Renewables Recap 2025: “The Good, the Bad and the Ugly”

Global renewable capacity additions reached an unprecedented 582 GW in 2024. This brings the total of installed renewable power capacity to 4443 GW globally.

Investment was also record-high with USD 2.4 trillion invested in the energy transition in 2024, a 20% increase from the average annual levels of 2022/23. About one-third of this investment was directed towards renewable energy technologies, reaching USD 807 billion.

Current additions and investment are not enough to stay on track and triple renewables to 11.2 TW by 2030, as agreed by the international community. Meeting that goal demands a staggering 1 122 GW of added capacity every year from 2025 onward, requiring annual growth to accelerate to 16.6% through the decade.

At the same time, the business case for renewables is stronger than ever. 91% of new renewable power projects commissioned were more cost-effective than any new fossil fuel alternatives.

Major economies can lead the way, raising targets, mobilising finance and deepening international cooperation.

G20 nations are projected to account for over 80% of global renewables by 2030, with the developed economies of the G7 expected to raise their share to around 20% of global capacity within this decade. Access to impact-driven financing and project facilitation activities can scale up and speed up an inclusive and just energy transition for all.

Digitalisation and Artificial Intelligence (AI) are set to become gamechangers for energy transition, turning into tools for managing variable renewable energy – from demand and price forecasting to flexibility, smart grid management and predictive maintenance of energy infrastructure.

Digitalisation can lead to lower electricity costs for end users, increased energy security and improved business performance, helping to integrate low-cost renewables. As countries modernise and expand their power systems, digital solutions should be developed in parallel with physical infrastructure and long-term energy planning.

Rising energy demand from data centres that support AI introduces both challenges and opportunities for grid planning and expansion.

There is a need for careful coordination between digital innovation and energy infrastructure development, with renewable energy being a lead power source to meet the rising demand reliably and sustainably.

Almost 92% of the world’s population has basic access to electricity, an improvement since 2022, which saw the number of people without basic access decrease for the first time in a decade.

92% of households have electricity available for basic needs such as lighting. However, reliable and affordable electricity for productive use like industry or agriculture remains limited.

The current growth rate is insufficient to reach universal energy access by 2030.

With an estimated 1.5 billion people residing in rural areas still lacking access to clean cooking, the use of off-grid technologies, such as solar PV and household biogas plants that facilitate electric cooking, can provide solutions that reduce health impacts caused by air pollution.

Regional disparities persist, both in geographical deployment of renewables and uneven investment distribution. 85% of the global population without electricity access reside in Sub-Saharan Africa, while four in five families are without access to clean cooking.

Countries and regions that attract substantial investment in renewables and advance deployment gain enhanced energy security, increased industrial activity, resilience and new jobs, fueling broader socioeconomic development. Bridging the divide and closing the investment gap between countries and regions is critical to unlock capital and technology where they are needed most.