The development of renewable energy sources depends on technological progress, investment conditions, energy policies and their competitiveness with conventional energy sources. According to IRENA, in 2024, around 91% of newly commissioned utility-scale renewable power capacity had a lower levelised cost of electricity than the cheapest newly installed fossil fuel-based alternative. Further expansion nevertheless requires investment in the infrastructure needed to integrate renewable energy into existing power systems.

Solar and wind power combined with battery energy storage can provide a more flexible and reliable electricity supply.

Continued investment in research, development and energy infrastructure will be essential for the further expansion of renewable energy. Public and private funding can support emerging technologies, improve the efficiency of existing systems and help overcome barriers associated with grid connections, energy storage and project development.

Renewable energy sources supplied approximately 34% of global electricity generation in 2025. According to the IEA’s Renewables 2025 forecast, their share could rise to around 43% by 2030. Hydropower remains an important source of renewable electricity and provides valuable flexibility for power systems, while solar and wind power account for most of the expected increase in renewable electricity generation. Further hydropower development is expected in countries with substantial untapped resources, including Brazil, China and India. In other regions, the modernisation of existing hydroelectric power plants can extend their operating lives and improve their efficiency and flexibility.

Wind power is expected to remain an important contributor to the growth of renewable electricity generation. Further development will include both onshore and offshore wind farms, with China continuing to play a major role in global capacity expansion. Larger turbines and improved technologies will support the further development of wind power in a wider range of locations.

Solar photovoltaic power has become one of the fastest-growing renewable electricity technologies. In 2025, it supplied more than 8% of global electricity generation, while its installed capacity reached approximately 2,800 GW. Further growth will be supported by improvements in photovoltaic technology, including higher conversion efficiencies and the development of new solar-cell materials.

Renewable energy is also becoming increasingly important in industrial heat production. According to the IEA’s Renewables 2025 forecast, the renewable share of global industrial heat consumption could rise from around 12% in 2024 to 16% by 2030. Biomass, geothermal energy and renewable electricity can contribute to this development, depending on the temperature requirements and operating conditions of individual industrial processes.

Efforts to reduce greenhouse-gas emissions are another important factor influencing the development of renewable energy. Replacing fossil fuels with low-emission energy technologies can help limit the environmental impact of energy production and support the development of more sustainable energy systems.