According to the International Renewable Energy Agency (IRENA), achieving the global target of 11TW of renewable generation capacity by 2030 is attainable. However, it will require substantial efforts to overcome structural barriers to global energy transition. Key actions, as identified by IRENA, include the modernization and expansion of infrastructure, the scaling up of financing, and the strengthening of international collaborations. These measures are crucial for successfully transitioning to a more sustainable and renewable energy future.
IRENA’s recent report, titled “Tracking COP28 outcomes: Tripling renewable power capacity by 2030,” highlighted that the global renewable energy sector witnessed an impressive addition of 473GW of capacity in the previous year. Solar energy accounted for a significant 73% of this expansion. Despite these record-breaking achievements and the progress made in the energy transition, it fell short of meeting the objectives outlined in the 1.5°C scenario. To achieve the necessary 11TW of renewable generation capacity by 2030, an additional deployment of 7.2TW is required. This highlights the urgency for further action and accelerated efforts in the renewable energy sector.
IRENA emphasized that in line with the 1.5°C scenario, the G20 nations would have to significantly increase their renewable energy generation capacity. This growth would involve raising their capacity from under 3TW in 2022 to 9.4TW by 2030, constituting over 80% of the total global capacity. On a global scale, an average of nearly 1.1TW of renewable energy capacity needs to be installed each year by 2030, surpassing the previous record set in 2023 by more than double.
Among different types of renewable generation, solar energy is the only one projected to align with the 1.5°C scenario. It is estimated that an average of 578GW of solar capacity will be installed annually between 2024 and 2030. In a previous report, IRENA urged the global community to add 551GW of solar capacity each year by 2030 to meet the climate targets set for 2050. This highlights the crucial role of solar energy in achieving a sustainable and low-carbon future.
Overcoming barriers to energy transition
IRENA has put forward several recommendations to address the obstacles hindering the energy transition. One of the key areas is the modernization and expansion of infrastructure. This is crucial because the existing grid infrastructure often faces challenges in accommodating the swift deployment of variable renewable energy sources, resulting in higher curtailment rates for wind and solar PV projects. By upgrading and expanding the infrastructure, these issues can be mitigated, enabling a smoother integration of renewable energy into the grid.
To facilitate the development of large-scale infrastructure while ensuring environmental and social impact assessments, governments can streamline permitting procedures. This approach allows for a more efficient and timely approval process. Additionally, fostering public acceptance of renewable projects is crucial. Governments can engage in public outreach and education initiatives to increase awareness and understanding of the benefits of renewable energy. Furthermore, providing public finance to support the development of necessary infrastructure is essential. This financial support will enable the expansion of renewable energy projects and accelerate the transition to a sustainable energy future.
Another important step governments can take is to prioritize the energy transition within their national economic and development strategies. By integrating the energy transition into core policy frameworks, governments can effectively promote the deployment of renewable energy and other transition-related solutions. This involves aligning sector-specific or cross-sector policies to support the transition towards renewables. Additionally, governments can adjust policies, such as auction ceiling prices, to provide necessary support to the renewables industry, fostering its growth and sustainability.
In addition, international partnerships play a vital role in enhancing global financial flows, capabilities, and technologies in a fair and balanced manner. It is essential to reform multilateral finance mechanisms to boost the circulation of international public funds and affordable finance. Moreover, there should be a focus on prioritizing equitable development in developing nations to ensure sustainable progress and inclusive growth.
According to IRENA, there is a need to significantly increase global annual investments in renewable energy generation. The current investment level of US$570 billion in 2023 must rise to an average of US$1,550 billion between 2024 and 2030. This substantial increase in investment is crucial to accelerate the deployment of renewable energy technologies and drive the global energy transition.
In the previous year, investments related to the energy transition were projected to surpass US$2 trillion. Surprisingly, emerging market and developing economies, excluding China, contributed only 14% to the global investment total. This percentage decreased further to 10% when Brazil and India were excluded. Consequently, IRENA recommended increasing financial support for developing nations to address this disparity.
