The global renewable energy capacity hit another record last year, with the Iran war set to increase focus on the sector's role in energy security, the International Renewable Energy Agency (Irena) has said.
A total of 692 gigawatts was added last year, an increase of 15.5 per cent on 2024, with capacity reaching 5,149 gigawatts, the Abu Dhabi-based agency said on Wednesday.
Solar energy led the increase, accounting for 511 gigawatts, or about 75 per cent of the total growth in capacity. It was followed by wind energy, which added 159 gigawatts.
Together, solar and wind accounted for 96.8 per cent of all net renewable additions last year, “reflecting the biggest cost decrease among all renewable technologies”, Irena said.
Bioenergy took third place with 2.3 per cent annual growth, adding 3.4 gigawatts to the global capacity.
“Geopolitical tension is once again thrusting energy into the global spotlight. Escalation in the Middle East raises fresh concerns over supply security and fossil fuel price volatility,” Irena said.
“Against this backdrop, renewable energy is gaining attention to build more resilient systems that are less vulnerable to international shocks.”
Because renewables are home-grown, low-cost and can be implemented immediately, “increasing their share in national energy systems can reduce exposure to international fuel markets”, the agency added.
Saudi Arabia leads Middle East growth
The Middle East posted its largest ever year-on-year increase in renewable capacity, adding 12.7 gigawatts, an increase of 28.9 per cent. The rise was led by Saudi Arabia, which added more than 5.7 gigawatts of renewable capacity, up almost 87 per cent, Irena said.
Asia currently leads in terms of total renewable capacity with 2,891 gigawatts at the end of last year, followed by Europe with 934 gigawatts. Central America and the Caribbean had the lowest capacity, at 21.3 gigawatts.
“In the midst of uncertain times, renewable energy remains consistent and steadfast in its expansion,” said Irena director general Francisco La Camera.
“A more decentralised energy system, with a growing share of renewables and more market players, is structurally more resilient. Countries that invested in the energy transition are weathering this crisis with less economic damage, as they boost energy security, resilience and competitiveness.”
However, Irena noted that significant disparities remain in terms of geographic spread, with many developing countries left behind – a trend the agency had also observed in 2024.
China, the EU and the US accounted for 550 gigawatts, almost 80 per cent, of the new capacity added last year.
“Looking ahead, we need to see a much faster pace of growth in the stock of renewable power plants and distributed electricity generation around the world,” Mr La Camera said.
Countries around the globe continue to boost investment in energy transition to cut emissions. In 2024, the world added 582 gigawatts of renewable capacity, with investments reaching about $800 billion, Irena said.
