The global energy transition hit a major milestone in 2024. According to the latest report from the International Renewable Energy Agency (IRENA), the world added a record-breaking 582 gigawatts (GW) of new renewable energy capacity. This marks an over 15% increase from 2023 and the highest annual addition on record since IRENA began reporting.
Clean Energy Breaks Records in 2024
Most of this growth came from solar photovoltaics (PV), which made up 452.1 GW or nearly 78% of the total new capacity. Wind energy followed with 114.3 GW, while hydropower, geothermal, bioenergy, and concentrated solar power (CSP) made up the rest.
- By the end of 2024, the world’s total renewable capacity reached 4,443 GW.
China led the world in new installations. It contributed 276.8 GW of new solar capacity and 79.4 GW of wind. That means China alone was responsible for more than 60% of global solar additions and nearly 70% of new wind installations.
Other top contributors included India, the United States, Brazil, and Germany, which all made significant progress in expanding their clean energy capacity.
Even though these numbers are impressive, IRENA points out that global deployment must accelerate even faster to meet the “UAE Consensus” target agreed upon at COP28. That goal is to triple renewable capacity by 2030, reaching over 11,000 GW worldwide.
With six years left, the world will need to more than double the rate of annual additions to stay on track.
Renewables Prove the Cheapest Power Option
One of the clearest messages in the IRENA report is that renewables are now the most affordable form of new electricity generation in most countries. In 2024, 91% of newly commissioned utility-scale renewable projects produced electricity at a lower cost than fossil fuel-based alternatives.
Here are the global average levelized cost of electricity (LCOE) figures from 2024 per IRENA’s report:
- Onshore wind: $0.034 per kilowatt hour (kWh)
- Solar PV: $0.043/kWh
- Hydropower: $0.057/kWh
- Offshore wind: $0.082/kWh
Some markets saw even lower costs. For example, onshore wind in China came in at $0.029/kWh, and in Brazil, it was $0.030/kWh. Solar PV was also particularly cheap in China ($0.033/kWh) and India ($0.038/kWh).
While overall prices remained low, some renewable technologies experienced small cost increases in 2024:
- Solar PV: Up 0.6%
- Onshore wind: Up 3%
- Offshore wind: Up 4%
- Bioenergy: Up 13%
Other technologies saw cost declines, such as:
- Concentrated Solar Power (CSP): Down 46%
- Geothermal: Down 16%
- Hydropower: Down 2%
Despite a few short-term fluctuations, the long-term trend is clear: renewables are getting cheaper and more competitive every year.
Battery Storage Supercharges the Grid
One of the most important enablers of the renewable boom is battery storage. These systems allow energy from variable sources like solar and wind to be stored and used when needed. This helps balance the grid and supports a stable electricity supply even when the sun isn’t shining or the wind isn’t blowing.
According to IRENA, the cost of utility-scale battery storage has dropped 93% over the past decade. In 2010, it cost $2,571 per kilowatt-hour (kWh). In 2024, it fell to just $192/kWh.
This dramatic price drop is the result of improved materials, larger manufacturing scale, and more efficient production processes. Batteries are also increasingly paired with solar and wind systems in hybrid projects. These setups include on-site generation, storage, and sometimes digital monitoring tools, allowing for smarter and more efficient energy use.
As battery prices continue to fall and deployment increases, these systems will play a critical role in grid flexibility and renewable integration.
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Yet, Obstacles Stand in the Way
Despite the progress, the transition to renewable energy is not without challenges. IRENA points to several key barriers that could slow growth if not addressed:
- Geopolitical Tensions and Trade Barriers
- Rising tariffs on solar panels, wind turbines, and raw materials could disrupt global supply chains.
- Dependence on a few countries for manufacturing, especially China, adds risk.
- Financing Difficulties in Emerging Markets
- Capital costs are higher in developing countries.
- Limited access to affordable loans or public funding stalls projects.
- Slow Permitting and Grid Constraints
- Many countries face delays in approving renewable energy projects.
- Existing power grids are not always ready to handle large amounts of new renewable electricity.
- Policy Uncertainty
- Inconsistent or unclear policies on renewable targets, tax incentives, or feed-in tariffs make it hard for investors to commit long-term.
The agency stresses that urgent action is needed. Governments must streamline regulations, invest in grid upgrades, and expand financial support if they want to scale up clean power and meet their climate goals.
Fossil Fuel Costs Avoided: A Hidden Benefit
One powerful but often overlooked benefit of renewables is the economic value of avoided fossil fuel costs. In 2024, renewable energy helped the world avoid $467 billion in fossil fuel spending, according to IRENA estimates.
This means fewer oil and gas imports, lower exposure to global price spikes, and less economic instability. For many developing nations, the ability to generate power locally using the sun or wind is not just cheaper — it’s also more secure.
Avoiding fossil fuel use also reduces exposure to geopolitical risks, such as conflicts that disrupt fuel supply. That makes renewables not only a climate solution, but also a resilience strategy.
Looking Ahead: Accelerate or Fall Behind?
The IRENA report makes it clear: renewable energy is no longer a niche technology. It is a mainstream energy source that’s expanding fast and cutting costs. Still, the pace must double to meet global targets.
The cost trends are encouraging. The technology is ready. Investment is rising. But challenges remain, and time is short.
If governments and industry leaders can work together to remove barriers, increase financing, and support innovation, renewable energy could power most of the world’s electricity by 2030.
