IRENA Advisory Calls Renewable Energy Shift Key To Tackling Global Energy Crisis –  Report

A recent policy advisory from the International Renewable Energy Agency highlights how ongoing conflict in the Middle East is driving a global energy crisis by disrupting oil and gas supplies and triggering sharp price volatility. These disruptions are not limited to the energy sector alone but are also affecting food systems, transportation, and overall economic stability. Vulnerable communities are facing the most severe impacts, as rising fuel costs translate into higher living expenses. In this context, the agency stresses that shifting to renewable energy is no longer only an environmental priority but has become a critical strategy for ensuring national energy security.

In the short term, covering the next six months, the advisory calls for the urgent deployment of distributed renewable energy systems to support essential services such as hospitals and food production units. It recommends rapidly installing solar and battery-based mini-grids, especially in remote and underserved areas, to reduce dependence on costly diesel fuel. Governments are also encouraged to introduce public awareness campaigns to reduce electricity consumption during peak hours. At the same time, removing trade barriers on renewable energy equipment like solar panels and battery storage systems can help speed up adoption and reduce costs.

Looking at the medium-term period of six to twelve months, the focus shifts to strengthening existing energy infrastructure. The agency emphasizes the importance of continuing grid expansion and modernization projects, even in the face of inflationary pressures. Improving system flexibility is another key priority, which includes promoting battery storage solutions and encouraging consumers to participate in demand-side management programs. These measures can help integrate a larger share of renewable energy sources, such as solar and wind, into the grid. Additionally, expanding renewable-based heating solutions, including heat pumps and solar water heaters, can significantly cut reliance on gas for heating purposes.

For long-term resilience over the next one to three years, the advisory recommends establishing stable and transparent policy frameworks to attract large-scale investments in renewable energy. Developing domestic and regional supply chains for clean energy technologies is seen as essential to reducing dependence on imports and ensuring energy security. It also suggests that any continued financial support for fossil fuel industries should be linked to clear renewable energy targets, encouraging a gradual transition toward cleaner alternatives.

The economic argument for this transition is becoming increasingly strong. In 2025, around 692 gigawatts of new renewable capacity were added worldwide, bringing renewables close to half of the total global installed power capacity. Costs have dropped significantly over the years, with solar photovoltaic technology becoming 87 percent cheaper since 2010 and battery storage costs declining by 93 percent. As a result, about 91 percent of newly installed utility-scale renewable energy capacity is now more cost-effective than the cheapest fossil fuel options.

Several countries are already showing the benefits of early adoption. Spain and Portugal have reduced their exposure to energy price fluctuations by expanding solar and wind capacity. Pakistan has imported large volumes of low-cost solar panels, helping households manage energy expenses. Meanwhile, China and Vietnam have seen rapid growth in electric vehicle adoption, reducing dependence on oil for transportation.

The advisory concludes that increasing the share of renewable energy, along with electrification and energy storage, provides the most reliable way to protect economies from fossil fuel shocks. By reducing dependence on global fuel markets, countries can achieve more stable energy prices and ensure long-term economic growth.