Renewable energy at a turning point

Renewable energy is no longer a long-term promise. It has become one of the central pillars of the global energy system.

Over the past decade, solar and wind power have expanded at an extraordinary pace, driven by falling technology costs, growing investment, energy-security concerns and increasingly ambitious climate policies. In 2025, the world once again reached a new milestone, adding around 692 GW of renewable power capacity in a single year.

Solar photovoltaic technology continues to lead this transformation, while wind power remains a fundamental component of the global energy mix. At the same time, new challenges are emerging: electricity grids must adapt, energy storage needs to grow, and the geographical distribution of renewable resources does not always coincide with the location of demand.

The question is therefore no longer whether renewable energy will grow, but how quickly the global energy system can adapt to this new reality.

2025: another record year for renewables

The figures from 2025 illustrate the scale of the transformation.

Around 692 GW of renewable capacity was added worldwide during the year, representing another record and confirming the continued acceleration of the energy transition.

Solar photovoltaic power accounted for the largest share, with approximately 511 GW of new capacity. Wind energy followed with around 159 GW, while hydropower and other renewable technologies contributed the remainder.

The numbers are significant not only because of their size, but also because they demonstrate the increasingly dominant role of solar and wind in new electricity generation investments.

Solar technology, in particular, has benefited from rapidly declining costs, improvements in efficiency and the scalability of photovoltaic installations. From large utility-scale projects to residential rooftop systems, solar power can now be deployed in a remarkably wide range of environments.

Solar power: the main driver of growth

Solar photovoltaic energy has become the undisputed engine of renewable expansion.

Its advantages are relatively straightforward: photovoltaic systems can be installed quickly, projects can range from a few kilowatts to several gigawatts, and the technology has experienced dramatic cost reductions over the last decade.

The expansion of solar is particularly strong in Asia, where China continues to account for a very large proportion of new global capacity.

But the solar revolution is not limited to China. India, the United States, Europe, the Middle East and other regions are also rapidly increasing their photovoltaic capacity.

This growth is transforming the electricity system itself. Solar power can produce enormous quantities of low-carbon electricity during daylight hours, but its variable nature also creates a fundamental challenge: what happens when the sun is not shining?

That question brings us to one of the key technologies of the coming decade: energy storage.

Wind power remains essential

Wind energy continues to play a major role in the global renewable landscape.

With around 159 GW of new capacity added in 2025, wind power remains one of the most important sources of new electricity generation worldwide.

Onshore wind farms continue to dominate in many markets, while offshore wind offers significant long-term potential, particularly in countries with limited available land and strong coastal resources.

However, the wind industry also faces challenges. Project development can take longer than for solar installations, permitting processes can be complex, and supply-chain and financing issues have affected the pace of deployment in some markets.

Despite these obstacles, wind power remains a key component of the global energy transition, particularly because wind generation patterns can complement solar production in many regions.

Asia continues to lead the transformation

The geographical distribution of renewable growth is far from uniform.

Asia, and particularly China, is at the centre of the global expansion. The region has enormous manufacturing capacity, large domestic markets and significant investment in both renewable generation and associated infrastructure.

China has become a global leader in solar panels, batteries and other clean-energy technologies, while also installing renewable generation at an unprecedented scale.

Other Asian economies, including India, are also expanding their renewable capacity rapidly.

Europe and North America continue to invest heavily as well, although their development is influenced by different factors, including energy security, industrial policy, grid constraints and regulatory frameworks.

Africa: enormous potential, major challenges

Africa represents one of the most interesting paradoxes in the global energy transition.

The continent possesses some of the world’s best solar resources and significant wind, hydro and geothermal potential. At the same time, hundreds of millions of people still lack reliable access to electricity.

Renewable energy could therefore play a dual role in Africa: helping to decarbonise electricity generation while simultaneously expanding access to modern energy services.

However, achieving this potential requires substantial investment in transmission networks, distribution infrastructure, financing mechanisms and energy systems capable of integrating variable renewable generation.

The challenge is not a lack of resources. It is the ability to transform those resources into reliable and affordable electricity.

Renewables already represent a major share of electricity generation

Installed capacity is only part of the story.

What ultimately matters is how much electricity renewable technologies actually produce.

By 2025, renewable sources accounted for approximately 34% of global electricity generation, reflecting the growing importance of solar, wind, hydro and other renewable technologies.

This percentage is expected to continue increasing throughout the coming decade.

Nevertheless, the transition will not simply consist of replacing fossil-fuel power plants with solar panels and wind turbines. Electricity demand itself is growing as transport, heating, industry and data centres become increasingly electrified.

This means that the world will need not only more renewable generation, but much more electricity overall.

Storage and electricity grids: the next great challenge

The rapid expansion of solar and wind power is exposing one of the most important limitations of today’s electricity infrastructure.

Renewable generation is often variable, while electricity demand must be balanced continuously.

Energy storage can help bridge this gap.

Battery storage is expanding rapidly, particularly in combination with large-scale solar installations. Pumped hydroelectric storage remains important, while other technologies—including long-duration storage, hydrogen and thermal storage—could play increasingly significant roles in the future.

At the same time, electricity grids will need massive investment.

New transmission lines will be required to connect areas with abundant renewable resources to major centres of consumption. Distribution networks will also need to become more flexible and digitalised.

In many countries, the grid rather than generation capacity is becoming one of the main bottlenecks of the energy transition.

What can we expect by 2030?

The outlook for the end of the decade is ambitious.

Current projections indicate that the world could add around 4,600 GW of additional renewable capacity by 2030.

If this expansion continues, renewable sources could account for around 43% of global electricity generation by 2030.

These figures would represent a profound transformation of the global electricity system.

But achieving them is not guaranteed. Investment, permitting, grid infrastructure, access to finance, supply chains and political stability will all influence the speed of deployment.

The transition is therefore not simply a technological challenge. It is also an infrastructure, financial and organisational challenge.

A changing global energy system

The renewable energy revolution is already reshaping the global energy landscape.

Solar photovoltaic and wind power are becoming the main sources of new renewable capacity, while batteries and other storage technologies are developing rapidly. At the same time, electricity grids are becoming increasingly important strategic infrastructure.

The transition will also have profound industrial consequences.

Countries that develop strong positions in solar manufacturing, batteries, grid technologies, energy storage and other clean-energy industries may gain significant economic opportunities. At the same time, economies traditionally dependent on fossil-fuel exports will face a changing global energy market.

The energy system of the future will therefore be very different from the one that dominated the twentieth century.

Conclusion: the transition has entered a new phase

The global expansion of renewable energy is no longer a marginal trend. It is one of the defining transformations of the modern energy system.

The record 692 GW of renewable capacity added in 2025 demonstrates the extraordinary pace of change. Solar power is leading the expansion, wind remains essential, and regions such as Asia are driving a large proportion of global growth.

But the next stage will be more complex.

Building renewable generation is only one part of the challenge. The world will also need stronger electricity grids, large-scale energy storage, greater flexibility and significant investment in infrastructure.

The coming years will determine how effectively these different elements can be integrated.

One thing, however, is increasingly clear: renewable energy is no longer simply part of the future of the global energy system. It is already shaping its present.