The Renewables 2025 report by the International Energy Agency (IEA) provides the latest outlook for the global renewable energy sector, incorporating recent policy measures, market trends, and emerging challenges. It highlights that global renewable power capacity is projected to double by 2030, with an addition of about 4,600 MW equivalent to the combined power generation capacity of China, the European Union and Japan.
Solar photovoltaic is expected to drive nearly 80 per cent of this growth, followed by wind, hydropower, bioenergy and geothermal sources. In more than 80 per cent of countries, renewable capacity is anticipated to expand at a faster pace during 2025-30 compared to the previous five-year period. However, the report also notes mounting challenges, including grid integration constraints, supply chain bottlenecks and financing risks.
The outlook has strengthened for India, Europe and most emerging economies compared to last year’s projections. In India, the renewable energy expansion is being supported by higher auction volumes, new policy impetus for rooftop solar, and faster project approvals for hydropower. The country remains on track to meet its 2030 target and is poised to become the world’s second-largest growth market for renewables, with capacity expected to increase 2.5 times over the next five years.