Countries around the world have recognized the urgent need to increase the capacity of renewable energy sources (RES). It is predicted that, thanks to supportive policies and favorable economic conditions, global RES capacities will rise by the end of this decade to a level currently held by China, the European Union, India, and the United States combined.
The new Renewable Energy Report for 2024, published by the International Energy Agency (IEA), indicates that the world could add more than 5,500 gigawatts of new capacity by 2030. The solar sector will account for around 80 percent of this growth, with China projected to hold about 60 percent of the total global renewable capacity by the end of the decade.
However, the path toward tripling renewable energy capacity comes with certain challenges. In many developing countries, financing costs remain high, reducing the economic attractiveness of investments. Additionally, underdeveloped electricity grid infrastructure is a persistent issue. Without adequate investments in this segment, there is a risk of more frequent disruptions in the supply of renewable energy, which has already been recorded in countries like Chile, Ireland, and the United Kingdom.
Another challenge is the lack of transparency in renewable energy auctions, which leads to uncertainty among investors due to unclear information. This situation complicates planning and reduces interest in investments.
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In the solar energy sector, solar panel manufacturers are facing an oversupply in the market, causing prices to fall. This leads to reduced profits and losses for manufacturers. On the other hand, the wind turbine sector requires additional investments to avoid supply chain issues. It is necessary to increase the production capacity of wind turbines and optimize the processes of transporting and delivering parts.
To overcome the mentioned challenges, one of the key steps is to create stable political environments with clear and long-term goals for RES development. Governments should establish transparent and predictable auction mechanisms, which will result in greater investor confidence and risk reduction. Many projects are ready and waiting to be connected to the grid, but the grid infrastructure remains a problem that must be addressed.
It is also necessary to increase the flexibility of energy systems, which is essential for optimizing the use of RES, as sources like solar and wind are variable. Additionally, work needs to be done on developing long-term energy storage, which will store excess energy until there is a demand for it. Developing energy consumption management technologies is also important, allowing consumers to optimize their energy use based on current grid conditions. This means that smart devices activate when energy is cheaper and more available, reducing grid strain during times of high demand.
Besides wind and solar energy, innovations in technologies for developing hydrogen, e-fuels, and modern biofuels should be encouraged. It is important to emphasize that, although RES will play a significant role in the industry, transport, and building sectors, fossil fuels will still dominate, with an 80 percent share. Therefore, it is crucial to phase out fossil fuel subsidies and introduce stronger policies to reduce their usage.
