World Breaks Renewable Records
But Trade Barriers, MarketUncertainty and Policy Gaps Stall Progress.
REN21’s latest report warns that even as renewable energy hits record highs, progress is faltering –
undermined by unclear policies, mounting trade restrictions and deepening market volatility amid
rising global energy demand.
Key Messages:
- Energy demand rose 2.2% in 2024, mostly in emerging economies and China, with electricity
use up 4.3% for AI, cooling and transport. Fossil fuel use increased as a result, raising CO₂
emissions by 0.8%. - Record 740 GW of renewable power capacity added in 2024, but this is still less than half of
what is needed to meet the COP28 global target to triple renewables capacity by 2030. - Only solar PV is on track to meet the global target (81% of new power capacity). Rooftop
solar grew 22% in developing countries, signalling a shift toward decentralised energy
systems. - Corporate Power Purchase Agreements grew by an estimated 69 GW, a 35% increase from
2023, driven by major tech companies and industry seeking stable prices and sustainable
energy supply. - Trade measures surged from just 9 in 2015 to 212 in 2024, including over 50 restrictions on
solar PV, underscoring growing tensions over access to clean technologies.
A record-breaking 740 gigawatts of renewable power capacity was added in 2024, by far the
largest annual increase to date. Solar PV accounted for more than three-quarters of that growth,
reflecting falling technology costs and surging demand. Yet this record progress is not enough to
meet the global goal to triple renewable capacity by 2030.
REN21’s latest report, the Renewables 2025 Global Status Report: Global Overview reveals a deeper
and more troubling picture – while renewable deployment is surging, systemic transformation is
stalling.
Despite the ambition to triple capacity this decade, current trajectories suggest a shortfall of 6.2
terawatts—more than all renewables deployed to date. Only solar PV is currently on track to deliver
its full contribution to meeting the target.
We must think beyond the power system: heat and fuels account for more than three quarters of
total final energy consumption (TFEC), yet renewables only meet 5.7% of this demand and
electrification across end use is slow and uneven across sectors. Long-term energy planning and
institutional reform are needed to enable an economy-wide energy transition and accelerate the
shift to renewables. Rising energy demand (+ 2.2% in 2024), along with mixed policy signals and
market uncertainty are hindering progress at this critical moment.
“We are deploying renewables in record numbers, but we are not building the systems needed to
transition to a renewables-based economy,” said Rana Adib, Executive Director of REN21. “Without
coherent policies, coordinated planning, and resilient infrastructure including grids and storage, even
record deployment cannot deliver speedy and lasting transformation. Renewables must now be
treated as core economic infrastructure — essential for energy security, resilience and prosperity.”
A TRANSITION AT RISK
2024 and early 2025 saw major economies roll back or delay climate and sustainable energy
measures, from the US withdrawal from the Paris Agreement to New Zealand reversing its ban on
offshore oil and gas exploration, while the UK announced it is stepping back from its planned ban on
the sale of new gas boilers by 2035. Only 13 countries met the UN’s February deadline to submit
updated Nationally Determined Contributions (NDCs) for 2025–2035. This reflects a wider trend of
decreased ambition due to shifting political dynamics, economic pressure and short-term decision
making.
At the same time, the number of trade measures targeting renewables and related technologies
jumped from just 9 in 2015 to 212 in 2024—including 51 related to solar PV, 32 for wind and 51 for
batteries. These trade measures, while intended to strengthen domestic markets and industries, are
also creating supply uncertainty and delaying project implementation globally.
Oil companies and banks are backpedalling on their commitments and pausing transition-related
investments, casting doubt on the reliability of voluntary contributions to the energy transition.
“Governments, investors and organisations need to act now. Short-term thinking won’t deliver the
systemic changes needed to unlock the full benefits of renewables and delaying action will increase
(climate, economic and security) risks and costs,” Adib added. “We must align policies, planning and
finance now to support a full transformation of our economies and societies.”
Many companies, especially in the tech and industry sectors, increased renewable procurement by
69 GW through power purchase agreements (PPAs), a 35% increase from 2023, indicating that
renewables are a strong economic choice. Strong demand signals remain, from rooftop solar uptake
in countries like Pakistan and South Africa, to record global EV sales, representing more than 1 out of
5 car sales in 2024. However, EV sales slowed in parts of Europe as subsidies were reduced, and
deployment of wind and heat pumps stagnated or decreased in several markets.
Investment in 2024 reached 728 billion USD, but remained heavily concentrated in a few markets,
notably in China, the EU and the U.S. Combined with rising and uneven capital costs — which are
often twice as high in low-income countries compared to developed economies — this is making it
significantly harder for many countries to scale up renewable energy deployment. Moreover, there is
currently an investment gap of 772 billion USD to reach the 1.5 trillion USD annual target.
Ramón Méndez Galain, President of REN21 and former Energy Secretary of Uruguay, added: “The
energy transition is an opportunity to transform the foundations of our economies. Renewables are a
catalyst for systemic change, but only if governments, investors and organisations align behind longterm strategies rather than short-term signals. Systemic change means moving beyond targets to
implementation across institutions, sectors and policies.”
REN21 urges governments, industry, and international institutions to move beyond deployment
targets and commit to system-wide reform — including long-term energy planning, modernising
grids, investing in storage, reducing energy consumption, lowering financing barriers, moving away
from fossil fuels and accelerating a fast, equitable shift to a renewables-based economy.
