Clean Energy

The future of clean electrical power is set to be shaped by a rapid surge in solar and wind energy, alongside substantial growth in other renewable sources such as geothermal and hydropower. As these clean energy technologies advance, so too will energy storage solutions, designed to address the inherent variability of renewable power generation. By mid-century, the goal is to establish a power grid primarily fueled by clean energy sources.

Trends Driving the Renewable Energy Boom

Expansion of Solar and Wind Capacity

Both solar and wind power are expected to experience explosive growth, becoming the dominant sources of clean electricity worldwide.

Grid Integration of Renewables

Efforts to seamlessly integrate renewable energy into the grid will be essential to ensure a reliable, stable supply, with advanced grid infrastructure playing a pivotal role in managing the fluctuating output of wind and solar power.

Advancements in Energy Storage Solutions

To tackle the intermittency of renewable generation, innovative energy storage technologies, such as advanced batteries and other storage methods, will be crucial for ensuring a consistent supply of power even when the sun isn't shining or the wind isn't blowing.

Smart Grid Technologies

Smart grids will enable real-time monitoring, improved efficiency, and enhanced reliability, facilitating the integration of a diverse range of renewable energy sources and allowing for more flexible, dynamic energy distribution.

Emerging Technologies

Cutting-edge developments, such as perovskite solar cells—known for their potential to reduce costs and increase efficiency—and offshore wind farms—capitalizing on stronger and more consistent winds at sea—will play a vital role in driving the next wave of renewable energy breakthroughs.

All of these advancements will focus on achieving cost-effective, reliable, and scalable clean electricity generation, creating a future where nearly all of the world's electrical power comes from renewable sources. This transformation will not only reduce emissions but also provide a sustainable, resilient energy infrastructure for generations to come.

Beyond Sustainability: The Economic & Social Impact of Clean Energy

Environmental Benefits:

Renewable energy sources are a key driver in combating climate change, producing little to no greenhouse gases that contribute to global warming. Beyond reducing carbon emissions, renewable energy also helps decrease air and water pollution, improving the health of ecosystems and the well-being of communities.

Energy Security:

By harnessing domestic renewable energy sources, countries can reduce their dependence on foreign energy imports and fossil fuels, enhancing national energy security and ensuring more stable, self-sufficient energy systems.

Economic Benefits:

The renewable energy sector is a significant job creator, with opportunities across manufacturing, installation, and maintenance. As the cost of renewable technologies continues to fall, clean energy also offers the potential to lower energy prices, benefiting both consumers and industries.

Social Benefits:

Renewable energy can provide affordable, reliable power to remote and underserved communities, helping bridge the energy access gap. This enables economic development, improves living conditions, and empowers communities that may have previously lacked stable electricity.

Reliability:

Renewables, when integrated into the grid, can enhance the reliability and resilience of the power system. Distributed renewable generation sources, like solar panels and wind turbines, can help decentralize energy production, making the grid less vulnerable to outages and disruptions.

Water Conservation:

Unlike conventional power plants, which often require large amounts of water for cooling, wind and solar energy systems use minimal water to operate. This makes them a more sustainable choice, especially in regions where water resources are scarce or under stress.

Fuel Supply:

Renewables, when integrated into the grid, can enhance the reliability and resilience of the power system. Distributed renewable generation sources, like solar panels and wind turbines, can help decentralize energy production, making the grid less vulnerable to outages and disruptions.

Clean Energy Market Projections: 2025 to 2034

The global renewable energy market is poised for rapid growth, with the market size projected to increase from USD 1.74 billion in 2025 to USD 7.28 billion by 2034, representing a robust compound annual growth rate (CAGR) of 17.23% from 2025 to 2034.

As IEA Executive Director Fatih Birol aptly stated, "Renewables are advancing faster than national governments can set targets, driven not only by efforts to reduce emissions and enhance energy security but increasingly because renewables today are the most cost-effective option for building new power plants worldwide." Birol further emphasized that renewable energy, particularly solar, is set to transform global electricity systems over this decade. By 2030, the world is expected to add over 5,500 gigawatts of renewable power capacity—equivalent to the combined current power capacity of China, the European Union, India, and the United States. By that time, renewables are forecast to meet half of global electricity demand.

The share of wind and solar PV in global electricity generation is predicted to double to 30% by the end of the decade. However, the report stresses that governments must take urgent action to integrate these variable renewable sources securely into power systems.

Can the World Achieve Net-Zero Emissions?

The window for achieving net-zero emissions by 2050 is narrowing, but decisive action now can still put the world on the right track. Failure to act swiftly could jeopardize even the more modest 1.75°C global warming target. While progress has been made, the energy transition must accelerate, as clean technology deployment and capital investment are at record levels. Although emissions remain high despite this momentum, experts agree that achieving carbon neutrality by mid-century is a difficult but achievable goal.

The coming decade is critical. To align with a net-zero trajectory, emissions and fossil-fuel use must peak immediately across the global energy system, spanning power, transport, industry, and buildings. Clean power generation is expected to drive the majority of emissions cuts needed by 2030, creating more time to address harder-to-abate sectors like steelmaking and aviation, where low-carbon solutions have not yet scaled cost-effectively.

This transition demands an unprecedented level of investment. For every dollar invested in fossil fuels, at least $3 must be directed toward low-carbon energy to stay on track. By 2050, the global energy transition could cost around $215 trillion—19% more than a less ambitious transition that misses the Paris Agreement's climate goals and allows global warming to reach 2.6°C.

Regardless of the path toward net-zero emissions, one thing is clear: the era of fossil fuels is coming to an end. Even without additional policy drivers, the economic forces alone could drive renewables to account for 50% of global electricity generation by the end of this decade. The future of energy is renewable, and its growth is unstoppable.