Top 5 Renewable Energy Sources Reshaping The Global Economy In 2026

Renewable energy is overtaking coal to become the world's top source of electricity in 2026 due to extremely rapid growth in wind and solar output, which topped 4,000 terawatt hours (TWh) in 2024 and will pass 6,000 TWh by 2026. The share of global electricity generation from wind and solar combined is projected to reach nearly 20% in 2026, up from just 1% in 2005. This transition is being driven by both technological advances and economic factors—renewable power is now simply cheaper to build and operate than coal or gas in many markets. The decline of coal is particularly pronounced in China and the EU, which will only be partially offset by increases in other regions.

Global clean energy investment reached approximately USD 2.2 trillion in 2025, with renewables alone accounting for around USD 780 billion—roughly double the amount directed toward fossil fuels. Solar leads the transition with investment in utility-scale and rooftop solar expected to reach USD 450 billion in 2025. This investment shift reflects a fundamental change in energy strategy: solar, wind, and hydropower are now firmly embedded in national energy strategies and corporate decarbonization plans across major economies. Asia is set to dominate renewable energy investment in 2026, with China remaining the world's biggest renewable market, having exceeded USD 625 billion in clean energy investment in 2024 alone. The investment race has become a competition among nations to build manufacturing capacity and supply chains, not just deploy renewable infrastructure.