The Middle East witnessed its most significant expansion in renewable energy capacity on record last year, with a remarkable 16.6 percent annual increase, marking the commissioning of 5.1 gigawatts of new capacity.
Presently, the total capacity in the region stands at 36 gigawatts, representing a modest 0.9 percent share of the global capacity.
Asia emerged as the dominant driver of renewable energy expansion globally, contributing approximately 69 percent of the total increase. The region saw a substantial growth in renewable capacity, adding 327.8 gigawatts to reach a cumulative capacity of 1,961 gigawatts, which accounts for 50.7 percent of the global total.
China, the world’s second-largest economy, played a pivotal role in this surge, with its capacity expanding by an impressive 63 percent to approximately 298 gigawatts. The increasing competitiveness of solar and wind energy, compared to coal and natural gas, has propelled renewable power development in China.
Europe and North America also witnessed significant growth, with capacities expanding by 71.2 gigawatts (10 percent increase) and 34.9 gigawatts (7 percent increase), respectively. The European Union’s renewable energy capacity growth was underpinned by policy focus, energy security concerns, and the improving cost-competitiveness of renewables compared to fossil fuels.
The G7 countries collectively increased their capacity by 7.6 percent, adding 69.4 gigawatts, while the G20 nations boosted their capacity by 15 percent, reaching 3,084 gigawatts.
In Oceania, installed capacity grew by 9.4 percent, primarily driven by Australia, while South America reported an 8.4 percent annual expansion.
Africa recorded a modest increase in renewable energy capacity of 4.6 percent, resulting in a total capacity of 62 gigawatts. However, financing renewable energy projects remains challenging in Africa due to limited access to capital, high upfront costs, and perceived investment risks.
Addressing the urgent need for policy interventions and global action, Francesco La Camera, Director-General of the International Renewable Energy Agency (Irena), emphasized the necessity of overcoming structural barriers and creating local value in emerging markets and developing economies. He underscored the risk posed by concentration patterns in geography and technology, hindering the achievement of renewable energy targets.
The global commitment to triple renewable energy capacity by the end of the decade was reaffirmed at the Cop28 climate conference in Dubai last year, with over 100 countries pledging to accelerate efforts towards decarbonization. However, some major economies, including China and India, refrained from signing the pledge and expressed reservations about curbing investments in coal-fired power plants.
Despite the challenges, renewable energy is poised to surpass coal as the leading source of electricity generation, with solar accounting for 73 percent of the renewable growth last year, reaching 1,419 gigawatts, followed by wind power with a 24 percent share, according to Irena.