Insecurity due to war in Ukraine turns to renewable energy sources
The International Energy Agency has released its latest annual report, which brings a wave of optimism about the path to a cleaner energy future. A surge in clean energies is unfolding, driven in large part by the energy security concerns triggered by the war in Ukraine. The forecast for renewable energy deployment over the next five years is higher than any projection from just a year ago.
Across the globe, the energy crunch is accelerating the uptake of renewables. Total capacity growth is expected to nearly double over the next five years. The IEA notes that coal is being displaced as the largest source of electricity generation, a shift that keeps the door open to keeping global warming within 1.5 degrees Celsius.
Rising concerns about energy security due to Russia’s invasion of Ukraine have pushed many countries to rely more on renewables such as solar and wind, reducing dependence on imported fossil fuels while energy prices remain volatile.
Renewables 2022, the IEA’s annual industry report, estimates global renewable energy capacity will grow by about 2,400 gigawatts between 2022 and 2027, which would be roughly equal to China’s current total power capacity today. This projection underscores the rapid pace of transition toward clean energy sources.
Projected growth is about 30 percent higher than the forecast a year earlier, highlighting how governments are accelerating their renewables ambitions. Over the next five years, clean energy is expected to account for more than 90 percent of new electricity generation worldwide, surpassing coal to become the largest source of electricity by early 2025, according to the IEA analysis.
Fatih Birol, the IEA Executive Director, stated that renewables were expanding rapidly even before the current energy crisis, but the crisis has intensified efforts to deploy renewables at an even faster pace. He added that this momentum offers a historic opportunity toward a cleaner and safer energy system and remains crucial for keeping the 1.5 degree target within reach.
Insecurity due to war in Ukraine turns to renewable energy sources
The war in Ukraine is shaping Europe’s approach to energy as governments and companies work quickly to replace Russian gas with alternative supplies. The deployment of renewable capacity in Europe from 2022 to 2027 is expected to double the previous five-year period, driven by concerns about energy security as well as climate goals.
Policy experts point to faster deployment possible if European Union members streamline procedures, shorten permit timelines, improve auction designs, and enhance the visibility of auction calendars. Strengthening incentives for solar roofs, wind, and solar photovoltaic projects could accelerate growth further.
Beyond Europe, growth in renewables for the next five years is being driven by major economies including China, the United States, and India, with policy reforms and proactive measures helping to tackle the energy crunch faster than anticipated.
China is projected to account for about half of the new global renewable energy capacity additions in 2022–2027, while the United States has benefited from the Inflation Reduction Act, providing long-term support for renewable expansion. These developments reflect a broader shift toward domestic capacity and resilience in energy systems.
Solar energy and photovoltaic rise
Large-scale solar and onshore wind have become the most affordable options for new electricity in many regions. According to the IEA, global solar capacity nearly triples during 2022–2027, surpassing coal to become the world’s largest source of energy capacity. Residential and commercial rooftop solar installations are expected to help households reduce energy bills as adoption accelerates.
Global wind capacity is also forecast to nearly double, with offshore projects contributing a significant portion of that growth. Wind and solar together are expected to provide more than 90 percent of the renewable energy capacity deployed over the next five years.
There is growing diversification in global PV supply chains, and new US and Indian policies are likely to boost solar investment substantially through 2027. While China remains the dominant player, its share of global production could ease from today’s about 90 percent to around 75 percent by 2027. Biofuels demand is expected to rise by about 22 percent in 2022–2027, with the United States, Canada, Brazil, Indonesia, and India accounting for most of the expansion, supported by comprehensive national policies.
However, addressing supply chain challenges and expanding grid networks will require continued policy support and market reforms to accommodate a larger share of renewable energy. The fastest-growing clean resources offer a real chance to advance toward net-zero emissions by 2050 and help limit warming to 1.5 degrees Celsius.
Reference report: IEA Renewables 2022
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Note: This summary reflects recent assessments of global energy trends, emphasizing the speed of renewable deployment and policy actions shaping the energy transition.