Record global electricity demand last year was met entirely by low-carbon sources, resulting in fossil fuels generation being substituted rather than supplemented, the Energy Institute’s ‘Statistical Review of World Energy 2026’ shows.

Fossil generation fell overall with renewables and hydro overtaking coal as the largest source of electricity generation, the review, produced in partnership with Ember and in collaboration with Kearney and KPMG, states.

Solar generation expanded by 30% worldwide, while battery capacity grew at 66%, reinforcing the position of the two technologies as the fastest-scaling clean technologies.

The review, which marks its seventy-fifth anniversary this year after the Energy Institute took over its publication from BP in 2023, also concludes that global electrification has reached a tipping point, with demand continuing to grow faster than total energy supply.

Total global electricity generation increased by 3% last year to reach 32 202 TWh, with renewables growth of 861 TWh exceeding the absolute growth in electricity demand in 2025 of 855 TWh, leading to a fall in fossil power.

Electricity demand rose 3% year-on-year, underpinned by new drivers such as electric vehicles and data centres.

China recorded the fastest growth of any major economy at over 5%, adding electricity demand equivalent to the entire consumption of Germany in a single year.

The review indicates that consumption from data centres was reported at 788 TWh, 40% of which arose in the US.

Overall global energy demand also rose 1.7%, as did global emissions by 1.1%, with the US recording a 3.2% increase in emissions, the largest among major economies, driven by a 13% rise in coal generation.

China’s emissions grew by 0.3%, while India’s rose 0.9%.

“This year’s review shows an energy system at a tipping point: record demand, a historic breakthrough in low-carbon electricity, and sharply diverging regional pathways,” Energy Institute CEO Dr Nick Wayth argues.

“We see encouraging substitution of fossil fuels in power, yet global emissions continue to rise and energy security pressures intensify.

“These findings underline the urgency of accelerating efficiency, electrification and investment in clean technologies worldwide,” Wayth adds.

The Energy Institute also argues that global energy choke points are shifting towards critical minerals, such as copper and lithium.

This, despite recent disruptions to the supply of fossil fuels when shipping in the Strait of Hormuz was blocked after the US and Israel attacked Iran in late February.

Supply pressures were eased, the institute states, by the 4.8% growth in oil production in the Americas in 2025.

The Americas now produce 20% more oil than the Middle East, with a 4% increase in US oil and gas production in 2025; a flip from two decades ago when the Middle East produced 20% more.