IRENA analysts project solar PV manufacturing investments in 2025-2026 to decline to just 1/3rd of the level seen in 2023-2024, even as countries outside China and Southeast Asia diversify their supply chains. India, with its Production Linked Incentive (PLI) scheme, is expected to more than triple its share of global investment from 2.5% in 2023-2024 to almost 8% in 2025-26.
The US policy vis-à-vis its long-term trading partner India may have some impact from the buildout of new factories in the country, as the North American nation accounted for 97% of the Indian solar PV module exports in 2024. “The latest tariffs may curtail US-India solar PV trade, diminish margins on exports, and even slow the buildout of new factories in India,” cautions the report.
On the other hand, battery storage capacity continues to expand as the world added 74 GW or around 180 GWh in 2024, almost doubling from the annual additions in 2023. China accounted for the lion’s share with 39 GW, followed by the US with close to 12 GW, and Europe with approximately 11.5 GW.
Challenges and Recommendations
Despite growth in renewable energy capacity, its distribution remains highly uneven. According to the report, by the end of 2024, Asia, Europe, and North America held 85.4% of the total, while the rest of the world shared just 14.6%.
Africa, for instance, with its huge off-grid population and ample renewable energy potential, needs to see the benefits of expanding clean energy to meet its rising electricity demand and provide broader energy access. The continent has only 70 GW of renewable capacity, and added only 7.4 GW in 2024. It requires 38 GW of annual additions over the next 6 years to achieve the required capacity of around 300 GW for the continent under the 1.5°C Scenario.
UN Secretary-General António Guterres stressed, “Renewables are deployed faster and cheaper than fossil fuels – driving growth, jobs, and affordable power. But the window to keep the 1.5°C limit within reach is rapidly closing. We must step up, scale up and speed up the just energy transition – for everyone, everywhere.”
The report urges countries to update their national climate plans (NDC 3.0) ahead of COP30 in Brazil in November 2025, double renewable ambition, and raise annual investment in renewables to at least $1.4 trillion by 2030.
IRENA Director-General Francesco La Camera added, “By raising targets, mobilising finance and deepening cooperation, major economies can lead the energy transition and make COP30 a milestone.”
The complete report titled Delivering on the UAE Consensus: Tracking progress toward tripling renewable energy capacity and doubling energy efficiency by 2030, is available for free download on IRENA’s website.
