Global energy transition still off track as renewable investment lags

The world needs to install 1,100 GW of renewables yearly by 2030.

The global energy transition remains “off track” despite record-high renewables growth in 2023, according to the International Renewable Energy Agency (IRENA), adding that the world needs an additional 7.2 terawatts of renewables to reach the 2030 targets.

In a statement, the IRENA said the current projections show that the target will remain “out of reach.”

“Accelerated investments in infrastructure and system operations (e.g. power grids, storage), revised policies and regulations (e.g. power market design and streamlined permitting), measures to fortify supply chains and cultivate requisite skills, and substantial increases in investments – including public funds facilitated through international collaboration – are imperative,” the IRENA said.

ALSO READ: Asia to lead grid expansion investments

IRENA noted that the evolving policies, geopolitical shifts and declining costs will contribute to propelling the renewable energy market but persistent structural barriers and insufficient investments remain a concern.

The world needs to install nearly 1,100 gigawatts of renewables annually by 2030, with annual investments reaching around $1.6t on average between 2024 and 2023, from $570b in 2023.

“We urgently need a systemic shift away from fossil fuels to course-correct and keep the tripling goal within reach,” said IRENA Director-General Francesco La Camera.