The Shift in Global Power Generation: Renewables Surpassing Coal and What It Means for the Grid

The global energy landscape is undergoing a transformation. A milestone has been reached in recent months: renewable sources of electricity generation have overtaken coal for the first time. This marks a fundamental pivot in how power is produced, distributed, and managed. The implications of this shift stretch across engineering, grid stability, infrastructure investment, and long-term planning. This article explores the context behind this development, the technical and operational challenges it presents, and what power system engineering must focus on going forward.

Context: Why Renewables Are Gaining Ground


Several driving forces have aligned to push renewable energy past coal in electricity generation. First, renewable technologies—especially solar photovoltaics (PV) and wind—have seen rapid deployment. Costs for solar modules, wind turbines, installation, and maintenance have steadily fallen, encouraging widespread adoption in many countries.

Second, concerns about climate change, emissions, and air quality have led many governments to enact policies that favour low-carbon energy sources. Incentives, subsidies, regulatory frameworks, and international agreements have raised the priority of renewables. At the same time, coal, which was until recently one of the mainstays of baseload power, has faced increasing scrutiny over its environmental footprint, with many coal plants reaching the end of their technical or economic lives.

Third, electricity demand itself is rising, including demand for reliable and clean electricity, due to industrial expansion, electrification of transport, data center load, and increasing digitalization. Renewables have not only met new demand in many cases, but sometimes the increase in renewable generation has outpaced the increase in demand. This has allowed renewables to capture a larger share of the generation mix.

Technical and Operational Implications for the Grid

The shift from coal toward renewables changes many assumptions under which traditional power systems were designed. Coal plants generally provide steady, controllable power output. They offer inertia, predictable generation, and are capable of serving as baseload. Renewables, especially solar and wind, are variable and weather-dependent. Their output fluctuates on shorter timescales—within hours, between day and night, and in response to weather events.

To accommodate a higher share of renewables, power engineers need to address several technical and operational challenges:

Grid Stability and Inertia

Traditional grids rely on mechanical inertia provided by large rotating machines (coal, gas, hydro turbines) to smooth out disturbances and maintain frequency. As coal plants retire or reduce output, inertia is reduced, making the grid more sensitive to sudden changes in load or generation. Engineers must compensate via synthetic inertia, fast response storage, or grid-forming inverters.

Energy Storage Integration

Energy storage becomes crucial to balance supply and demand. Storage systems—batteries, pumped hydro, thermal storage—act as buffers, absorbing excess generation when renewable output exceeds demand, and discharging when it falls short. Proper sizing, deployment, and integration of storage are critical. Storage must be reliable, cost effective, and fast in response.

Forecasting and Demand Management

Accurate forecasting of renewable output (especially wind speed, solar irradiance) over various time horizons becomes essential. Forecast errors translate into operational costs or reliability risks. Demand management strategies—such as demand response, flexible loads, load shifting—help smooth demand curves so that supply and demand match more closely despite variability.

Grid Flexibility and Modernisation

Transmission and distribution infrastructure must become more flexible and smarter. This includes better control systems, more sensors, real-time monitoring, enhanced automation, and advanced power electronic devices. Also, interconnection between regions matters more: sharing excess renewable energy between regions helps mitigate local variability.

Regulatory & Market Structures

Grid operators and utilities must adapt market rules to handle variable generation, storage, and auxiliary services. Markets need to reward flexibility, fast ramping capability, frequency regulation, and capacity to absorb variability. Tariffs, incentives, and pricing mechanisms must align to the technical needs of a renewable-dominant grid.

Engineering Innovations Supporting the Transition

The move toward renewables overtaking coal has spurred engineering innovation. Some areas seeing active development include:

Improvements in solar cell technology, module design, and materials that increase efficiency, durability, and reduce cost.  Turbine designs for wind that are larger, have flexible blades, better aerodynamic control, and smart control systems to adjust to varying wind conditions.

Advances in energy storage technologies: batteries with higher energy density, longer cycle life, faster charge/discharge; control systems that optimise discharge durations for various grid services.  Grid control systems employing digitalisation, data analytics, and AI to predict load and generation, optimise operations, and detect faults.

Development of grid-forming inverters that can maintain voltage and frequency stability in low inertia grids.  More use of distributed energy resources (DERs) and virtual power plants, which aggregate many small generation or storage units to act collectively as a flexible resource.

Challenges and Risks

While the shift is positive in many respects, there are risks and challenges to manage carefully.

Overreliance on intermittent renewables without sufficient balancing capacity can lead to reliability issues, especially during extreme weather, seasonal lulls, or unexpected generation drop.

Storage systems are expensive to scale, and there are supply chain, material, and site constraints. The environmental impacts and lifecycle issues of storage technologies need attention.

Grid infrastructure, especially in many developing regions, may lag in terms of capacity, resilience, and flexibility. Upgrading physical transmission networks is costly and time-consuming.

Regulatory frameworks and market designs may lag behind technological realities, creating misalignment of incentives. For example, if markets do not compensate for fast ramping or auxiliary services, then needed investments may be delayed.

Maintenance, durability, and lifecycle management of renewable systems and associated infrastructure require new engineering standards and practices.

What Engineers and Power Systems Must Do

To ensure that the transition is smooth and sustainable, engineering efforts should focus on several strategic areas:

Holistic planning of generation, storage, transmission, and demand side together rather than treating each separately. Engineers should adopt integrated system-level thinking.

Prioritize investments in grid flexibility: both physical (storage, transmission capacity) and operational (control systems, real-time monitoring, forecasting).

Push for deployment of technologies that support stability in low inertia systems: synthetic inertia, fast response inverters, hybrid systems combining renewables and dispatchable sources in clever ways.

Encourage research into new materials and techniques for both generation and storage to reduce costs and increase lifetimes.  Engage with policy makers to ensure regulatory structures, market designs and incentives are aligned with technical needs.

Focus on resilience: infrastructure must be designed to cope with climate risks, extreme events, cyber threats, and supply disruptions. 

Looking Ahead: Implications and Future Directions

The milestone of renewables surpassing coal is likely not an end, but a beginning. It suggests several trends that will shape the future of power generation and grid engineering:  Renewables will likely continue to expand their share of generation. Less variable sources (e.g. certain types of hydro, potentially geothermal or forms of nuclear) may play supporting roles.

Energy storage will play a more central role, not just for smoothing daily variability, but for seasonal storage in some regions.  Flexible and smart grids will become more standard everywhere. The division between generation, transmission, distribution, storage, demand will blur as systems become more integrated.

New technologies, including advanced nuclear reactors, fusion (if they prove viable), and hydrogen-based power generation may start contributing meaningfully in certain regions.  Decentralization may increase: more local generation, microgrids, distributed storage, and smaller scale systems could reduce stress on large grids and reduce transmission losses.

Engineering education and workforce needs will change: more emphasis on power electronics, control systems, data analytics, forecasting, systems engineering, materials science.

Conclusion

The overtaking of coal by renewable sources in global power generation marks a major shift in the energy era. It is not merely symbolic: it reshapes the technical, operational, and economic realities of power systems. For electrical engineers, power system planners, regulators, and infrastructure providers, this shift demands a rethinking of how grids are designed, how they respond to perturbations, and how investments are made. The challenge is large, but the opportunity to build cleaner, more resilient, and more flexible power systems is greater still. The next decade will be critical as many decisions made now will determine whether power systems globally can adapt efficiently to a world powered chiefly by renewables.