Renewables 2024 Report by the International Energy Agency (IEA):
A summary of the Renewables 2024 Report
Massive Growth in Renewables: Renewable energy capacity is set to expand by 670 gigawatts (GW) in 2024, a 20% increase from the previous year, with global renewable capacity expected to reach 5,500 GW by 2030—equivalent to the total current power capacities of the U.S., China, EU, and India combined (05:08).
Economic Drivers Over Policy: The primary driver for renewable energy expansion is now economic rather than policy-driven. Solar, particularly, is the cheapest power source to build in most countries, making it highly attractive for new installations (04:08).
China and Solar Lead the Way: China alone accounts for 60% of the renewable growth, with solar power contributing another 60% of the growth. China’s industrial policies have reduced solar costs, fueling this trend (08:21).
Global Electricity Mix: By 2030, renewables are expected to generate about half of global electricity, with solar becoming the largest renewable electricity generator. Wind power is also expected to grow, especially as supply chain issues ease (07:17; 18:46).
Grid Challenges: A major bottleneck for renewables is grid connection. Currently, 1,700 GW of renewable projects await connection to power grids, over twice the new capacity expected to come online in 2024, underscoring the need for grid expansion and permitting reform (10:21).
Permitting Delays and Financing Costs: Permitting delays and high financing costs, particularly in Africa and Southeast Asia, are significant barriers. Faster permitting processes and financial risk reduction could accelerate renewable adoption (32:08).
Regional Leaders and Growing Markets: Besides China, India, the U.S., and the EU are expected to see robust renewable growth, driven by economic conditions and policy support. Middle Eastern nations, particularly the UAE and Saudi Arabia, are also increasing solar capacity, which could free up oil for export (19:27; 40:22).
Underdeveloped Technologies: Hydropower, bioenergy, and geothermal remain underdeveloped but are vital for energy stability and flexibility. Renewable hydrogen, while growing, currently constitutes a minor part of renewable expansion due to high costs (17:20; 24:00).
Europe's Shift Due to Energy Crisis: The reduction of Russian natural gas to Europe has accelerated renewable deployment as countries prioritize energy security alongside climate goals (36:08).
Future Ambitions: The IEA anticipates further positive surprises in renewable growth next year. Achieving the goal of tripling renewable capacity by 2030 requires addressing grid, permitting, and financing barriers (13:21).
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Reflective Question: With grid capacity and permitting as major bottlenecks, what innovative strategies could governments and industries adopt to expedite renewable energy deployment and enhance grid readiness?