The agency indicated that the world was on track to triple its renewable power capacity by 2030, a commitment set at the recent COP28 climate conference.
The analysis covered the period from 2023 to 2028, projecting global renewable power capacity to reach 7,300 GW.
Despite this optimism, challenges in financing emerging economies loom large as IEA warned that the world needed to do more to meet the COP28 goal, noting that the lack of financing, particularly in emerging and developing economies, posed a significant challenge.
As such, the agency emphasised the urgent need for innovative solutions to bridge the funding gap and ensure sustained progress in the renewable energy sector.
The report underscored the potential for renewable energy to play a pivotal role in meeting future energy demands but highlighted the critical role of financial support in realising these ambitions.
IEA Executive Director, Fatih Birol, emphasised the importance of scaling up financing and deployment of renewables in these regions, highlighting the need for international cooperation.
“Onshore wind and solar PV are cheaper today than new fossil fuel plants almost everywhere and cheaper than existing fossil fuel plants in most countries. There are still some big hurdles to overcome, including the difficult global macroeconomic environment. For me, the most important challenge for the international community is rapidly scaling up financing and deployment of renewables in most emerging and developing economies, many of which are being left behind in the new energy economy. Success in meeting the tripling goal will hinge on this,” he said.
He highlighted that achieving the goal of tripling renewables by 2030 varies widely depending on the country, region, and technology, noting that the report outlined an accelerated scenario, where swift policy implementation results in renewable power capacity growing 21 per cent higher than the main forecast, which would propel the world closer to meeting the global commitment to tripling renewable capacity.
“In advanced and large emerging economies, this would mean addressing challenges such as policy uncertainty in a fragile economic environment, insufficient investment in grid infrastructure to accommodate greater shares of renewables, and cumbersome administrative barriers and permitting delays. In other emerging and developing economies, access to finance, strong governance and robust regulatory frameworks are essential to reduce risk and attract investment, including establishing new targets and policies in countries where they do not exist yet,” the report stated.
Meanwhile, National Coordinator, All Electricity Consumers Protection Forum, Adeola Samuel-Ilori, has urged the Nigerian government to spearhead innovations, focus on reducing the cost of equipment, particularly solar panels and other essential materials, to facilitate the diversification of power generation.
He emphasised that the limitations of other power generation systems are largely due to outdated equipment, hindering their efficiency.
Samuel-Ilori added that renewable energy could serve as a viable alternative or supplement to address the shortcomings of the primary power supply entities, such as generation companies and distribution companies, ensuring people don’t experience the consequences of inadequate service satisfaction.
“When the government introduces waivers or reduction on customer and excise duty paid on materials used to make solar and other renewable energy then it will be acceptable and accessible by the people. But the fear of the stakeholders why this was not so all along was the imaginary investors expected to flood the power sector market outside renewable energy. But doing that will help some villages and other hinterlands to benefit,” he said.
