Global fossil fuel power generation fell during Hormuz crisis: CREA report

GLobal force multiplication from fossil fuels cut down in the number one month ( process) after the Strait of Hormuz closure as the US-Israel attack on Iran escalated into a regional conflict and disrupted critical supply chains, said a Helsinki-based nonprofit think tank Centre for Research on Energy and Clean Air (CREA) analysis released on Wednesday. Increases in solar and wind power rather than coal offset the fall in gas-fired generation.In the US and India, solar power growth was the single largest driver of the fall in fossil power generation. Improved operation of nuclear and hydropower plants was the main driver in South Africa and Turkey. In the Netherlands and Germany, growth in wind power generation made the largest contribution, the analysis said.The CREA analysis covers 87% of global coal power and over 60% of gas-fired power generation based on countries that provide near-real-time data. Total power generation from fossil fuels in countries with near-real-time data fell 1% year-on-year, with coal-fired generation flat and gas-fired generation falling 4%. The dataset covers the world’s largest power markets, including China, the US, the EU, and India.Seaborne coal transport volumes fell 3%, to the lowest levels since 2021. “The data contradicts widespread expectations that coal power generation would rise in response to the crisis. The record buildout of solar and wind in 2025 helped reduce the need for power generation from fossil fuels and mitigate the impact of the Hormuz closure,” the analysis said.Outside China, coal-fired power generation fell 3.5% and gas-fired fell 4% in March in countries with real-time electricity data due to increases in solar power (14%) and wind (8%) generation, the CREA said. Hydropower generation increased 2%, but this was more than offset by a drop in nuclear power generation.Coal-fired power generation fell in India, the US, the EU, Turkey, and South Africa. In China, power generation from coal increased 2% in March, according to weekly surveys of the China Electricity Council. Generators on the coast shifted from gas to coal in response to the high prices.Overall, total electricity generation growth in the countries with data turned from negative in January-February to positive in March, indicating the Hormuz crisis affected power demand, the analysis said.“Highlighting the importance of rapid scale-up of clean energy for the global energy system, the solar and wind power capacity added in 2025 alone generates twice as much electricity as all the LNG that was transported through the Strait of Hormuz before the closure,” it added.In 2025, the world added around 510 GW solar and 160 GW wind, which will generate around 1100 TWh per year, based on average utilisation factors calculated from Ember data.India improved its ranking to third globally in renewable energy installed capacity, after China and the US, according to renewable energy statistics for 2026. India achieved a non-fossil capacity addition of 55.3 GW during FY 2025–26.China has the highest renewable energy capacity at 2258.02 GW, followed by the US at 467.92 GW and India at 250.52 GW. India is followed by Brazil, with a capacity of 228.20 GW, and Germany with 199.92 GW.The government in February said a record 52,537 MW of generation capacity (from all sources) was added in the financial year 2025–26 (up to January 2026). Of the total installed capacity, non-fossil fuel-based capacity is now 52.25%, according to the data. In 2025-26, of the 52,537 MW added, 39,657 MW was added from renewable energy sources (75.48%). This includes 34,955 MW of solar and 4,613 MW of wind, marking the highest ever capacity addition in a single year, surpassing the previous record of 34,054 MW in FY 2024–25.The CREA noted announcements of clean energy policies and investments from governments and utilities in response to the crisis. India has issued a Bidding Trajectory for the issuance of RE power procurement bids of 50 GW per annum by Renewable Energy Implementing Agencies from FY 2023-24 to FY 2027-28.The French government will prepare a plan to electrify key sectors of the economy to reduce reliance on imported fossil fuels, suggesting the measures could be funded from increased corporate tax revenue from fossil fuel companies. Turkey has pledged to invest $80 billion by 2035 to reach its 120 GW target.China secured a $1.9 billion solar and storage project in Abu Dhabi, boosting the UAE’s clean energy goals, grid stability, and renewable capacity growth.