Renewables power 86% of global energy expansion in 2025

Solar, wind, and storage now increasingly cost-competitive with fossil fuels

Global renewable energy capacity reached a new record in 2025, with close to 700 GW of new installations, confirming continued strong growth in the sector, according to IRENA.

Renewables accounted for 85.6% of total global power capacity additions, while non-renewable sources continued to represent a shrinking share of new deployments.

The trend highlights the accelerating shift toward low-carbon electricity systems across major markets.

The report noted that the strong performance reflects the growing resilience of renewable energy systems, reinforcing their role in strengthening national energy security through domestically sourced power that is less exposed to global fuel price volatility and supply disruptions.

Technological advances and cost declines in solar, wind, and battery storage continue to improve the economic case for clean energy.

Hybrid systems combining solar and wind with storage are now capable of delivering round-the-clock electricity at costs competitive with fossil fuels.

In high-resource regions, the levelised cost of electricity for solar-plus-storage ranges from $54 to 82 per megawatt-hour (MWh).

This compares with $70–85/MWh for new coal plants in China and over $100/MWh for new gas-fired power globally, making renewables increasingly cost-competitive.

More than 85% of newly deployed renewable capacity is now cheaper than fossil fuel alternatives, strengthening the business case for accelerated investment in clean energy infrastructure.

The global energy landscape is being reshaped by ongoing disruptions affecting fuel supply chains, economies, and energy access.

As a result, energy security is increasingly defined not only by generation capacity but also by the resilience of supporting supply chains.

The report noted that reducing import dependency requires coordinated investment in domestic and regional manufacturing capacity for renewable technologies, energy storage systems, and grid infrastructure.

Governments are being urged to prioritize policies that accelerate renewable deployment alongside electrification of end-use sectors, while also strengthening supply chain resilience to mitigate future energy shocks and economic disruption.