 |
| Windmill Field - Renewable Energy Source. Image used courtesy of Pixabay. |
According to the International Energy Agency (IEA) Electricity Market Report 2023, “Despite an increase in the installed capacity of renewables, the share of renewable energy in the global installed capacity of energy generation was approximately one-fourth.”
Renewable energy is unquestionably the breakthrough for the energy sector, but the million-dollar question in everyone's mind is: when will it take the limelight? The Russia-Ukraine crisis has majorly affected the energy market with soaring prices of energy commodities. Regardless of such challenges, the year 2022 noticed a rise of 2%, and simultaneously global energy generated through coal has seen a growth of 1.5% as per the Energy Market Report 2023.
Overview of the Current State of Renewable Energy
The Russia-Ukraine crisis particularly has hit the European countries at a different level compared to other nations due to their dependency on Russian energy commodities, which has prompted the deployment of numerous policies and regulatory changes aimed at renewable market development.
As per IEA Renewable Energy Market Update, Outlook for 2023 and 2024, global renewables installed capacity has increased by 13% in 2022, among all the renewables, Solar PV witnessed a record with a rise of 35% in capacity compared to 2021. In 2022, the install capacity of global renewables stands at an impressive 340 GW.
 |
If we try to examine the breakdown of installed renewables capacity, two significant contributors stand out: solar PV and wind technology. The figures below demonstrate net solar PV and onshore wind electricity capacity established by China, European Nations, the United States, India, and Brazil. Interestingly, China is the leading contributor to renewable energy, especially through its utilization of solar PV and wind technology.
 |
| Figure 2. Net Solar PV electricity capacity additions by country or region, 2022-2024, IEA. License: CC BY 4.0 (Source: IEA) |
 |
| Figure 3. Net onshore wind electricity capacity additions by country or region, 2022-2024, IEA. License: CC BY 4.0 (Source: IEA) |
Renewable Energy's Growth Trajectory
The Paris Agreement's goal is "to avoid dangerous climate change by limiting global warming to well below 2°C and pursuing efforts to limit it to 1.5°C." The connection between the Paris Agreement's goal and renewable energy is that, by adopting the Paris Agreement, the countries are bound to minimize carbon emissions and other greenhouse gases, to tackle climate change and it can be achieved with certain strategies and implementation of renewable energy sources in power generation sector is one of the strategies.
According to International Renewable Energy Agency (IRENA) World Energy "Transitions Outlook 2023" Report, it is anticipated that the portion of renewables installed capacity to grow up to 68% by 2030 and 91% by 2050 as shown in the pie chart below, of the total global electricity generation.
 |
| Figure 4. Power generation needs to more than triple by 2050 in the 1.5°C Scenario, (Source: IRENA) |
If we try to break down the renewables installed capacity which is expected to grow up to 91% by 2050, solar PV is expected to lead the capacity followed by offshore wind power. Since to achieve the limit of 1.5°C scenario as shown in the bar graph below, the coal power generating plant has to be discontinued but there might be still power plants running on natural gas.
 |
| Figure 5. Global power generation mix and installed capacity by energy source: Planned Energy Scenario and 1.5°C Scenario in 2020, 2030, and 2050 (Source: IRENA) |
Conclusion
The Paris Agreement is the lawfully obligatory international climate change agreement, adopted in December 2015 with the goal of keeping global warming below 2°C and restricting it to 1.5°C. Since the electricity generation sector is dominated by conventional sources which are significantly damaging the ecosystem with harmful emissions, nations are taking action to fight the challenges by deploying various policies and implementing renewable energy power plants.
According to IRENA analysis, it is anticipated that renewable energy share to dominate by 2030 with a share of 68%, and by 2050 it is expected to grow up to 91% of the global electricity capacity. So to meet the Paris Agreement's goals, nations will be investing massive amounts of capital, resources, and time to meet this goal to make Earth a better place to live.