Installed RE to more than double by 2030

This will be driven by solar energy expansion.

The global capacity of installed renewable energy is projected to more than double by 2030 amidst challenges in supply chains, grid integration, and financing.

According to the International Energy Agency’s (IEA) Renewables 2025, global renewable power capacity is increasing by 4,600 gigawatts (GW) by 2030. This is roughly the equivalent of adding China, the European Union and Japan’s total power generation capacity combined.

This growth will be led by the rapid rise of solar PV, which will account for around 80% of the global increase in renewable power capacity over the next five years. This is thanks to low costs and faster permitting timeframes.

Solar will be followed by wind, hydro, bioenergy and geothermal.

“Geothermal installations are on course to hit historic highs in key markets, including the United States, Japan, Indonesia and a host of emerging and developing economies,” IEA said.

“Rising grid integration challenges are renewing interest in pumped-storage hydropower, whose growth is expected to be almost 80% faster over the next five years compared with the previous five,” it added.

In emerging economies across Asia, the Middle East and Africa, cost competitiveness and stronger policy support are spurring faster growth of renewables, with many governments introducing new auction programmes and raising their targets, the agency said.

“India is on course to become the second-largest renewables growth market globally, after China, and is expected to comfortably reach its ambitious target by 2030,” IEA said.

The report’s outlook for global renewable capacity growth is revised downward slightly compared with last year, mainly due to policy changes in the United States and in China.

Specifically, Beijing's shift from fixed tariffs to auctions is impacting project economics, resulting in a reduction in our forecast for renewables’ growth in its market.

“These adjustments are partly offset by buoyancy in other regions – particularly India, Europe and most emerging and developing economies – where growth prospects have been revised upward due to ambitious new policies, expanded auction volumes, faster permitting and rising deployment of rooftop solar,” IEA said.

“Corporate purchase power agreements, utility contracts and merchant plants are also a major driver, together accounting for 30% of global renewable capacity expansion to 2030 – doubling their share compared with last year’s forecast,” it added.