Renewable electricity generation is rapidly expanding worldwide, with global capacity projected to more than double by 2030, according to the International Energy Agency (IEA).

Led by the rapid rise of solar PV, renewables’ expansion is taking place in a context of supply chain strains, grid integration challenges, financial pressures and policy shifts.

The report sees global renewable power capacity increasing by 4,600 GW by 2030, roughly the equivalent of adding China, the EU and Japan’s total power generation capacity combined.

Solar PV will account for around 80 per cent of the global increase in renewable power capacity over the next five years – driven by low costs and faster permitting timeframes – followed by wind, hydro, bioenergy and geothermal.

Geothermal installations are expected to reach historic highs in markets like the US and Japan.

However, challenges such as supply chain issues, grid integration, and financial pressures remain.

Emerging economies, particularly in Asia, the Middle East, and Africa, are witnessing faster growth due to cost competitiveness and supportive policies.

India is set to become the second-largest market for renewables after China.

Despite overall optimism in the sector, the outlook for offshore wind has been downgraded due to policy changes and rising costs.

The US has seen a nearly 50 per cent reduction in growth expectations due to federal tax incentive phase-outs, while China’s shift to auction systems affects project economics.

Nevertheless, corporate power purchase agreements and utility contracts are driving significant expansion.

Solar PV is expected to dominate, while wind power will also grow as supply chain issues ease.

The integration of variable renewables into electricity systems requires urgent investment in grids and storage solutions.