The International Energy Agency (IEA) has foreseen a continuous increase in global renewable energy capacity, projecting it to reach 7,300 gigawatts in the next five years. The agency has indicated that the world is on a trajectory to triple its renewable power capacity by 2030, aligning with the commitment made at the recent COP28 climate conference. The analysis spans the period from 2023 to 2028, with the IEA emphasizing the need for more effort to meet the COP28 goal, particularly highlighting challenges in financing emerging economies.
Despite the optimistic outlook, the IEA warns of significant hurdles in financing, especially in emerging and developing economies, which could impede progress. The agency underscores the urgency for innovative solutions to bridge the funding gap and ensure sustained advancements in the renewable energy sector. The report highlights the potential of renewable energy to play a crucial role in meeting future energy demands but underscores the critical role of financial support in realizing these ambitions.
IEA Executive Director, Fatih Birol, stresses the importance of scaling up financing and deployment of renewables, particularly in emerging and developing economies, emphasizing the need for international cooperation. He notes that onshore wind and solar PV are cost-competitive with fossil fuel plants, but challenges such as a challenging global economic environment must be addressed. Birol highlights the need for swift policy implementation, especially in emerging economies, to achieve the goal of tripling renewables by 2030.
The report outlines an accelerated scenario, where rapid policy implementation results in renewable power capacity growing 21% higher than the main forecast, bringing the world closer to meeting the global commitment to tripling renewable capacity. Challenges in various countries and regions are identified, including policy uncertainty, insufficient investment in grid infrastructure, administrative barriers, and permitting delays.
Meanwhile, the National Coordinator of the All Electricity Consumers Protection Forum, Adeola Samuel-Ilori, urges the Nigerian government to lead innovations and focus on reducing the cost of essential equipment, such as solar panels, to facilitate power generation diversification. He emphasizes that outdated equipment hinders the efficiency of other power generation systems, and renewable energy could serve as a viable alternative or supplement. Samuel-Ilori suggests that government incentives, such as waivers or reductions on duties, would make renewable energy more accessible, especially in rural areas.