IEA Says Massive Investments Are Needed to Hit Global Renewable Energy Target

The global goal to triple renewable energy capacity by the end of the decade is still within reach, but massive investments in power grids and energy storage will be needed, the International Energy Agency (IEA) said in a new report on Tuesday.

At the COP28 climate summit in Dubai at the end of 2023, nearly 200 countries made a collective pledge to triple global renewable capacity by 2030, aiming to keep within reach the Paris Agreement target of limiting global warming to 1.5 degrees Celsius. They also committed to doubling the rate of energy efficiency improvement by 2030.

However, in order to reach these goals, all countries need to accelerate the work and deployment of renewables and energy efficiency policies.

“The goal of doubling the rate of energy efficiency improvements globally could provide larger emissions reductions by 2030 than anything else, but it looks far out of reach under today’s policy settings,” the IEA noted in the report.

The tripling of renewables capacity will need faster expansion because with today’s policy settings and technology trends, the world is on track to achieve more than three-quarters of the growth needed for the goal, says the agency advocating for a rapid energy transition.

Moreover, countries would need to make huge investments in expanding and strengthening the grids and building energy storage to accommodate the surge in renewables.

“Without grids and storage, the tripling of renewables will not succeed,” said the agency, adding that more than 25 million kilometers of electricity grids will need to be built or upgraded by 2030, and global energy storage capacity needs to grow to 1,500 GW by 2030. Of this, 1,200 GW needs to be battery storage – a nearly 15-fold increase compared to current levels.

Even if the goals are reached, “greater capacity does not automatically mean that more renewable electricity will clean up the world’s power systems, lower costs for consumers and slash fossil fuel use,” the IEA said.

Progress in renewable energy uptake in the largest energy-consuming sectors slowed globally in 2023, amid high interest rates, supply-chain issues, and regulatory and policy uncertainties in the wake of the energy crisis, renewable energy think tank REN21 said in a report in May.

By Tsvetana Paraskova for Oilprice.com

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