Powering the future: Accelerating global renewable electricity deployment and infrastructure development
Molly Walton, Director, Energy
Renewable electricity deployment is booming. In the past two years alone, both installed capacity and investments in renewables have hit new records. However, infrastructure must catch up, and more must be done to make deployment truly global.
In 2024, global investment in energy exceeded USD 3 trillion for the first time, with USD 2 trillion of this allocated to clean energy technologies and infrastructure. And last year looks set to smash through records set in 2023, when the world added a record 473 gigawatts of renewable energy capacity, a 13.9% increase on 2022. According to IRENA, solar and wind power lead renewable technologies globally, with solar contributing almost three-quarters of all new capacity in 2023.
Bridging the renewables gap
This record growth in renewables is good news. Phasing out fossil fuels, the world’s leading source of greenhouse gas emissions, is both urgent and critical.
While we have not breached the 1.5°C limit of the Paris Agreement, which is a calculation based on a 10-year average of temperatures, current figures suggest we are in a world that is already on average, 1.2°C warmer than pre-industrial levels.
To help bring emissions back within climate limits, renewable electricity deployment and investment must continue trending upward and displace fossil fuels.
More ambitious national climate plans and targets are needed across the board to deliver on the goal agreed under the UAE Consensus at COP28 in Dubai, to triple renewable electricity capacity by 2030, aligning with broader climate goals to limit global warming to 1.5°C. Despite the record deployments in renewable electricity, we are still not on track to meet this tripling goal. To meet it, renewables must grow by 16.4% annually between 2024 and 2030. Success hinges on the world working together to address key factors including grid upgrades, increased transmission capacity, attracting private sector investment and improving storage capacity.
This must also be a global transition, in which all can reap the benefits of clean energy. Solar and wind generation in the Global South has on average increased 23% per year over the past five years. But more action is needed to overcome the financial, policy and technical barriers slowing renewable electricity deployment that face many countries, especially in emerging economies.
At COP29, the New Collective Quantified Goal (NCQG) provisions were designed to bridge these gaps by mobilizing $1 trillion annually for climate finance, establishing technology transfer initiatives, and prioritizing investment in grid infrastructure for underserved regions.
On the road to COP30 in Brazil, attention will focus on how these financial flows stimulate renewable electricity growth across new geographies.
Connecting supply and demand
As renewable electricity deployment accelerates, grid infrastructure, flexibility solutions and storage are critical to balancing supply and demand. In its October 2023 report into global grid capacity, the IEA found that to reach national climate goals, over 80 million kilometers of grids must be either added or refurbished by 2040.
In developed economies, renewable electricity growth has led to new challenges, including oversupply. In Europe, the first eight months of 2024 saw a record 7,841 hours of negative electricity prices. While beneficial for consumers, this can challenge the economic viability of renewable projects. Reasons for these negative prices are nuanced, including issues with grid congestion, regulatory challenges and stagnating electrification. Investing in grids storage and flexibility and accelerating end-use electrification will help.
California addressed similar issues, marking 100 consecutive days in July 2024 where the state’s electricity needs were fully met by renewables for at least part of the day. To manage oversupply, the state expanded its battery storage capacity by over 15 times, from 770 MW in 2019 to 13,391 MW in 2024, enabling stored power to be redistributed during peak demand.
Future-proofing our renewable power potential
Beyond California’s battery storage solutions, alternatives like pumped hydro and large-scale sand batteries are also being explored. But another avenue is the growth of interconnectors between countries to share renewable power across borders.
By 2024, Europe has built the world’s largest network of energy interconnectors, facilitating cross-border power exchange and enhancing energy security. The continent has more than 400 interconnectors, linking 600 million citizens. Enabling cross-border movement of electricity can help reduce curtailment, leverage optimal locations for renewables, reduce price volatility and give confidence to investors to build new supply.
Some examples include the North Sea Link (1.4 GW) between the UK and Norway, Nemo Link (1 GW) between the UK and Belgium, and BritNed (1 GW) connecting the UK and the Netherlands. Offshore interconnections like LionLink (1.8 GW) and Nautilus (1.4 GW) connect Dutch and Belgian wind farms to the UK grid. Meanwhile in Southern Europe, the Eastern Pyrenees Underground Interconnection (2 GW) links France and Spain, while the Bay of Biscay Interconnection (2.2 GW) provides a major subsea link between Bordeaux (France) and Bilbao (Spain).
Conclusion
The global shift towards renewable electricity is not just a necessity for addressing climate change, but an opportunity to reshape the future of energy systems worldwide. As record-breaking renewable electricity deployments and investments signal progress, more work is needed to ensure grid infrastructure, flexibility and storage are in place and that equitable energy access is tackled head-on.
With the continued expansion of renewable technologies, smarter grids, and cross-border interconnections, the world is poised for a cleaner, more resilient energy future. However, the true potential of renewables can only be unlocked with strong, global collaboration, significant investments, and a commitment to overcoming geographic and financial barriers. As we look to the future, there is a critical opportunity to accelerate the just and equitable transition to clean solutions for all.