IEA: More than a third of the world’s electricity will come from renewables in 2025 - The World Economic Forum
Published June 03, 2026
IEA Reports Renewable Energy to Account for Over a Third of Global Electricity by 2025
According to the International Energy Agency (IEA), renewable energy sources are projected to provide more than one-third of the world's electricity by the year 2025. This significant shift in energy production underscores the growing role of renewables in the global energy landscape, driven by advancements in technology and increasing demand for cleaner energy solutions.
The IEA's latest report highlights that renewable energy's share of the global electricity mix is set to rise from 29% in 2020 to 35% by 2025. This transition is largely attributed to the rapid expansion of solar and wind power, which are expected to dominate the renewable energy sector. The report indicates that the growth of these technologies is outpacing previous expectations, fueled by declining costs and supportive government policies.
In 2020, the world added approximately 280 gigawatts (GW) of renewable energy capacity, with solar power accounting for over half of this increase. Wind energy also saw substantial growth, with new installations contributing significantly to the overall capacity. The IEA forecasts that global renewable electricity capacity will increase by nearly 60% over the next five years, reaching around 4,800 GW by 2025.
Regional Highlights
The report outlines regional developments in renewable energy adoption. Asia is expected to lead the way, with China remaining the largest market for renewable energy. The country is anticipated to add more than 200 GW of solar and wind capacity annually, significantly contributing to its energy transition goals. India is also making strides, with a projected increase in its renewable capacity as it seeks to meet its ambitious targets for clean energy.
In Europe, the shift towards renewables is being accelerated by the European Union's Green Deal, which aims to make Europe the first climate-neutral continent by 2050. The IEA notes that investment in renewable energy in Europe is expected to rise, driven by policy frameworks and the increasing competitiveness of renewables.
North America is also witnessing a surge in renewable energy projects, particularly in the United States, where both federal and state-level initiatives are promoting clean energy technologies. The IEA predicts that the U.S. will see significant growth in wind and solar capacity, supported by tax incentives and a growing demand for clean energy solutions.
Investment Trends
Investment in renewable energy is expected to reach unprecedented levels in the coming years. The IEA estimates that global investment in renewable energy will exceed $2 trillion annually by 2025. This influx of capital is essential for scaling up renewable technologies and improving energy infrastructure to accommodate the increasing share of renewables in the energy mix.
Private sector participation is crucial in driving this investment surge. Corporations are increasingly committing to renewable energy through power purchase agreements (PPAs) and direct investments in renewable projects. This trend is not only helping to finance new renewable capacity but also enabling companies to meet their sustainability goals and reduce carbon footprints.
Challenges and Opportunities
While the outlook for renewable energy is positive, the IEA report also identifies several challenges that must be addressed to ensure the successful transition to a cleaner energy future. Grid integration remains a significant hurdle, as the variability of renewable energy sources necessitates advancements in grid infrastructure and energy storage solutions.
Additionally, the report emphasizes the importance of policy frameworks that support renewable energy development. Governments play a critical role in creating an enabling environment for investments in renewables, including providing incentives, streamlining permitting processes, and enhancing grid connectivity.
Technological innovation will also be key to overcoming these challenges. Continued research and development in energy storage, smart grid technologies, and energy efficiency will be essential for maximizing the potential of renewable energy sources and ensuring a reliable energy supply.
Conclusion
The IEA's projections indicate a transformative shift in the global electricity landscape, with renewables set to play a central role in meeting the world's energy needs. As countries around the world ramp up their efforts to transition to cleaner energy sources, the anticipated growth in renewable energy capacity presents both challenges and opportunities. The commitment to investment, innovation, and supportive policies will be critical in shaping a sustainable energy future for generations to come.
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