Global power generation from fossil fuels fell in the first month since the start of the Hormuz blockade, with gas-fired generation declining, offset by large increases in solar and wind power rather than coal.

Coal-fired power generation fell in the US, India, the EU, Turkey, and South Africa, according to the power generation dataset prepared by the Centre for Research on Energy and Clean Air (CREA), a non-profit think tank.

Total power generation from fossil fuels in countries with near-real-time data fell 1% year-on-year, with coal-fired generation flat and gas-fired generation falling 4%. The dataset covers the world’s largest power markets, China, the US, the EU, and India, among others.

In the US and India, solar power growth was the single largest driver of the decline in fossil power generation, the analysis says.

The key reason there has been no coal resurgence amid high gas prices is that coal already had lower operating costs than gas in all markets before the current crunch. Therefore, coal plants were already running at the highest rates they could, given the time profile of demand and near-zero marginal-cost supply; gas was filling in only where coal plants could not ramp up and down fast enough to follow residual load.

There has been no increase in coal capacity so far: no coal units were returned to service or delayed from retirement in any country in March.

Seaborne coal transport volumes fell 3%, 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 were also down 3% year on year in March according to Kpler, falling to the lowest levels since 2021, the height of the Covid pandemic. Coal shipments to destinations in both China and India fell 9%.

High stockpiles and stable prices contributed to an 8.5% year-on-year decline in India's coal imports during February. The total reached 16.55 million tonnes, suggesting a decreased dependence on imported coal.

The decline was largely caused by the availability of large domestic coal inventories and strong overseas prices, leading to a decrease in imports. On a month-on-month basis, imports remained largely stable, at 16.64 million tonnes in January 2026.