While fossil fuels still dominate much of the global economy, new data suggests the transition toward renewable energy is accelerating rapidly – and the United States risks falling behind Europe and China in the race to build the next generation of energy systems.
A new analysis published by The Better News argues that the global energy transition is already well under way in the electricity sector, with the European Union and China leading large-scale expansion of renewable power generation.
The article, based on analysis by economist Nikolaus Kowall and originally published by Austrian outlet Kontrast.at, says the shift toward renewable electricity is progressing faster than many people realize.
Globally, more than 90 percent of newly built power plants are now based on renewable energy, according to the article.
China alone accounts for roughly two thirds of all new renewable energy capacity currently being added worldwide.
Meanwhile, nearly half of all electricity generated in the European Union now comes from renewable sources such as wind, solar and hydropower.
The article contrasts that momentum with developments in the United States, where renewable energy expansion accelerated under former President Joe Biden but has reportedly slowed again under President Donald Trump.
“The European Union, meanwhile, is clearly the global frontrunner in the energy transition,” the article states.
Despite growing renewable capacity, fossil fuels still dominate overall global energy consumption, accounting for more than 80 percent of total energy use in 2023.
However, the article argues that electricity generation is becoming the critical battleground in the global energy transition because transportation, heating and industrial systems are increasingly expected to shift from oil and gas toward electricity.
“Electricity is therefore the central pillar of the energy transition,” the article says.
The report notes that renewable electricity generation has expanded rapidly over the past decade as technology costs have fallen sharply.
Since 2010:
- solar power costs have dropped by roughly 85 percent;
- wind energy costs have fallen by more than 50 percent; and
- global wind and solar electricity generation has doubled within five years.
The article also notes that oil’s share of global energy consumption fell below 30 percent in 2024 for the first time.
China’s role in the transition is described as particularly significant.
Although China continues building some coal-fired power stations for energy security reasons, more than 80 percent of its newly installed electricity capacity in 2024 reportedly came from renewable energy sources.
The article argues that China is now driving much of the global energy transformation despite remaining heavily dependent on fossil fuels overall.
The European Union has also significantly reduced coal and gas use in electricity generation.
According to the analysis:
- electricity generation from gas in the EU has fallen by roughly 25 percent since 2019;
- coal generation has dropped by about 40 percent; and
- wind and solar power have expanded rapidly.
The article says the energy transition is increasingly being viewed not only as a climate issue but also as a question of economic resilience and geopolitical independence.
Countries that rely less on imported fossil fuels may gain greater political and economic autonomy as global trade tensions and international conflicts continue to intensify.
“At a time when global trade is becoming less reliable and geopolitical conflicts dominate world affairs, autonomy is increasingly valuable,” the article states.
While the transition away from fossil fuels remains incomplete, the report argues that a large-scale global energy shift is already happening – particularly in electricity generation – and that the pace of change may accelerate further in coming years.
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