Image Source: Getty Images
Source: CEA
On 14 July 2025, India announced that it had achieved the target of 50 percent non-fossil fuel power generating capacity five years ahead of its 2030 target under the Paris Agreement, signalling accelerating momentum in the country's clean energy transition. This led to headlines such as “5 years ahead of target, India gets 50 percent of power from clean sources” and “America is slipping behind India’s clean power boom.” The capacity for power generation from non-fossil fuels may be 50 percent, but coal, with a capacity of about 45 percent (including lignite), generates 75 percent of the power consumed in India. The share of coal in power generation has been consistent at about 75 percent since 2015, when the Paris Agreement was signed.
According to the CEA (Central Electricity Authority) on 30 June 2025, the share of non-fossil fuel installed capacity for power generation in India at 50.7 percent exceeded the share of installed capacity for fossil fuels, which was 49.92 percent. The total installed capacity by the end of June 2025 was 484.818 gigawatt (GW). Of this 221.9 GW, or 45.77 percent, was coal (including lignite) -based, and 201.32 GW, or 4.15 percent, was gas-based. Overall, fossil fuel-based power-generating capacity was 49.92 percent. Renewables, including solar and wind, accounted for 233.99 GW or 38.08 percent of capacity; hydropower accounted for 49.378 GW or 10.18 percent of installed capacity and nuclear power accounted for 8.7 GW or 1.8 percent of power generation capacity. Overall installed capacity for renewables was 242.77 GW.
As a party to the United Nations Framework Convention on Climate Change (UNFCCC) and its Paris Agreement, India submitted the following energy related Nationally Determined Contribution (NDC) in 2015 (i) reduce the emissions intensity of its GDP by 33 to 35 percent by 2030 from 2005 level; and (ii) achieve about 40 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
In January 2021, India’s non-fossil fuel power generating capacity of 145.389 GW was about 38.5 percent of the total installed power generating capacity of 377,259 MW. Out of the total non-fossil fuel installed capacity, new renewables such as solar, wind, small hydro-power, biomass and others accounted for over 63.6 percent of capacity, while large hydropower at 31.7 percent and nuclear at 4.6 percent accounted for the rest of the capacity.
The two original NDC targets were achieved well ahead of time. In October 2023, the cumulative electric power installed capacity from non-fossil fuel-based energy resources was 186.46 GW, which was 43.81 percent of the total cumulative electric power installed capacity. As per the third national communication submitted by India to the UNFCCC in December 2023, the emission intensity of its GDP was reduced by 33 percent between 2005 and 2019.
In 2015, the Carbon Action Tracker (CAT) observed that India would overachieve its energy and emission-related NDC targets for 2030 by a wide margin. CAT rated India’s NDC pledges as ‘medium’, suggesting that they were in line with the effort-sharing approaches that focus on equal cumulative per person emissions, but also observed that they were at the least ambitious end of what would be a fair contribution. CAT commented that this was not consistent with limiting warming to below 2°C unless other countries make much deeper reductions and comparably greater effort. In early 2020, CAT rated India’s climate targets and policies as “highly insufficient,” indicating that India’s climate policies and commitments were not consistent with the Paris Agreement’s 1.5°C temperature limit. Using strong language, the CAT report declared that India must increase its unconditional NDC target to significantly reduce the speed of emissions growth and set an ambitious conditional target to curb its expected growth in emissions from its dependency on fossil fuels and begin the shift to a net-zero economy with international support.
In August 2022, India updated its NDC to (i) reduce emissions intensity of its GDP by 45 percent by 2030 from 2005 level, and (ii) to increase the target on cumulative electric power installed capacity from non-fossil fuel-based energy resources to 50 percent by 2030.
Following the updating of targets, CAT commented that while the targets were stronger on paper, India would over-achieve them with its current level of climate action and thus the targets will not drive further emissions reductions. The CAT’s rating of India’s NDC against its fair contribution did improve by one category to “insufficient” with the update, but its overall CAT rating remained unchanged at “highly insufficient”.
According to CAT, India replaced its unambitious first mitigation targets with targets close to its existing level of climate action. CAT estimate for India’s 2030 emissions based on current policies was consistent with a 49-53 percent reduction in emissions intensity below 2005 levels and a non-fossil capacity target of more than 60 percent. CAT concluded that much deeper emissions cuts are needed by 2030 to put India on a 1.5°C pathway, which it will require climate finance to achieve.
India was deliberately not ambitious in setting its NDCs for the Paris Agreement because the government did not aim for a “temperature goal” but a “best effort” path keeping in mind the development imperatives of the country.
Demand Growth
According to the State Load Dispatch Center (SLDC), Delhi, Delhi’s peak power demand was 6,015 megawatt (MW), the highest in April in the last three years. In 2023 and 2024, Delhi’s power demand did not cross 6,000 MW in April. As per the BSES, its power distribution companies, BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL) successfully met the peak power demand of 2,590 MW and 1,290 MW in their respective areas of operations. Delhi’s peak power demand was 5,710 MW. BSES recently said that it was fully prepared to meet the escalating demand and has made extensive arrangements to ensure uninterrupted electricity supply to nearly 20 million residents across the city. Peak power demand in the BRPL area of South and West Delhi, which reached 3,809 MW during the summer of 2024, is expected to reach around 4,050 MW in the 2025 summer. According to SLDC, after clocking record power demand of 8,656 MW in 2024, Delhi’s peak power demand during the summer of 2025 may hit 9,000 MW for the first time. Delhi’s peak power demand surged to 5,462 MW — the highest recorded this year so far, according to the State Load Dispatch Centre (SLDC) data. This marked a sharp rise from peak of 5,029 MW. Delhi Power Minister Ashish Sood said the city’s peak power demand could touch 9,000 MW this season.
Tata Power-DDL successfully met the summer peak demand of 1,670 MW— the highest recorded so far this season — ensuring uninterrupted power supply across its network. The company’s robust power arrangements, including long-term tie-ups and the strategic deployment of Battery Energy Storage Systems (BESS) at Rohini, played a key role in maintaining a reliable and resilient supply amid soaring temperatures. The city’s power demand crossed the 8,000 MW threshold for the first time last year and has been steadily rising since breaching the 7,000 MW mark in 2018. Compared to 2002, when the peak demand was 2,879 MW, this year’s expected peak represents a threefold increase.
According to Punjab government, the state would require about 17,000 MW power during paddy season and PSPCL (Punjab State Power Corporation Ltd) had made advance arrangements for the requirement. As per the state government, requisite preparations had been made to ensure regular supply of power to consumers.
Regulation and Governance
Domestic and commercial users will have to shell out extra for each unit of power after the Jharkhand State Electricity Regulatory Commission (JSERC) approved a tariff hike by 6.34 percent. As per the proposed tariffs, domestic consumers in urban areas will now have to pay INR6.85 per unit (kWh), a 20 paise increase from the existing tariff. Domestic tariff in rural areas was hiked by 40 paise to INR6.7 per unit while registered tribal consumers will now have to pay INR6.4 per unit, up by 15 paise. However, the fixed charges will remain unchanged for all categories. Notably, the JSERC had withheld a similar tariff revision plan of JBVNL before the state assembly election late last year. Commercial users will also bear the impact of the hike. Rural commercial users will have to pay INR6.2 per unit, up by 10 paise while urban commercial users will have to pay INR6.7 per unit, up by 5 paise. Industrial and high-tension (HT) consumers will also see a change in their bills. Domestic commercial consumers in the HT category will now pay INR6.40 per unit instead of INR6.25. Meanwhile, rates for Low Tension (LT) industrial supply have increased slightly from INR6.05 to INR6.10 per unit, and High Tension Industrial Supply has been revised from INR5.85 to INR5.90. The tariffs for Industrial Street Lighting and IAS (private/government) were left unchanged at INR7.00 and INR5.30 respectively.
The Delhi Cabinet approved the continuation of the power subsidy scheme for the financial year 2025-26. Under this scheme, the state government provides free electricity to households that consume below 200 units and a 50 percent subsidy to households that use only 201-400 units per month. The Cabinet approved the continuation of the existing power subsidy for four categories: domestic consumers, farmers, lawyers with chambers, and victims of the 1984 anti-Sikh riots. The Cabinet has decided to extend its existing Electric Vehicle (EV) policy by three months. Though the Cabinet discussed the draft of the proposed EV 2.0 policy, it was not approved as discussions are on and the existing policy will continue. The Cabinet was initially expected to approve three proposals: a continuation of the power subsidy, the EV 2.0 policy, and a sugar subsidy for underprivileged families.
Africa & Middle East
Syria is set to sign a deal to import electricity from Turkey through a 400 kilovolt (kV) transmission line between the two countries "soon", the country’s Energy Minister Mohamed al-Bashir said. Syria has suffered from severe power shortages. On separate occasions, the country said it was working with partners including Gulf states, in the energy and electricity sectors.
The World Bank has granted Lebanon a US$250 million (mn) loan aimed at helping alleviate persistent power cuts worsened by last year's war between Israel and Hezbollah, the country’s finance ministry said. Even before the conflict, Lebanon had for years been struggling with a severe shortage of imported fuel and poor infrastructure. Following the conflict, however, the World Bank said it would need around US$11 billion (bn) for reconstruction and recovery.
North & South America
According to the US Energy Information Administration (EIA), United States (US) power consumption will hit record highs in 2025 and 2026. The EIA projected power demand will rise to 4,205 billion kilowatt hour (kWh) in 2025 and 4,252 billion kWh in 2026, from a record 4,097 billion kWh in 2024. The EIA forecast 2025 power sales will rise to 1,525 billion kWh for residential consumers, 1,469 billion kWh for commercial customers and 1,065 billion kWh for industrial customers. Those forecasts compare to all-time highs of 1,509 billion kWh for residential consumers in 2022, 1,434 billion kWh in 2024 for commercial customers and 1,064 billion kWh in 2000 for industrial customers. US electric and gas utility CMS Energy reported a rise in first-quarter profit, helped by higher power demand. The US EIA in February forecast power demand to hit record highs in 2025 and 2026, as utilities are seeing a surge in demand from AI data centers and increased domestic manufacturing.
United States power system is on track to hit a new energy transition milestone in April as total clean electricity supplies approach their annual peak while overall electricity demand eases during the so-called spring shoulder season. Clean power sources generated more than half of all US electricity supplies for the first time in March, accounting for 51 percent of all utility-scale electricity output that month. But this month clean power could notch up an even larger share of the US electricity mix if overall power use declines in line with normal seasonal trends to allow utilities to cut output from fossil fuel plants just as renewable output rises. For the past seven straight years, April marked the low point for monthly electricity consumption in the US, and that trend looks set to be extended in 2025 as mild temperatures have lowered heating demand so far this month.
Nearly half of the homes and businesses in Puerto Rico that receive electricity from the commonwealth’s main utility were still without power, a day after a widespread blackout struck the island, Luma Energy said. Puerto Rico’s electrical system has continued to falter since two powerful hurricanes devastated Puerto Rico in 2017, decimating the grid and killing nearly 3,000 people. On New Year’s Eve last year an underground power line was the most recent failure that led to island-wide blackouts.
Canadian power producer Capital Power Corporation would buy two natural-gas fired power plant operators located in the PJM market for about US$2.2 bn. The deal comes at a time when electricity prices are rapidly increasing in PJM, the United States' biggest power market, and as demand for electricity continues to increase on the back of the proliferation of energy-guzzling AI data centers and the electrification of transportation and buildings. Capital Power would buy power plant operators Hummel Station Intermediate Holdings III and Rolling Hills Generating Holdings from LS Power Equity Advisors. Capital Power expects the acquisition to generate average annual adjusted EBITDA of about US$443 mn for the 2026-2030 period.
Europe & Russia
Europe’s ageing power grid and lack of energy storage capacity will require trillions of dollars in investments to cope with rising green energy output, increasing electricity demand and to avoid blackouts. A week ago, Spain and Portugal lost power in their worst blackout. Authorities are investigating the cause, but whatever the findings, analysts and industry representatives say infrastructure investment is essential. The European Union (EU)’s power grid mostly dates back to the last century and half the lines are over 40 years old. While global investment in renewables has nearly doubled since 2010, investment in grids has barely changed at around $300 bn a year. The amount needs to double by 2030 to over $600 bn a year to cover the necessary overhauls, according to the International Energy Agency (IEA). The European Commission has estimated Europe needs to invest US$2.0-2.3 trillion in grids by 2050. Last year, European firms invested €80 bn (US$90.5 bn) in grids, up from 50-70 billion in previous years, analysts said while adding investments may need to rise to 100 billion. Spain and Portugal’s power systems are among those in Europe that lack connections to other grids that can provide back up.
Europe’s households and businesses are starting to get a reprieve from high energy bills as regional power costs fall sharply from their 2025 peaks. Wholesale spot power prices across most of continental Europe have more than halved since hitting two-year highs in early 2025, due to a sharp retreat in regional natural gas costs which are down by a third since January. Wholesale peak power prices across Europe's largest economies have fallen sharply from recent peaks. Expanding output from regional clean power sources - particularly solar farms - has also helped push power costs lower, and should provide some cushioning to Europe’s utilities and energy consumers following an expensive start to the year. European utilities were forced to boost gas-fired power production during January to March of 2025 to the highest levels in three years due to sharply lower output from wind farms.
Britain’s power grid could experience its lowest-ever electricity demand this summer as renewables generation and cheap power imports from Europe keep the system well supplied, the National Energy System Operator (NESO) said. In its summer outlook covering April to October, NESO said the electricity transmission network could need to operate at its lowest-ever level at below 13.4 gigawatt (GW) at some points, less than in June 2020 when COVID-19 pandemic lockdowns suppressed electricity demand below normal summer levels. Peak demand is forecast to be 29.7 GW this summer. Britain is also expected to benefit from power imports from Europe this summer due to the healthy availability of conventional power stations. For the grid to operate at low demand levels, NESO has to ensure it receives a minimum continual flow of electricity for it to remain balanced.
Norway’s Equinor is combining its renewables business with its gas-to-power plants and energy storage assets to boost its electricity business. The move is a response to the surging demand for power fuelled by the expansion of artificial intelligence, data centres, and the green transition, said Equinor, which still gets the vast majority of its income from oil and gas. According to the IEA, global electricity consumption from data centres is expected to rise to around 945 terawatt hours by 2030 in a base-case scenario.
13 May: Petrol and diesel prices witnessed a marginal hike in Kolkata following a readjustment in the basic price of fuel by oil marketing companies. This revision has pushed the petrol price in the city to INR105.41 per litre and diesel to INR92.02 per litre from 12 May 2025. The basic price, which serves as the benchmark set by OMCs (oil marketing companies) before the addition of central and state taxes, is periodically reviewed and adjusted based on various operational and logistical factors. Though such changes are usually minor, they directly impact the retail price of fuel paid by consumers.
11 May: The government will hold pre-emption rights over all oil and natural gas produced in the country in any event of national emergency, according to draft rules being framed under a revamped oilfields legislation. The inclusion of such rights over crude oil — extracted from underground or beneath the seabed and refined into fuels like petrol and diesel — as well as natural gas, which is used for power generation, fertilizer production, CNG for vehicles, and piped cooking gas, is intended to help the government prioritize national interests and ensure public welfare during emergencies. The Ministry of Petroleum and Natural Gas has invited comments on draft rules after Parliament earlier this year passed the Oilfields (Regulation and Development) Amendment Bill, which replaced outdated provisions from the 1948 Act, to boost domestic production, attract investment, and support the country's energy transition goals. The draft rules provide for oil and gas operators being exempt from their obligations under the Act in force majeure conditions.
7 May: India, the world’s third-largest oil importer, is poised to save up to INR1.8k billion on its crude oil and liquefied natural gas (LNG) import bill if the current trend of declining global energy prices persists, according to rating agency ICRA. In the fiscal year ending 31 March 2025, India spent US$242.4 billion on crude oil imports, covering over 85 percent of its domestic needs. Additionally, the country spent US$15.2 billion on LNG imports. However, recent softening in international oil prices has led to significant savings. Oil prices fell to a four-year low of US$60.23 per barrel due to concerns over rising global supply amid uncertain demand. While prices have since rebounded to US$62.4 per barrel, they remain approximately US$20 lower than in March 2024, when petrol and diesel prices were reduced by INR2 per litre ahead of general elections. ICRA projects that average crude oil prices for the fiscal year 2026 (April 2025 to March 2026) will remain in the US$60–70 per barrel range. At these levels, the country could save INR1.8k billion on crude oil imports and an additional INR60 billion on LNG imports. For upstream oil companies, this price range is expected to result in a INR250 billion reduction in profits before tax for FY2026. Despite this, ICRA anticipates that capital expenditure plans for domestic upstream players will remain unaffected. Oil marketing companies (OMCs) are expected to maintain healthy marketing margins on auto fuels, while under-recoveries on liquefied petroleum gas (LPG) are likely to decrease. The government controls LPG prices, and OMCs sell the fuel below cost, compensating for the under-recovery through subsidies. Lower LPG under-recovery and government compensation are expected to support the profitability of downstream companies, even amid increased excise duties on auto fuels implemented in April 2025.
13 May: GAIL (India) Ltd will operate its 5 million tonnes per year (mtpa) LNG (liquefied natural gas) import terminal in western India during the monsoon season for the first time, after completing a breakwater facility, Chairman Sandeep Kumar Gupta said. The company typically shuts the Ratnagiri terminal — popularly known as the Dabhol LNG plant — for four months from May 25 each year to avoid high tides. The new breakwater will now enable ship arrivals during the monsoon. Separately, GAIL’s head of business development Rajeev Kumar Singhal said the company plans to expand Dabhol’s capacity to 6.3 mtpa by mid-2027, and to 12.5 million tonnes by 2031–32. He said that GAIL has received five bids in a tender to acquire a stake in a US (United States) LNG project, alongside a long-term LNG supply agreement. Indian companies are increasingly seeking US LNG linked to Henry Hub prices to reduce exposure to oil-indexed contracts, which dominate their current portfolios. He said Henry Hub-linked LNG prices are expected to average US$3.5–US$4 per million metric British thermal units, making purchases affordable on a free-on-board basis for Indian customers.
12 May: Assam Chief Minister (CM) Himanta Biswa Sarma inaugurated the state’s first piped natural gas (PNG) supply project for residents of Guwahati, marking a significant step towards clean energy access. The launch event took place at Lok Sewa Bhawan, with 101 households in the city’s Geetanagar locality included in the project’s initial phase. The CM virtually inaugurated Barak Valley’s first compressed natural gas (CNG) station in Silchar and laid the foundation stones for piped gas supply infrastructure in Hajo, Sualkuchi, Rangia, and Baihata Chariali. The project is being executed by Purba Bharati Gas, a joint venture formed by Assam Gas Company, Oil India, and GAIL Gas. It aims to establish a city gas distribution (CGD) network across the districts of Kamrup, Kamrup Metropolitan, Cachar, Hailakandi, and Shreebhumi.
7 May: The Cabinet Committee on Economic Affairs (CCEA) approved a proposal under the Revised SHAKTI policy to make more coal available to thermal power plants belonging to the central sector and state sector, and Independent Power Producers (IPPs). The SHAKTI (Scheme for Harnessing Scheme for Harnessing and Allocating Koyala Transparently in India) policy was launched in 2018 to provide coal to stressed power units which lack coal supply.
7 May: Andhra Pradesh is effectively managing its rising electricity demand during the ongoing summer season with a peak load of 13,117 megawatt (MW) recorded on 25 April, and a projected peak load of 12,358 MW from May to October 2025, according to Chief Secretary and Special Chief Secretary (Energy) K Vijayanand. During a review meeting at the Secretariat, he assessed the power supply position with officials from APTRANSCO, APGENCO and DISCOMs, emphasising the State’s robust strategy to ensure reliable power supply 24x7. In April, the average daily demand was 236.24 million units with total consumption of 7,087 million units, reflecting a 3.57 percent decrease from April 2024. The State employs power swapping during peak morning and evening hours to manage load efficiently.
7 May: The Centre has issued a notification to set up a power transmission system for the proposed 1000 megawatt (MW) Pakal Dul hydroelectric project in Jammu and Kashmir, speeding up processes for what will be the biggest dam on the Indian side of the Indus river system. Alongside, the National Hydroelectric Power Corporation Ltd, the country’s biggest hydropower firm, has begun carrying out reservoir flushing in the Salal and Baglihar dams, being done for the first time since the latter was built in 2008.
10 May: Lieutenant governor VK Saxena and speaker Vijender Gupta will jointly lay the foundation stone for a 500 kilowatt (kW) solar power plant on the Delhi Assembly premises. The assembly secretariat issued a press statement saying the speaker convened a meeting to deliberate on key operational and logistical aspects of the project and reaffirmed the commitment to advancing clean energy adoption and environmental responsibility. Delhi Assembly will be the first legislative body in the country to operate entirely on solar energy.
7 May: NLC India Renewables Limited (NIRL), a 100 percent subsidiary of NLC India Ltd (NLCIL), has signed a power purchase agreement (PPA) with Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUNL) for its upcoming 810 megawatt (MW) solar power project. According to NLCIL, the flagship project at Pugal solar park in Bikaner district marks a significant milestone in NLCIL’s journey towards becoming a major player in the renewable energy sector. The solar park is being developed in the barren lands of Bikaner and the proposed site is bestowed with abundant solar radiation, it said. The project is expected to generate approximately 2 billion units of green electricity annually and offset approximately 1.5 million metric tonnes of CO2 (carbon dioxide) emissions per year, as per the terms of the PPA, playing a vital role in India’s transition to a low-carbon economy. The project will be established within the infrastructure of the 2000 MW Pugal solar park being developed by RVUNL. With this project, NLCIL’s cumulative renewable energy capacity under implementation takes a major leap, reinforcing its mission of powering India responsibly with a balanced energy mix of conventional and renewable energy sources.
13 May: Wage talks between Norwegian oil firms and two labour unions resulted in a deal. The Lederne union and Styrke both came to an agreement with companies, industry group Offshore Norway said, while a third union, Safe, will be encompassed by the settlement, averting the risk of strike action by some workers later this year. The new contract raises annual pay for oil and gas workers by at least 35,000 Norwegian crowns (US$3,353), the unions said. The wage talks covered in total about 7,400 union members, employed by such companies as Equinor, ConocoPhillips and Aker BP.
12 May: China’s imports of crude oil edged into positive territory for the first months of the year, but rather than a sign of improving fuel demand, the recovery is more about rising inventories. The world’s biggest crude importer recorded arrivals of 11.69 million barrels per day (bpd) in April, down slightly from March’s 12.1 million bpd but 7.5 percent higher than the 10.88 million bpd from the same month last year, according to customs data. March imports were the strongest since August 2023 and the relatively robust outcome for April took arrivals for the first four months of the year to 11.83 million bpd, up 0.5 percent from the same period in 2024. But it appears the driving force behind the strength in imports in March and April was the availability of discounted cargoes from Iran and Russia, two countries that have been subject to new sanctions imposed by the United States.
12 May: Iraq is set to export 3.2 million barrels per day (bpd) of crude oil in May and June, in what would amount to a significant reduction from previous months. The lower export plan is part of Iraq’s efforts to deliver on its schedule of compensation cuts pledged to OPEC+. This level of exports would be lower than the rate of about 3.42 million bpd that Iraq’s oil ministry reported for March. Baghdad has not yet reported April exports, but according to Kpler, a data intelligence firm, the country shipped an average of 3.3 million bpd in April.
8 May: Mexican state energy company Pemex plans to reopen old wells in a bid to squeeze more barrels out of them to boost declining oil production, according to two documents and four sources, as it struggles to reach an ambitious government target. Pemex said that it expects production to fall to 1.58 million barrels per day (bpd) this year rather than the 1.8 million bpd officials have consistently touted. It currently produces some 1.6 million bpd. Production for the heavily-indebted company has been declining for years as its older fields in the Gulf of Mexico, including many former star producers, are being depleted and newer fields have failed to compensate for it.
7 May: The oil market appears to be telling Saudi Arabia that its shift to pumping more oil after five years of cutting output was well timed. The kingdom has in recent weeks pushed fellow OPEC+ members to produce more oil despite fears about an economic slowdown, a marked change in policy that helped oil prices settle at a four-year low. But despite OPEC+ agreeing to raise output by a cumulative near one million barrels per day (bpd) between April and June, the oil market is still reflecting a perception of tight supply over the next few months of peak summer demand. That has pushed the futures curve, which reflects forward prices, into a rare "smile" shape, a structure Morgan Stanley analysts said was last seen only briefly in February 2020. Energy Aspects analyst Richard Price said the structure was a result of tight prompt supply coupled with expectations of US (United States) President Donald Trump’s trade wars slowing economic activity later in the year. OPEC+ cited low stocks and healthy prompt demand when it agreed on Saturday to raise output for July. Global oil inventories stood near the bottom of their historical five-year range at 7.647 billion barrels, according to the International Energy Agency (IEA)’s latest available data for February, down from 7.709 billion barrels a year earlier. Meanwhile, refiners' appetite for crude is rising ahead of the July-August peak driving season. Global oil demand will rise by 1.3 million barrels per day in the third quarter of 2025 from the second quarter to average 104.51 million bpd, the IEA said.
13 May: Saudi Aramco will sign Memorandum of Understanding (MoU) with US (United States) liquefied natural gas (LNG) producer NextDecade and utility firm Sempra, Aramco’s chief executive officer (CEO) Amin Nasser said, as the oil giant expands in the LNG market. Under the MoUs Sempra and NextDecade would supply around 6.2 million tonnes (MT) of LNG to Aramco. The US is already the world’s largest exporter of LNG and producers have plans in place that would double capacity in coming years. NextDecade signed a deal with a subsidiary of Aramco, which is seeking to become a big player in the LNG market, under which the US firm will supply the superchilled gas from its Rio Grande facility for 20 years. Nasser said that one of the investments that Aramco plans to sign involved an expansion of the Motiva Port Arthur’s refinery in the US, noting the oil giant would invest US$3.4 billion in the refinery.
9 May: Imports of liquefied natural gas (LNG) from the United States (US) rose to 35 percent of Spain's total gas imports in the first four months of this year from just over 20 percent a year ago, while imports of Russian LNG declined. Europe has increasingly imported superchilled gas shipped from the US since Russia’s invasion of Ukraine significantly reduced the amount of Russian gas piped to Europe. In the first four months of the year, Spain imported the equivalent of 45,932 gigawatt hour (GWh) of gas from the US, compared with 24,885 GWh a year earlier, according to data from Spanish gas grid operator Enagas. The US has become the main gas supplier to Spain, replacing Algeria, which ships liquefied gas and also pumps gas directly to Spain through pipelines. Spain’s overall gas demand declined by 3 percent, Enagas said. The US liquefied gas also replaced the liquefied gas sent from Russia. As a share of Spain’s total imported gas, Russian gas fell to 13.3 percent in the first four months of this year down from 22.4 percent in the same period last year.
8 May: United States (US) exports of natural gas liquids touched a record high in April, even as a trade war between the US and China cut shipments to the top buyer, ship tracking data showed. The recent trade developments have threatened US exports of natural gas liquids (NGLs), such as ethane, butane and propane, used to make plastics and chemicals as well as for heating and cooking. US exports have hit a new high every year since 2010 thanks to an abundance of cheap shale natural gas.
7 May: Slovakia and Hungary condemned European Commission plans to phase out Russian gas and other energy imports, deepening a rift with Brussels over relations with Moscow. The EU (European Union) had said it would propose legal measures next month to phase out EU imports of Russian gas and liquefied natural gas (LNG) by the end of 2027. The plans touch on oil and include trade measures targeting Russian enriched uranium for nuclear power that would amount to a tax or levy on imports. The move is part of the EU’s pledge to end its decades-old energy relations with former top gas supplier Russia after its full-scale invasion of Ukraine in February 2022. Slovak Prime Minister Robert Fico said he respected attempts to reduce energy dependence on third countries but the Commission’s proposals would harm the EU, raising prices in the bloc and damaging its competitiveness. Slovakia and Hungary receive Russian gas and oil supplies and have argued with Ukraine over its decision at the end of last year to halt gas flows from the east through its territory. Around 19 percent of Europe’s gas still comes from Russia via the TurkStream pipeline and LNG shipments, down from roughly 45 percent before 2022. The EU has imposed sanctions on most Russian oil imports but not on gas due to opposition from Slovakia and Hungary, which receive Russian pipeline supplies and maintain closer ties with Moscow.
7 May: Moldova has secured a quarter of its annual gas supply needs in a deal with the Romanian oil and gas group OMV Petrom, with first deliveries expected in 2027. The agreement is crucial for Moldova, which has been dependent on Russian gas for decades but has moved to diversify supply following Moscow’s full-scale invasion of Ukraine. Romania’s energy ministry announced the three-year supply deal from its pending Black Sea project Neptun Deep, one of the European Union's most significant gas deposits with an estimated 100 billion cubic meters of recoverable gas. The deal will account for 25 percent of Moldova’s total demand for gas, which is estimated at 3.2 billion cubic metres a year.
13 May: Poland’s share of electricity generated by coal fell below 50 percent for the first time, marking a significant milestone in the country’s ongoing transition towards cleaner energy sources. According to a report by Forum Energii, an energy think tank, electricity produced from coal in April 2025 amounted to 6.5 terawatt hour (TWh), accounting for 49.4 percent of the total energy mix. This represents an 18.9 percent decrease from March and a 9.6 percent drop compared to the same month in 2024. Forum Energii described recent changes in the electricity mix as “unprecedented”, noting that the use of coal had fallen by 29.9 percentage points between April 2015 and April 2025. The report showed that hard coal generation dropped to 4 TWh in April, down 20.1 percent month-on-month and 10.9 percent year-on-year. Brown coal output fell to a record low of 2.5 TWh, a 16.8 percent fall from March and a 7.2 percent decline compared with April 2024.
9 May: Indonesia’s exports of thermal coal have dropped to their lowest in three years so far in 2025, dented by weak demand in China and India - the world’s two largest coal consumers. The world’s largest exporter of coal for power generation shipped out 150 million tonnes (MT) of thermal coal over the first four months of 2025, according to data from commodities intelligence firm Kpler. That was 12 percent, or nearly 20 MT, less than what was shipped during the same months in 2024, and marked the biggest year-on-year decline in data going back to the start of 2017. As Indonesia accounts for roughly half of all thermal coal exports, the lower Indonesian shipments have dragged global thermal coal exports lower too, by 7 percent, or 23 MT, from January through April compared with the same months a year ago. If the relatively weak pace of coal exports is sustained over the rest of the year, 2025 could mark the first annual decline in Indonesian coal exports since 2020, when the country’s coal output and shipments were stalled by COVID-19. Weaker coal import demand from China and India were the main drags on Indonesia’s coal exports. China - by far the world's largest coal producer, consumer and importer - cut its purchases from Indonesia by 14 million tons, or 20 percent, during January to April from the same period last year. Beijing's greater emphasis on boosting local coal mine output, alongside ongoing efforts to reduce air pollution, have been the key drivers behind China's reduced import appetite.
13 May: The main power system for the state of Texas is bracing for a surge in electricity demand as a heat wave is forecast to drive up temperatures across the middle of the state to above 100 degrees Fahrenheit (37.7 degrees Celsius). Widespread use of air conditioners alongside growing demand from data centres and industry is expected to drive peak electricity use to a record 84,000 megawatt (MW) this week, the Electric Reliability Council of Texas (ERCOT) reported. That demand load total is 9 percent more than the previous demand peak for the month of May, according to industry analysts, and will likely place one of the country’s largest power systems under intense strain over the coming days. Below are some of the key tools that power analysts can use to track how the ERCOT system is coping.
12 May: Germany’s network regulator started a formal process to rethink the electricity grid fee structure, aiming for a system better suited to renewable energy. Fees for using the power network already make up around 20 percent of consumer bills in Germany, contributing to energy prices that are among the highest in Europe, hurting the country’s industry and overall economic output. Germany’s association of local utilities, VKU, said the proposed adjustments could lead to a better distribution of costs and curb expensive grid expansion but it criticized the proposals for a nationwide uniform grid tariffs for distribution system operators and warned against over complexity in designing the dynamic fees system. The new system might charge a flat fee or a surcharge based on the size of a user’s connection instead of how much electricity is used. It introduces so-called dynamic pricing, determining grid fees by how busy the network is, hoping to push consumers to use energy in a smarter way.
8 May: A power outage hit several areas of the Spanish island of La Palma in the Canary archipelago, the local council said. The island was not affected by the massive blackout that hit most of Spain and Portugal on 28 April.
13 May: The International Finance Corporation (IFC), a member of the World Bank Group, with the support of the Government of Canada, announced a US$5 million investment in Husk Power Energy Systems Nigeria Limited (Husk Nigeria), a subsidiary of Husk Power Systems Inc, to expand access to reliable, renewable energy in underserved communities across Nigeria. IFC’s financing package will enable Husk to develop and operate up to 108 mini-grid sites, resulting in approximately 28,750 new electricity connections and delivering clean, affordable energy to around 115,000 people and businesses. Husk’s solar hybrid mini-grids offer a cost-effective alternative to diesel generators, providing users with at least 25 percent in cost savings while significantly reducing greenhouse gas emissions.
12 May: Vietnam and Russia have agreed to quickly negotiate and sign agreements on building nuclear power plants in Vietnam, the two countries said. The Southeast Asian nation has restarted plans to develop nuclear power plants that were suspended nearly a decade ago, as part of its efforts to ramp up its power generation capacity to support its fast-growing economy. The government has previously said it expected the first nuclear power plants with a combined capacity of up to 6.4 gigawatt (GW) to be online between 2030 and 2035. The government said it would hold talks with foreign partners about nuclear power projects, including Russia, Japan, South Korea, France and the United States.
9 May: The British government has given consent for the development of a 400 megawatt (MW) solar photovoltaic (PV) project in East Yorkshire, the Planning Inspectorate said. The East Yorkshire Solar Farm will generate enough electricity to power around 100,000 homes, according to developer East Yorkshire Solar Farm Limited. The project includes connecting to the national electricity transmission network at the National Grid’s Drax substation. The developer expects construction of the grid connection cables to last for around 12 months, and the solar PV site to take around two years.
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