Global Renewable Energy Capacity Reaches 3.9 TW In 2023, Falling 1.5 TW Short Of 2030 Goals – Report

The 2024 report tracks global progress towards the UAE Consensus goals of tripling renewable energy capacity and doubling energy efficiency by 2030. At COP28, 198 parties agreed on these goals, recognizing the urgent need to move away from fossil fuels in an equitable manner. The International Renewable Energy Agency (IRENA) leads the efforts to monitor and report progress, with its data revealing mixed outcomes.

In 2023, global renewable energy capacity reached 3.9 terawatts (TW), up from 3.86 TW in 2022. However, this falls short of the required compound annual growth rate of 16.4%, leaving a gap of 1.5 TW by 2030 if the current pace persists. While a record 473 gigawatts (GW) of renewable power capacity was added globally in 2023—most of it from solar photovoltaic (PV) energy—other technologies like wind, hydropower, bioenergy, and geothermal are lagging. Solar PV continues to dominate, with 346.9 GW added in 2023, marking a 73% increase from 2022.

Despite these gains, the global deployment of renewable energy remains uneven. Asia, Europe, and North America hold nearly 85% of installed renewable capacity, while Africa accounts for just 1.6%. In Sub-Saharan Africa, 571 million people still lack access to electricity, underscoring the need for targeted investments in the Global South.

In 2023, the overall investment in renewable energy reached a record USD 570 billion, but this is well below the USD 1.5 trillion required annually to meet the 2030 goals. Solar PV investments are on track, but other technologies such as wind, hydropower, and bioenergy face significant funding shortfalls. Moreover, energy efficiency improvements have been marginal, with only a 2% improvement in 2023, while a 4% annual improvement is necessary to meet the doubling target by 2030.

Energy storage technologies also play a critical role in achieving the tripling target. In 2023, battery storage capacity increased significantly, with 42 GW added, driven primarily by China, the U.S., and the EU. However, the global battery storage capacity needs to reach between 360 GW and 900 GW by 2030 to ensure grid flexibility and stability.

The report stresses that global leaders must ramp up efforts to modernize grids, address permitting bottlenecks, and enhance policy frameworks to accelerate renewable energy deployment. Without swift and concerted action, the world risks falling short of both the 11.2 TW renewable energy target and the Paris Agreement goals. The path to 2030 is achievable, but only if global efforts intensify, especially in terms of investment and policy support across all regions and technologies.