Renewable Energy growth reaches historic milestone, but the Energy Transition remains at risk

The year 2024 marked an unprecedented milestone for renewable energy: global capacity increased by 741 gigawatts (GW), representing the largest annual growth recorded to date, with an 18% rise compared to the previous year. Solar photovoltaic (PV) energy was the principal contributor, accounting for 81% of this expansion, with China leading deployment by representing 60% of new global PV installations.

This growth reflects technological advancement and a rising demand for clean energy. Moreover, numerous corporations—particularly within the technology and industrial sectors—increased their procurement of renewable energy through power purchase agreements (PPAs), adding 69 GW, a 35% increase relative to 2023. This trend underscores that renewable energy sources are not only sustainable but also economically viable.

Nevertheless, the report published by REN21,Renewables 2025 Global Status Report, issues a cautionary note: the current rate of progress remains insufficient to meet the ambitious international climate targets. To achieve the COP28 goal of tripling renewable capacity by 2030, approximately 800 GW more capacity than currently projected must be added. Notably, only solar PV is advancing at a pace consistent with meeting this target.

In 2024, global energy demand grew by 2.2%, primarily driven by emerging economies, with China playing a significant role. Electricity consumption increased by 4.3%, propelled by sectors such as artificial intelligence, cooling, transport, and industry. Consequently, fossil fuel use rebounded, global CO₂ emissions rose by 0.8%, and coal-fired power generation reached a new historic peak.

It is imperative to consider sectors beyond the power system. Heating and fuels constitute over three-quarters of final energy consumption, yet renewables currently satisfy only 5.7% of this demand. Furthermore, electrification across end-use sectors remains slow and uneven, constraining the overall effectiveness of the energy transition.

Despite continued growth in renewable energy capacity, the report highlights that this progress is not supported by robust structural foundations: the lack of comprehensive energy planning, stable regulatory frameworks, modern grid infrastructure, and accessible financing mechanisms raises concerns about the sustainability of current momentum.

Without systemic transformation of the energy model, supported by decisive policy measures and long-term strategic planning, the transition to a cleaner and more resilient economy risks falling short of its objectives.

Source: Renewables 2025 Global Status Report: Global Overview