Renewable energy is poised to reach a historic milestone by 2025, when it is expected to surpass coal as the world's leading electricity source, marking a decisive turning point in the global energy transition.
According to the International Energy Agency (IEA), global renewable capacity is projected to nearly triple by 2030, representing a dramatic acceleration toward sustainable energy systems [IEA]. This growth comes as renewables already fuel over 30% of global electricity generation in 2024, demonstrating the rapid pace of transformation in the energy sector.
Solar Leads the Charge
Solar photovoltaic (PV) technology has emerged as the fastest-growing renewable energy source by capacity additions in recent years. Modern solar panels now achieve efficiencies exceeding 22%, a significant improvement from approximately 15% just a decade ago [Institute of Sustainability Studies]. The IEA reports that solar PV remains aligned with Net Zero Emission scenarios, positioning it as a critical technology for climate goals.
"Solar PV has been the fastest growing technology by capacity additions in recent years," according to the IEA's renewable energy assessment [IEA].
Record Growth and Global Leadership
The year 2023 marked a record for renewable electricity capacity growth, with approximately 560 gigawatts of new additions globally. China dominated this expansion, adding nearly 350 GW—representing two-thirds of all global deployment [IEA]. The country's 14th Five-Year Plan for Renewable Energy, released in 2022, provides ambitious targets expected to drive continued investment.
The European Union has also accelerated deployment in response to the energy crisis, adding almost 80 GW in 2023—double the pre-crisis growth rate of 2021. Key policy initiatives including REPowerEU and The Green Deal Industrial Plan are expected to sustain this momentum [IEA].
Technological Innovations Drive Efficiency
Advances in renewable technologies extend beyond solar panels. Wind turbines and energy storage systems are experiencing rapid improvements in efficiency and cost-effectiveness. Green hydrogen technology is carving out new applications in heavy industry and transport, offering solutions for sectors traditionally difficult to decarbonate [Ratedpower].
These technological improvements are reducing transmission losses by generating electricity closer to consumption points, while simultaneously cutting greenhouse gas emissions during operation [Institute of Sustainability Studies].
Challenges and Policy Support
Despite progress, some renewable technologies face obstacles. Wind, hydropower, and bioenergy require additional efforts to meet required growth levels, while emerging technologies like concentrated solar power, geothermal, and ocean power need rapid scaling up [IEA].
However, recent policy developments in major economies provide optimism. The United States' Inflation Reduction Act, combined with supportive measures in China, the EU, and India, are expected to drive faster renewables growth in coming years [Columbia Climate School].
Economic and Environmental Impact
Beyond environmental benefits, renewable energy projects are creating substantial economic opportunities. Large-scale installations generate thousands of construction and maintenance jobs while boosting local economies. Projects like California's Alta Wind Energy Center contribute to the state's goal of achieving 100% clean electricity by 2045 [Columbia Climate School].
As the renewable energy sector continues its unprecedented expansion, the convergence of technological innovation, policy support, and economic incentives suggests the 2030 capacity targets may be achievable, fundamentally reshaping the global energy landscape.