries like France and the United Kingdom are speeding up solar installation and heat pump adoption to cut dependence on imported fuels.

The economics tell the story. Coal was already running at full capacity before the crisis because it cost more than gas even in normal times. With transport costs soaring, investing in coal makes even less financial sense than generating and storing renewable energy.

The gradual retirement of coal plants in many countries means ramping up production quickly isn't even possible anymore. The infrastructure is disappearing.

Governments are taking notice. Later this month, world leaders will gather in Colombia for the First International Conference on the Just Transition Away from Fossil Fuels to discuss accelerating the shift to clean energy.

The blockade that was supposed to send the world running back to coal instead proved renewables are ready to power us through a crisis.