May 27, 2026 - Evidence is continuing to mount that we’re in an era of global energy addition—not transition. While wind, solar and grid-scale battery capacity continue to grow, so too is coal capacity. Nations are adding new energy resources while retaining — and in many cases expanding — coal generation to meet rising demand, support industrial growth and reinforce grid reliability.

A new Global Energy Monitor report underscores that reality. It finds that global coal power capacity grew 3.5% in 2025, reaching its highest level since 2015.  Coupled with analysis from the International Energy Agency showing overall global coal demand likely set another record in 2025, and the ongoing pivot to coal driven by the war with Iran, coal’s position at the heart of the global energy system remains rock solid. 

Additions Growing

According to the Global Energy Monitor report, 32 countries proposed or built new coal plants last year with China and India dominating global coal capacity additions.

India recorded nearly 28 gigawatts of new and reactivated coal plant proposals in 2025 – a major commitment from the world’s most populous nation where coal demand is expected to be unprecedented this summer.

India’s government has also set a goal of adding 100 gigawatts of new coal capacity over the next seven years. For a country facing rapidly rising electricity demand, expanding industrial needs and continued economic growth, coal remains irreplaceable to ensuring affordable and reliable power.

China’s coal buildout is even larger. New and reactivated coal power projects surged to nearly 162 gigawatts in 2025, a record high. In total, China now has more than 500 gigawatts of coal-fired capacity in development.

China is also rapidly expanding renewable energy, but it is pairing that growth with coal capacity to provide system flexibility and energy security. Coal plants are increasingly being used not only for baseload power but also as a reliability backstop to manage the integration of variable capacity. It’s a model developing economies are studying closely as they try to avoid the energy insecurity and crippling costs of Europe’s energy policy missteps. And just as important as new coal additions are the slowing pace of plant retirements in advanced economies. 

Retirements Slowing

The same dynamics driving coal capacity additions are also now keeping existing coal plants online longer. Nearly 70% of coal plants scheduled to retire in 2025 did not do so. That includes 69% of scheduled retirements in the E.U. and 59% in the U.S. These delays – and outright cancellations – reveal a fundamental reality: when grids are under stress and affordability and security are paramount, policymakers and utilities turn to coal.

What the Global Energy Monitor report captured for 2025 is now being reinforced by a strong geopolitical tailwind. The war in Iran and disruptions to global oil and gas markets have pushed energy security back to the top of national agendas. In an era that was supposed to be defined by a move away from coal, should anyone be surprised if global coal demand reaches another record high in 2026?