World’s installed renewable capacity to reach 11.2TW by 2035

Thanks to declining costs and policy support.

The global renewable energy installed capacity is projected to reach 11.2 terawatts (TW) by 2035 from 3.42 TW in 2024, led by solar and wind power.

According to GlobalData’s “Renewable Energy: Strategic Intelligence,” this reflects a cumulative annual growth rate (CAGR) of 11% from 2024 to 2035. The increase in capacity will be driven primarily by declining costs and strong policy support.

GlobalData noted that the global renewables market expanded from 0.93 TW in 2015 to 3.42 TW by the end of 2024, representing a CAGR of 16%.

Solar PV and wind power were significant contributors to the renewable energy sector, accounting for 56% and 33% of the total installed capacity in 2024, respectively.  The Asia Pacific region was the largest market for both power sources.

“As the costs of solar photovoltaic (PV) and wind technologies continue to decline, these renewable energy sources are increasingly appealing to investors,” said Rehaan Shiledar, power analyst at GlobalData.

“Also, energy transition strategies, coupled with a rising demand for electricity—partly fueled by the emergence of hydrogen energy and the advent of artificial intelligence—will propel the market growth for renewable energy sources,” the expert added.

Solar energy investments will outpace both the onshore and offshore wind sectors.

In 2024 alone, solar logged $329.1b in investments, whilst onshore wind and offshore wind investments stood at $151.2b, and $69.6b, respectively.

“Looking ahead, the onshore wind sector is forecasted to grow to $186.9 billion and the offshore wind sector to $150.4 billion by 2030. These figures correspond to a CAGR of 4% for onshore wind and an impressive 14% for offshore wind, signalling robust growth trajectories for these renewable energy sources,” GlobalData said.