IEA's Renewables 2024 Report: Solar and Wind Power to Transform Global Energy Landscape

According to the Renewables 2024 report from the International Energy Agency (IEA), renewable energy—like solar and wind—is expected to grow faster than ever before. Over the next five years, the world will see a huge increase in clean energy capacity as countries and companies invest more in green solutions. This growth is being driven by government policies, new technology, and the need to address climate change and energy security.

Big Increase in Renewable Energy Thanks to Government Support

The report predicts that by 2028, global renewable energy capacity will grow by over 50%, meaning more clean energy will be available to power homes, businesses, and industries. Solar power, especially solar panels (known as solar PV), will play the biggest role, with nearly 60% of new renewable energy coming from this technology. Wind power will also grow rapidly, contributing about a third of the new capacity.

Governments around the world are making big decisions to push this growth. For example, the United States has passed the Inflation Reduction Act (IRA), which provides financial support for renewable energy projects. In Europe, the Green Deal Industrial Plan is helping to speed up the transition to clean energy, while China continues to invest heavily in solar and wind.

Solar and Wind Energy Leading the Way

Solar power is becoming the top choice for generating electricity around the world. By 2028, solar panels could provide nearly half of all new electricity generation. Solar energy is popular because it’s affordable, available almost everywhere, and can be used on rooftops or in large solar farms.

Wind energy is also growing quickly, especially offshore wind farms—these are wind turbines placed in the ocean where winds are stronger and more consistent. Offshore wind farms can produce a lot of energy, and Europe is currently the leader in this area. However, the United States and some Asian countries are also investing heavily in offshore wind projects.

Energy Security: Why Renewable Energy Is More Important Than Ever

The war in Ukraine has caused major disruptions in global energy markets, particularly for countries that rely on fossil fuels (like oil and gas) from other nations. This has pushed many governments to focus on renewable energy as a way to improve their energy security. By producing more clean energy at home, countries can reduce their reliance on imported fossil fuels and protect themselves from rising prices and supply shortages.

One challenge with renewable energy is that it can’t always produce electricity at all times (for example, solar panels don’t work at night, and wind turbines need wind to turn). To fix this, many countries are investing in new technology like battery storage, which allows them to store electricity for later use.

A Look at Renewable Energy Demand: 2023 to 2030

Renewable electricity will make up a large portion of the overall growth in demand by 2030. The transport sector, though relatively smaller in its use of renewables, will still see significant growth, particularly in the use of renewable fuels. This growth reflects how different sectors—electricity, heat, and transport—are increasingly relying on renewable energy. For example, the heat sector includes using renewables in industrial processes and buildings, while transport includes biofuels used in cars, planes, and ships.

Challenges: Supply Chain and Permit Delays

While the future of renewable energy looks bright, the IEA report also points out some obstacles that could slow down progress. One issue is supply chain problems, which affect the production of solar panels and other renewable technologies. This has been made worse by the high demand for critical minerals like lithium, cobalt, and nickel, which are needed to make batteries and solar panels.

Another big challenge is the permitting process, which refers to getting government approval to build renewable energy projects. This process can take a long time, especially for large projects like wind farms. Streamlining this process could help speed up the deployment of new renewable energy infrastructure.

Source: Renewables 2024 Report