Global fossil fuel consumption in March fall amidst Hormuz blockade

Mumbai: Global power generation from fossil fuels fell in March since the start of the blockade of the Strait of Hormuz, with the fall in gas-fired generation offset by large increases in solar and wind power, rather than coal.

The power generation dataset prepared by Centre for Research on Energy and Clean Air (CREA) for the analysis covers countries that disclose near-real-time data. The dataset covers 87 per cent of global coal power generation and over 60 per cent of gas-fired power generation.

Total power generation from fossil fuels in countries with near-real-time data fell 1 per cent year-on-year, with coal-fired generation flat and gas-fired generation falling 4 per cent.

The dataset covers the world’s largest power markets: China, the U.S., the EU, and India, among others. Seaborne coal transport volumes fell 3 per cent, to the lowest levels since 2021. The data contradicts widespread expectations that coal power generation would rise in response to the crisis.

Seaborne coal transport volumes fell 3 per cent, to the lowest levels since 2021. The data contradicts widespread expectations that coal power generation would rise in response to the crisis.

In a press statement, Lauri Myllyvirta, Lead Analyst at CREA, said: “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.”

The record buildout of solar and wind in 2025 helped reduce the need for power generation from fossil fuels and mitigate the impact of the Hormuz blockade.

Outside China, in countries with real-time electricity data, coal-fired power generation fell 3.5 per cent and gas-fired power generation fell 4.0 per cent in March. This was due to increases in solar power (14 per cent) and wind (8 per cent) generation. Hydropower generation also saw a small increase (2 per cent), but this was more than offset by a drop in nuclear power generation.

Coal-fired power generation fell in the U.S., India, EU, Turkey, and South Africa.

In China, power generation from coal increased 2 per cent in March, according to weekly surveys by China Electricity Council, with generators on the coast shifting from gas to coal in response to the high prices. Coal-fired generation was still significantly below 2024 levels, however, as March 2025 recorded a steep 6 per cent drop.

Total electricity generation growth in the countries with data turned from negative in January-February to positive in March, giving no indication that the Hormuz crisis affected power demand.