2025-02-25
Shaping the future of global energy: the role of renewable technologies
As the world accelerates its shift towards a sustainable future, renewable energy is emerging as a central force in global energy transformation. With technological breakthroughs and strong policy support, renewables are not only reshaping the energy landscape but also driving green, sustainable development. The future looks bright for renewable energy, with substantial growth expected over the next five years.
Technological innovation: the key driver of renewable energy growth
The rapid development of renewable energy has been propelled by significant technological innovations. In recent years, breakthroughs in photovoltaic (PV) technology, energy storage, and smart grid solutions have drastically improved energy efficiency, reduced costs, and paved the way for large-scale adoption.
One standout example is solar energy. The advent of perovskite solar cells has improved power generation efficiency and cost-effectiveness, enabling new applications such as wearable technology and solar windows. Floating wind turbines are another innovation expanding the possibilities for wind energy, now deployed further offshore where conventional turbines could not reach.
Key technological milestones include:
- Over the past decade, the levelized cost of electricity (LCOE) for both wind and solar energy has dropped by more than 60% and 80%, respectively, with significant contributions from China’s technological advancements.
- In 2023, China accounted for more than 50% of new renewable energy capacity worldwide, propelling the global share of non-fossil energy from 13.6% in 2014 to 18.5% in 2023.
- As of 2024, global renewable energy capacity stands at 4,250 GW, with projections indicating it will approach 10,000 GW by 2030.
- Emerging technologies such as Ocean Thermal Energy Conversion (OTEC) are also showing promise. By harnessing the temperature differences in ocean water, OTEC could provide renewable energy to coastal areas, further solidifying renewable energy’s role in the global energy mix.
A booming market with unmatched economic potential
As global energy demand continues to rise, renewable energy is not only meeting new demand but is also gradually replacing fossil fuels, proving its growing market competitiveness. The International Energy Agency (IEA) projects that renewable energy will dominate global energy growth in the coming years, particularly in wind and solar power.
Key market insights include:
- Investments in renewable energy projects now total nearly $2 trillion annually, nearly double the combined investments in new oil, gas, and coal supplies. This reflects the rising economic appeal and investment value of renewables.
- By 2030, solar energy is expected to account for 80% of the newly added clean energy capacity, with utility-scale solar expanding from 917.1 GW to 3,467.1 GW, and distributed solar growing from 694.4 GW to 2,353.5 GW.
- In China, renewable energy’s share of power generation is expected to continue growing rapidly as part of the country’s ambitious 14th Five-Year Plan.
- The improving efficiency of solar PV technology and the falling costs of renewable energy technologies make large-scale adoption increasingly viable. Additionally, the renewable energy sector is creating millions of jobs and driving economic growth. By 2025, renewables are expected to account for 40%-45% of global electricity supply, surpassing coal as the dominant source of power.
Renewable energy’s social and environmental impact
The benefits of renewable energy extend far beyond economic growth. The widespread adoption of renewables has significant social and environmental impacts, from improving air quality to reducing dependency on fossil fuels. It is also an essential part of the fight against climate change.
Recent data highlights the positive impacts of renewable energy:
- In 2024, global renewable energy use is expected to reduce carbon dioxide emissions by approximately 2 billion metric tons.
- In China alone, the renewable energy sector has created over 5 million jobs, showcasing its contribution to economic development.
- The adoption of renewables also enhances energy security by reducing reliance on fossil fuels and mitigating geopolitical risks.
- In everyday life, renewable energy is making a tangible difference. Many households are installing solar panels to meet their energy needs, with excess electricity being sold back to the grid. In remote areas, small-scale solar and wind installations are providing electricity to over 100 million people. Additionally, “positive-energy buildings” — structures that generate more power than they consume through integrated solar panels and wind turbines — are becoming more prevalent.
The future of renewable energy
With technological advancements, strong market performance, and significant social benefits, renewable energy is positioned to be the cornerstone of the global energy transition. The continued development of hydrogen fuel cell technology, for example, will accelerate the adoption of zero-emission vehicles.
Furthermore, the decentralization of energy production will encourage innovation and democratization of the energy sector.
By 2030, clean energy is expected to meet the world’s energy demands entirely, eliminating the reliance on fossil fuels. As IEA Executive Director Fatih Birol aptly states, “Renewable energy is the key to the global energy transition—not only addressing climate change but also driving economic and social progress.”
The future of renewable energy is incredibly promising. As technology advances and policy frameworks support its growth, renewables will not only reshape the global energy landscape but will also contribute to building a more sustainable, green future for generations to come.
