Giorgia Burzachechi Solar Energy grows 30% in 2024. In a world in the midst of electrification, where energy consumption is increasing, renewables will cover 90% of the growth. However, the energy transition is hampered by geopolitical tensions and inadequate policies, putting climate goals at risk.
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Solar energy to grow by 30% in 2024, says IEA
In a rapidly electrifying and increasing energy-consuming world, renewables are anticipated to provide 90% of this growth.
Global electricity consumption will grow by some 4% annually to 2027, equivalent to the annual consumption of Japan. The growth in demand is driven by industrialization, air conditioning growth, transport electrification, and the explosive growth of data centers. Developing economies, particularly China, will account for 85% of this growth, as the country’s electricity consumption is growing at a higher rate than its GDP, driven by the production of solar panels, batteries, and electric vehicles.
These are the findings of Electricity 2025, the newest International Energy Agency (IEA) market analysis report.
Solar power grew by 30% in 2024
At the same time, global photovoltaic solar power production rose by 30% in 2024—the largest increase since 2017—logging a record single-year increase of 475 terawatt-hours (TWh). More than half of the increase came from China. From 2025 through 2027, global solar power generation will rise by some 1,800 TWh. Solar power will thus account for nearly half of projected growth in world electricity demand between these years.
This growth in solar energy will be complemented by steady growth in wind power, which is expected to supply around one-third of the extra electricity needs worldwide in the next few years.
Overall, electricity generation from renewable energy is projected to increase at a 10% average annual rate through 2027, adding some 3,400 TWh worldwide.
Renewables on the rise
Global electricity generation through renewables rose 10% from one year to another in 2024, twice the level of 5% that it reached in 2023. Hydropower, which decreased by about 2% during 2023 due to all-time record droughts across large areas of the globe—mainly China—posted a solid recovery in 2024 at 4% higher. It was spurred on by increased rainfall levels both within China and the continent of Europe.
World Energy Outlook 2024
In October, the IEA published its World Energy Outlook 2024, a comprehensive survey of the international situation on energy. While the report registered rapid growth in renewables, it recorded a discrepancy between policies and climate targets.
Policies currently in place—increased by political uncertainty, for instance, by the Trump victory and the U.S. decision to withdraw from the Paris Accord—would bring a global warming of 4.3°F (2.4°C) by 2100.
The transition to net-zero emissions remains stymied by geopolitical conflict, industrial planning, and uncertainty over future government policy.
More international backing is needed for the world’s poorest countries, where tens of millions of people still lack access to electricity and clean cooking fuels.
