Global Renewable Energy Growth Accelerates as Fossil Fuel Costs Rise

In a landmark report released today, the International Renewable Energy Agency (IRENA) states that renewable energy capacity additions surged by 295 gigawatts (GW) in 2022, marking a record high and outpacing fossil fuel expansion for the first time. The agency attributes this growth to soaring energy prices driven by geopolitical tensions, particularly the war in Ukraine.

“The energy transition is no longer a distant goal—it is happening now,” said Francesco La Camera, Director-General of IRENA. “Countries that accelerate their renewable energy deployments will not only reduce emissions but also achieve energy security and lower costs for consumers.”

Solar and wind energy led the expansion, accounting for 90% of new capacity. Solar alone contributed 163 GW, while wind added 117 GW. The report highlights that solar photovoltaic (PV) costs have dropped by 82% since 2010, making it the cheapest energy source in most regions.

China remained the top installer of renewable energy, adding 121 GW of new capacity, followed by Europe with 50 GW and the United States with 32 GW. The report notes that while global renewable capacity now stands at over 3,300 GW, the pace of deployment must triple by 2030 to meet climate targets.

Despite the progress, challenges remain. The report warns that half of the world’s population still lacks access to reliable electricity, with Africa and parts of Asia facing the greatest deficits. IRENA urges governments to remove policy barriers, increase financing, and expand grid infrastructure to ensure equitable access.

Analysts predict that if current trends continue, renewables could supply 40% of global electricity by 2030, up from 30% in 2022. However, achieving the 1.5°C climate goal will require even faster adoption, with renewables needing to account for 60% of electricity by 2035.

The IRENA report also emphasizes the role of energy storage and smart grids in integrating intermittent renewable sources. “Storage technologies are evolving rapidly, and their costs are falling,” said La Camera. “This will be critical for balancing supply and demand as we transition away from fossil fuels.”