86% renewables share of new capacity globally
“By accelerating the shift towards renewables, countries are reducing their structural exposure to fossil fuel volatility and limiting the economic and social impacts of future disruptions”
Renewables now represent the major- ity of all new power capacity additions. In 2025 alone, 692 gigawatts were added, marking the highest annual increase on record, with renewables accounting for almost 86% of all new capacity globally. With 91% of newly commissioned renew- able capacity as of 2024 delivering power at a lower cost than the cheapest fossil fuel alternative – well before the current crisis – the direction of travel is clear. Indeed, the competitiveness of tomorrow’s economies will be large- ly determined by their ability to move electrons and molecules at the lowest possible cost, and to deliver clean, safe and affordable energy services. As IRENA’s policy advisory, From Energy Crisis to Energy Security, sets out, short- term actions in response to the current crisis in Iran must be anchored in that longer-term vision. Fast movers will gain lasting resilience, productivity and com- petitiveness advantages over those who hesitate. FROM VULNERABILITY TO VIABILITY Countries that have invested sub- stantially in solar, wind, batteries and electrification are weathering the pres- ent disruption with measurably less economic damage. In Spain, renewables have reduced the role of natural gas in setting power prices to just 15% of the time, and in Pakistan, the rapid deploy- ment of decentralised solar and battery capacity has cushioned both consum- ers and the broader energy system from the current shock. By accelerating the shift towards renewables, countries are reducing their structural exposure to fossil fuel volatility and limiting the economic and social impacts of future disruptions. However, progress remains concen- trated in a small number of countries, and markets alone will not close the remaining gap equitably. Persistent bar- riers, including financing gaps, grid constraints and limited institutional
capacity, continue to hinder deployment across the developing world and in many advanced economies alike. This is not a failure of renewable tech- nologies. Rather, for most developing countries across Africa, Southeast Asia and Latin America, the barriers to the energy transition are systemic. Markets are designed based on fossil fuels, grids are neither interconnected nor flexible enough to absorb high shares of solar and wind, and current levels of institu- tional capacity are insufficient to plan, implement and operate the energy sys- tems of the future. TIME FOR DECISIVE ACTION In today’s turbulent times, when trust in multilateralism is being tested, the G7 can send a powerful signal. As lead- ers gather in Évian, G7 members have a clear opportunity and, given the con- centration of global capital in advanced economies, a unique responsibility to act. This requires setting a more stra- tegic direction for multilateral and bilateral financial institutions and a new vision for development, one that places building the infrastructure for the new energy system at its core. IRENA is committed to support- ing that signal through action, working closely with its member states and with Australia and Türkiye’s presidencies of the 31st Conference of the Parties to the United Nations Framework Conven- tion on Climate Change to ensure that renewable deployment and electrifica- tion scale up everywhere. The current crisis has made the case for renewables with a clarity that no report could replicate. The question now is whether that clarity will translate into action at Évian. The choices made by G7 leaders will determine not only how the current energy crisis is addressed and recovered from, but also whether structural expo- sure to such disruptions is reduced in the years ahead.
// FRANCESCO LA CAMERA Francesco La Camera assumed the role of director-general of IRENA in 2019. He formerly served as director-general of sustainable development in Italy’s Ministry of Environment, Land and Sea. As the national coordinator for the circular economy, he led the Italian del- egation at several Conferences of the Parties to the United Nations Framework Convention on Climate Change. He served as co-chair of the Africa Centre for Climate and Sustainable Devel- opment and co-chaired the Financial Platform for Climate and Sustainable Development.
X-TWITTER @flacamera irena.org
97 globalgovernancemedia.org
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