
Annual investment of 1.5 trillion dollars: Key to tripling renewable capacity by 2030
The International Renewable Energy Agency (IRENA) bids farewell to 2024 with a report summarizing the progress of renewable energies over the past 365 days. The progress has been notable, but the pace of change remains insufficient to meet the ambitious goal of tripling renewable capacity by 2030, a key milestone for keeping the global temperature rise below 1.5°C.
The report highlights a 14% increase in renewable energy capacity. 2023 set a record in renewable energy deployment in the power sector, reaching a total capacity of 3,865 GW globally. Renewable energies accounted for 86% of capacity additions, with 473 GW of renewable energy expansion, once again led by Asia, which accounted for 69% of the growth.
However, the progress is not enough to reach the goal of tripling renewable energy by 2030. A minimum annual growth of 16.2% is required to achieve the target by 2030.
Investment
Regarding investment, the report highlights that the world invested a record $570 billion in renewable energy in 2023. However, investment is not equitable, as emerging and developing economies face deficits and financing drops, such as in Africa.
To meet the goal of tripling renewable capacity by 2030, annual investment in renewable capacity would need to triple, from $570 billion in 2023 to $1.5 trillion per year between 2024 and 2030.
Job growth in the renewable sector
In 2023, there was the largest increase in jobs in the renewable energy sector in history. Employment rose from 13.7 million in 2022 to 16.2 million, representing an 18% year-on-year jump.
The growth reflects the strong increase in renewable energy generation capacities, along with a continuous expansion in the manufacturing of equipment. Despite these encouraging figures, they are far from the 30 million jobs needed by 2030.
Renewable energy as the most economical alternative for the future energy landscape
Of the record 473 GW added in 2023, 81% or 382 GW of recently commissioned utility-scale renewable projects had lower costs than their fossil-fuel-powered alternatives. This provides countries with a compelling commercial and investment argument for tripling renewable energy by 2030. Renewable energy generation has become the default source of new, lower-cost energy generation.
Meanwhile, the cost of storage projects has dropped by 89% between 2010 and 2023, making it easier to integrate high proportions of solar and wind capacity by addressing grid infrastructure challenges.
To triple renewable energy capacity by 2030, electrical systems will need to accommodate much higher proportions of variable renewable energy, which requires modernized and expanded grids, as well as energy storage infrastructure.
The role of digitalization and AI in the energy transition
Digitalization is a vital enabler of the energy transition, and its applications in electrical infrastructure play a key role in facilitating the tripling of energy capacity by 2030.
Given the growing complexity of electricity system operations, digital solutions and AI applied to electrical infrastructure are essential for adapting systems to new and challenging conditions, driving efficiency and innovation.
The need to align energy plans with global goals
The NDCs 3.0 that must be submitted in 2025 should reflect the global goal of tripling renewable energy capacity by 2030. In 2024, unprecedented achievements were reached that positively shaped the renewable energy landscape.
However, the need for accelerated action to align global efforts with the goals of the Paris Agreement and the Sustainable Development Goals has never been more urgent.
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