Global Renewable Energy Progress: Pathways And Challenges To 2030 Goals – IEA Report

The report “Renewables 2024” presents a thorough analysis of renewable energy progress globally, with a focus on electricity, transport, and heat. It highlights how renewables are on track to surpass many government-set goals by 2030 but still fall short of the goal to triple global capacity.

A key factor driving this growth is the increasing competitiveness of renewable energy compared to traditional fossil fuels, spurred by policies aimed at climate and energy security. Solar PV and wind energy are the two main contributors, with their global economic appeal continuing to grow. China leads this expansion, accounting for 60% of the projected global capacity increase.

While China continues to dominate the sector, other significant players such as the United States, India, and European Union countries are also accelerating their renewable energy development. The Inflation Reduction Act in the U.S. is a critical driver of renewable energy growth, offering tax incentives for solar and wind projects. In India, growth is fueled by competitive auctions and supportive policies for rooftop PV installations.

New solar energy installations alone are expected to account for 80% of the growth in renewable electricity by 2030. The widespread acceptance of solar energy, due to its cost-effectiveness, has contributed to its rapid adoption, particularly among households and businesses aiming to reduce energy costs. At the same time, wind energy is anticipated to recover from its recent challenges, with policy changes and improvements in auction designs aimed at enhancing the sector’s financial performance.

The report emphasizes that despite some recovery, sectors like hydropower and bioenergy face limited growth due to weaker policy support. Hydropower’s growth is expected to remain steady, driven mainly by developments in China, India, and parts of Africa. Bioenergy, on the other hand, struggles with scalability issues and faces hurdles in gaining substantial traction as a global energy solution.

One challenge highlighted in the report is the difficulty of integrating solar and wind energy into existing grids, which has led to curtailment in several countries. Curtailment occurs when energy production surpasses the grid’s capacity to handle it, and it results in the loss of renewable energy potential. Countries like Chile, the U.K., and Ireland have experienced curtailment levels between 5% and 15%. The need for increased grid flexibility and investments in storage solutions like batteries is critical to addressing these challenges.

On the policy front, governments worldwide are focusing on reforming grid connection processes to minimize delays and inefficiencies. Reducing the time, it takes for renewable projects to obtain permits and grid connections is vital for accelerating renewable energy deployment.

In summary, while global renewable energy capacity is set to grow significantly, further efforts are needed to meet the ambitious goals outlined at the COP28 summit. Policy reforms, better grid integration, and enhanced financing mechanisms will play crucial roles in unlocking additional capacity, especially in emerging and developing economies where renewable energy potential remains largely untapped.