Global Development of Renewable Energy Shows Imbalances Despite 15% Increase, According to IRENA
The COP28 pledge aims to quadruple renewable energy by 2030, but the worldwide transition to renewable energy is accelerating at a pace that varies significantly across regions. Asia is leading the charge, while Africa is struggling to attract the necessary investments and overcome infrastructure challenges.
In 2024, Asia accounted for 71% of new renewable energy capacity, with solar PV accounting for around 450 GW of new installations. This growth is driven by robust investments, supportive government policies, and technological advancements, particularly in solar energy.
However, Africa's renewable growth remains limited, with only a 7.2% annual increase, despite vast untapped renewable resources. The continent struggles to attract the levels of international green finance seen in Asia, largely due to perceived higher investment risks, lower project bankability, and underdeveloped capital markets.
Lack of strong institutional frameworks, regulatory certainty, and grid infrastructure also hinders the scaling of renewables in Africa. Furthermore, limited local technological capabilities and dependence on external expertise constrain rapid adoption.
To close this investment gap and unlock Africa's renewables potential, several measures are necessary. Enhanced international funding and finance models, such as mobilizing long-term, concessional finance and de-risking instruments targeted at African renewables projects, can improve bankability and investment attractiveness.
Strengthening policy frameworks and regulatory reform, including the development of comprehensive renewable energy policies, clear targets, feed-in tariffs or auction programs, and streamlined permitting, can stimulate domestic and foreign investment.
Technology collaboration and capacity building, facilitated through joint infrastructure projects between Asia and Africa, can leverage experience, reduce costs, and build local skills. Regional cooperation and integration, through continental and regional grid interconnections, can increase infrastructure efficiency and enable larger renewable projects.
IRENA Director General Francesco La Camera and UN Climate Change Executive Secretary Simon Stiell have emphasized the need for focused policies, global funding, and technological collaborations to close the gap in renewable energy growth and ensure fair socioeconomic development. They urge expedited efforts to fulfill the COP28 pledge and meet global climate targets.
The transition to renewable energy is expected to have a positive impact on the environment, increase resilience, and generate jobs. In 2023, approximately 30% of the world's total power generation was from renewable sources, with the amount of electricity generated from renewable sources increasing by 5.6% to approximately 9,000 TWh.
Europe and North America contributed 12.3% and 7.8%, respectively, to the increase in renewable energy in 2024. Solar and wind energy accounted for 97.5% of the new capacity added in 2024.
While Asia is leading the way in renewable energy growth, it is essential to resolve regional disparities to ensure the success of the global renewable energy revolution and a sustainable and just future for all.
- Environmental science courses should include comprehensive studies on renewable energy transitions, as understanding the global shift towards renewable sources is crucial for ensuring a sustainable future.
- The environmental industry is urging increased financial investments in renewable energy projects across Africa to bridge the investment gap and reap the benefits of a greener environment.
- ESG reporting for financial institutions should prioritize the assessment and management of risks and opportunities related to climate change, renewable energy, and environmental science to align with global environmental goals.
- Supporting government policies, robust investments, and technological advancements in solar energy can stimulate the growth of renewable energy in various regions, as demonstrated by Asia's impressive renewable energy capacity increase.
- Climate-change mitigation efforts require focused international funding and finance models to de-risk renewable energy projects in Africa, along with strengthened policy frameworks and regulatory reforms to stimulate domestic and foreign investments.
- The development of renewable energy cannot be equitable without addressing regional disparities, as Asia's rapid growth in renewable energy contrasts with Africa's struggle to attract necessary investments and overcome infrastructure challenges.
