Global fossil power fell in March 2026 despite continued Hormuz blockade: Report

Global power generation from fossil fuels fell in March 2026, defying widespread expectations that the ongoing blockade of the Strait of Hormuz would trigger a massive resurgence in coal use. According to a new report from the Centre for Research on Energy and Clean Air (CREA), a record buildout of solar and wind capacity in 2025 provided a critical buffer, allowing clean energy to mitigate the impact of the fossil fuel crisis.

Fossil fuel power generation fell by about 1% in March 2026, compared to the same period last year. While gas-fired generation fell by 4% due to supply constraints, the gap was filled by rapid growth in renewables rather than a shift back to coal. 

Outside of China, coal power generation fell by 3.5%. The analysis also examined seaborne coal trade data and found that global seaborne coal trade volumes for March were the lowest since 2021, found the report.

Clean energy to the rescue

The crisis is accelerating a structural shift toward clean technology. The report found that nations across the globe are responding with aggressive new targets to bypass fossil fuel volatility.

India has set a trajectory to bid out 50 GW of renewable energy capacity annually through FY 2027-28, while Indonesia formed a new ministerial task force to implement a 100 GW solar vision, with 13 GW expected this year. Vietnam updated its energy plans with a move away from coal, projecting that renewables will account for 47% of installed capacity by 2030. In Africa, Egypt plans to add 2,500 MW of renewable capacity before the upcoming summer.

There was a 15% surge in solar power and an 8% increase in wind generation. The report noted that the solar and wind capacity added in 2025 alone now generates twice as much electricity as all the LNG that previously passed through the Strait of Hormuz. In 2025, approximately 19% of global LNG trade — around 112 billion cubic meters — was transported through the now-blocked strait.

Major economies including the US, India, the EU, Turkey, and South Africa all recorded drops in coal-fired power. In the US and India, the expansion of solar power was the single largest factor displacing fossil fuels. 

While China saw a 2% increase in coal generation as coastal plants switched from expensive gas, its overall coal use remained significantly below 2024 levels. The only significant increases in coal use were seen in Japan and South Korea due to weak nuclear output rather than the global energy crisis, according to the report.

According to CREA, the current fossil fuel crunch has made coal and gas more expensive relative to clean energy and storage, further discouraging long-term investment in fossil infrastructure. The sustained result of the crisis appears to be a permanent acceleration of the global energy transition.

“The record growth in global clean power generation, particularly solar and wind, has helped ease the impact of the latest fossil fuel crisis. The increase in clean electricity offset the fall in gas-fired power generation following the Hormuz blockade, preventing a jump in coal-fired power generation. To mitigate the effects of the current crisis and make such recurring global emergencies a thing of the past, it’s essential to use this moment to accelerate the global energy transition,” said Lauri Myllyvirta, lead analyst at CREA.