The International Energy Agency’s (IEA) latest "Monthly Electricity Statistics" report, incorporating data up to May 2023, has revealed a sharp decline in electricity production from fossil fuels, coupled with a notable rise in renewable energy generation within the Organisation for Economic Co-operation and Development (OECD) membership.

According to the report, the total net electricity production within the OECD amounted to 831.5 terawatt-hours (TWh) in May, marking a substantial 3.9% drop compared to the same period last year. At the heart of this decline is the diminished output from fossil fuel sources, plummeting by 9.8% year-on-year. This downturn was primarily driven by substantial reductions in coal-based generation, which dipped 19.7%, and natural gas, which experienced a 4.3% decline.

The outcome of this shift is the reshaping of the energy mix, with the share of fossil fuels within the OECD electricity generation mix plunging to 45.2%, a stark three-percentage-point reduction from May 2022 figures. Simultaneously, renewable energy sources have grown, with the data showing a 1.5% year-on-year increase in total electricity production from renewables. Key contributors to this growth were solar power, with a 15.1% surge, and hydropower, boasting a 2.2% increase. However, wind power encountered a minor setback, witnessing 7.3% decline in output. As a result, renewables now command 38.2% share of the OECD electricity mix, marking a noteworthy two-percentage-point upswing from the previous year.

In a related facet of the energy transition, nuclear power demonstrated its resilience by charting a 2.0% increase in generation compared to the previous year. While Europe and the Americas witnessed slight contractions of 1.4% and 1.1%, respectively, the tide was turned by an impressive 25.8% year-on-year surge in production in the Asia-Oceania region. The overall share of nuclear power in the OECD electricity mix remained steady at 16.3%.

Serbia emerged as a surprising star performer, showcasing a remarkable 42.8% surge in hydropower electricity production. The country's increased rainfall boosted water inflows in major hydropower plants, catapulting hydropower's share of Serbia's electricity production to a record-high 48.2%. In a historic move, hydropower eclipsed coal, which accounted for 43.8% of Serbia's electricity generation in May 2023.