Global Renewable Energy Growth: Key Trends from the IEA’s Renewables 2024 Report
The IEA Renewables 2024 report shows that, for the first time, global renewable energy growth is expected to exceed government-set targets by 2030.
Why It Matters
Global renewable energy capacity is expected to grow by 2.7 times by 2030.
China will lead the global renewable energy market, accounting for 60% of new capacity by 2030.
Key challenges include delays in grid infrastructure, slow integration of renewable energy, and outdated policies.
By 2030, solar power will make up 80% of new renewable energy capacity.
Significant Global Expansion of Renewable Energy
Global renewable energy capacity is expected to grow 2.7 times by 2030, reaching almost 5,500 GW. This growth will surpass current government targets but will still fall short of the goal set at COP28. Most new capacity will come from solar power and wind energy, which will make up 95% of the new installations. This increase shows how renewable energy is becoming more affordable compared to fossil fuels.
China Leading the Charge
China is forecast to dominate the global renewable energy market, providing 60% of the new capacity by 2030. China’s policies and focus on solar and wind energy are key to this growth. The United States, India, and the European Union are also expected to double their renewable energy capacity by 2030.
Challenges and Policy Gaps
There are several challenges to this forecast growth. Delays in building grid infrastructure, slow integration of renewable energy, and outdated policies could slow progress. However, these problems can be addressed with better infrastructure, energy storage systems, and faster approval processes for new projects.
Hydrogen and Renewable Fuels Lagging Behind
Hydrogen and renewable fuels are still in their early stages. By 2030, only 4% of hydrogen production is expected to come from renewable sources. The slow adoption is due to high production costs and low demand. However, policies supporting hydrogen use in transport and industry could encourage future growth. You can learn more about hydrogen fuels on our Responsible Alpha website or in the full IEA report.
Falling Costs of Solar and Wind
The costs of solar power and wind energy continue to fall, contributing to their growth. By 2030, solar power is expected to account for 80% of new renewable energy capacity. Although wind energy has faced recent challenges, policy changes are expected to help the industry recover.
The Role of Other Renewables
Other sources of renewable energy, like bioenergy, geothermal, and ocean energy, are expected to play smaller roles in the future. These energy sources face challenges due to high costs and policy barriers, which will limit their growth.
Pathway to Net Zero
While the report is optimistic about renewable energy growth, it also warns that current trends are not enough to meet the International Energy Agency’s Net Zero by 2050 goal. More ambitious policies and investments are needed, especially in emerging economies with high potential for renewable energy.
Opportunities for Emerging Economies
Emerging and developing economies have significant potential for renewable energy but face challenges like high financing costs and weak infrastructure. Improving policies and setting long-term targets could help these regions unlock more renewable capacity. The report also suggests that renegotiating fossil fuel contracts and phasing out old power plants could speed up renewable energy growth.
Conclusion: A Call for Policy Action
The IEA’s report stresses that while renewable energy will grow significantly in the next decade, more work is needed to meet global climate goals. Governments and industries must address infrastructure delays, policy gaps, and other obstacles to realize the full potential of renewable energy. With coordinated action, the world can still achieve its renewable energy goals and progress toward a low-carbon future.
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