Tripling Renewable Energy Capacity by 2030 Will Require $1.5 Trillion Annually

The world is falling behind in its efforts to triple renewable energy capacity by 2030, and investments will need to triple as well, rising from $570 billion in 2023 to $1.5 trillion annually from 2024 to 2030, according to a new report from the International Renewable Energy Agency (IRENA).

Despite notable progress in renewable energy installations, the current growth rate is insufficient to meet targets, IRENA stated. Based on current national plans, only half of the necessary increase in renewable capacity will be achieved by 2030, the agency warned.

Countries are expected to submit updated Nationally Determined Contributions (NDCs) by February 2025, with some revealing new goals as early as next month during the COP29 climate summit in Azerbaijan.

IRENA’s report emphasises that over $1 trillion in annual investment is needed to further accelerate the expansion of renewable energy.

To meet the global goal, installed renewable energy capacity must increase from the current 3.9 terawatts (TW) to 11.2 TW by 2030, requiring an additional 7.3 TW to be installed in under six years. However, existing national plans are projected to leave a 3.8 TW shortfall, missing the goal by 34%.

Earlier this week, the International Energy Agency (IEA) also cautioned that, despite rapid growth in renewable energy, the world remains off course to achieve the goal of tripling capacity by 2030. While global renewable capacity is expected to grow by 2.7 times, this still falls short of the tripling target, the IEA noted in its Renewables 2024 report.