Fossil Fuel Power Generation Falls Amid Hormuz Crisis, Clean Energy Rises

In the US and India, solar power growth was the single largest driver of the fall in fossil power generation| India News

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Global power generation from fossil fuels fell in March following the Strait of Hormuz closure, a Helsinki-based nonprofit think tank Centre for Research on Energy and Clean Air (CREA) analysis revealed.

The analysis, which covers 87% of global coal power and over 60% of gas-fired power generation, showed that solar and wind power increases 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, while improved operation of nuclear and hydropower plants contributed to the decline in South Africa and Turkey.

Seaborne coal transport volumes fell 3%, to the lowest levels since 2021, and coal-fired power generation fell 3.5% outside China.

India improved its ranking to third globally in renewable energy installed capacity, after China and the US, and achieved a non-fossil capacity addition of 55.3 GW during FY 2025–26.

The CREA analysis highlighted the importance of rapid scale-up of clean energy for the global energy system, citing the addition of 510 GW solar and 160 GW wind capacity in 2025.

India's government announced a record 52,537 MW of generation capacity was added in the financial year 2025–26, with non-fossil fuel-based capacity now accounting for 52.25% of the total installed capacity.