Renewable energy growth slows due to policy changes: Report

PARIS - Growth in renewable energy, a key part of efforts to limit dangerous climate change, is slowing down due to policy changes in the US and China, and will fall short of a key goal, the International Energy Agency (IEA) said on Oct 7.

Only two years ago, the global community set the goal of tripling renewable energy output by 2030 to limit the rise in global temperatures, but the IEA said it will “fall short” of achieving that target.

In 2024, the Paris-based agency, which advises nations on energy,

forecast that the world would come close

to that target with the addition of 5,500 gigawatts of renewable power.

The IEA now sees only a 4,600 gigawatt gain, or 2.6 times the 2022 level, due to “policy, regulatory and market changes since October 2024”, it said in its latest report.

It revised down its forecast for the US by almost 50 per cent due to the early phase-out by the administration of

tax credits for renewables

and tighter controls over projects.

China’s shift from fixed tariffs for renewable energy producers to auctions has shaken up the profitability of projects and lowered growth expectations, it said.

Nevertheless, it said China still accounts for

most of the growth in renewable energy

and that the country is on track to attain its 2035 wind and solar power target five years ahead of schedule.

Energy security

While growth in China and the US may be slowing, the IEA said there was a more positive outlook elsewhere.

It said India “is on track to meet its 2030 target and become the second-largest growth market for renewables, with capacity set to rise by 2.5 times in five years”.

It also raised its forecasts for the Middle East and North Africa by 25 per cent. In Europe, the forecasts for Germany, Italy, Poland and Spain were also revised higher.

Solar panels accounted for around 80 per cent of the global growth in renewable energy over the past five years, the IEA estimated, following by wind, water, biomass and geothermal power.

The outlook for offshore wind power was revised lower due to policy changes in key countries, it said, particularly the US, which has sought to halt projects already under construction.

The IEA noted that renewables were helping countries meet their goals for greater financial and energy security.

“The deployment of renewables has already reduced fuel import needs significantly in many countries, enhancing energy diversification and security,” it said.

It added that countries need to increase the flexibility of electricity networks to cope with the intermittent nature of renewable power, which is expected to account for 30 per cent of output by 2030, or double the current share. AFP