The International Energy Agency (IEA) released its 2025 Renewable Energy Report on October 7, predicting a robust growth in global renewable energy capacity despite challenges such as supply chain issues, funding pressures, grid integration difficulties, and policy uncertainties. The report estimates that in the next five years, the new installed renewable energy capacity worldwide will reach double the increment seen in the previous five years.
From 2025 to 2030, the global renewable energy capacity is projected to increase by 4,600 gigawatts, roughly equivalent to the total current capacity of China, the European Union, and Japan combined. The report highlights that the growth in renewable energy over the next five years will be primarily driven by the solar photovoltaic (PV) industry. This is attributed to their low cost and expedited approval processes, with solar PV expected to account for approximately 80% of the growth in global renewable energy capacity.
Wind energy is anticipated to take the second spot in the share of new renewable energy capacity, despite facing short-term challenges. With the alleviation of supply bottlenecks and the advancement of projects, wind power is set for significant growth, particularly in China, the European Union, and India. Additionally, hydropower, biomass, geothermal energy, and other renewable technologies will continue to play a crucial role in supporting power systems and enhancing flexibility.
The report indicates that in emerging economies across Asia, the Middle East, and Africa, cost competitiveness and stronger policy support are driving faster growth in renewable energy. Many governments are introducing new tender programs and raising development targets. Fatih Birol, the IEA Executive Director, stated that in the next five years, solar PV is expected to show rapid growth not only in mature markets but also in countries like Saudi Arabia, Pakistan, and several Southeast Asian nations. As the role of renewable energy in the power systems of many countries continues to expand, policymakers should closely monitor challenges related to supply chain security and grid integration.
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