Global Renewable Energy Growth in 2021: Surges in Solar and Wind

Renewable energy continued to grow steadily through 2021, based on the latest global data. In that year, renewables supplied a dominant share of new energy installations, reaching a level never before seen. Yet, the pace remains insufficient to fully curb climate warming.

New insights from the International Renewable Energy Agency (IRENA) show that renewable energy kept expanding despite ongoing global uncertainties.

By the end of 2021, global renewable generation capacity stood at 3,064 gigawatts, marking a 9.1 percent increase in renewable capacity overall.

Percentages of total renewable energy installed each year

Hydropower continues to account for the largest portion of the world’s renewable generation capacity, totaling about 1,230 GW, while solar and wind power led the growth in new capacity in 2021 according to IRENA’s latest figures.

the sun stands out

In 2021, solar and wind contributed together to roughly 88 percent of all new renewable capacity. Solar capacity rose by 19 percent, with wind following closely behind at a 13 percent increase.

IRENA notes that this steady progress demonstrates the resilience of renewable energy and suggests broad opportunities for nations to realize multiple socio-economic benefits from clean energy deployment.

Nevertheless, the Global Energy Transitions Outlook indicates that the energy shift is not rapid or widespread enough to avert the worst impacts of climate change, as stated by the agency’s director general, Francesco La Camera.

Growth of renewable energy capacity

The current energy crisis reinforces the reality that fossil fuels cannot meet future demand. Financial resources directed toward fossil-power plants have limited returns and pose risks to national security and planetary health. Renewable energy should become the global norm, and political will must accelerate a path aligned with 1.5°C targets.

higher growth

For climate goals to be achieved, renewable energies must outpace rising energy demand. While electricity generation from renewables has risen, several countries have yet to reach that critical tipping point.

Asia accounted for about 60 percent of new capacity in 2021, bringing the regional total to roughly 1.46 terawatts. China led the expansion, adding about 121 GW to Asia’s new capacity. Europe and North America followed, with the United States contributing 39 GW and North America 38 GW respectively.

Capacity grew by about 3.9 percent in Africa and 3.3 percent in Central America and the Caribbean. Although growth was steady, the pace there lagged behind the global average, signaling a need for stronger international cooperation to improve electricity markets and mobilize substantial investments in these regions.

solar panels

When broken down by technology, several highlights emerged:

• Hydroelectric power: Hydropower continued its steady expansion as major projects progressed in 2021.
• Wind power: Wind capacity grew in 2021, though at a slower pace than the year before.
• Solar energy: With continued capacity additions, global solar capacity surpassed wind capacity in total installed capacity.
• Bioenergy: Net capacity grew by about 10.3 GW in 2021 compared with 9.1 GW in 2020.
• Geothermal energy: Geothermal capacity rose strongly, adding about 1.6 GW in 2021.
• Off-grid electricity: Off-grid capacity increased by 466 MW to reach 11.2 GW in 2021.

Reference article: IRENA’s 2022 renewable capacity statistics document provides the detailed breakdown for 2021.