1. Global Renewable Energy Overview

1.1 Market Size and Growth

At the end of 2024, global renewable power capacity amounted to 4,448 GW, representing 46% of total global installed power capacity. Solar energy accounted for the largest share with 1,865 GW, followed by renewable hydropower at 1,283 GW and wind energy at 1,133 GW. Other renewable sources included 151 GW of bioenergy and 15 GW of geothermal power.

The year 2024 witnessed the largest increase in renewable energy capacity to date, with 585 GW of new capacity added globally. This represented a 15% growth rate and accounted for 92.5% of all power capacity additions worldwide. Building on this momentum, 2025 is projected to see approximately 793 GW of new renewable capacity additions.

The global pipeline of planned wind and utility-scale solar projects reached nearly 5 TW in 2025, growing by 11% from 4.4 TW in 2024 to 4.9 TW. This marks significant progress toward achieving global targets to triple renewable energy capacity by 2030.

1.2 Investment Trends

Renewable energy investments set another record in the first half of 2025, rising 10% year-over-year to reach $386 billion. This growth came despite significant policy uncertainty, with 87 new U.S. trade and tariff policies announced in 2025 creating unpredictability for companies and investors with exposure to cleantech supply chains.

Notable shifts in capital allocation include TotalEnergies and RWE reducing U.S. activity while expanding in the North Sea, and Canadian pension fund CDPQ rebalancing investments toward Europe from the United States. Small-scale solar emerged as a surprise winner in H1 2025 investments, while asset finance for utility-scale solar and onshore wind declined 13%.

About one-third of global energy transition investment in 2024 was directed toward renewable energy technologies, pushing total renewable energy investment to $807 billion. However, year-on-year growth slowed significantly, with annual investments increasing by 7.3% in 2024 compared to 32% the previous year.

2. Solar Energy Sector

2.1 Capacity Growth and Projections

Solar photovoltaic technology has emerged as the dominant force reshaping the global power system. In 2025, solar is expected to account for nearly 80% of total global renewable electricity capacity expansion, maintaining its dominant share from 2024.

The pace of solar PV deployment has been unprecedented. While it took nearly 70 years—from the first commercialization of solar cells in 1954—to reach the first 1,000 GW (1 TW) of capacity, the second TW was added in just two years. With 449 GW installed in 2023 and 597 GW in 2024, global cumulative installed solar PV capacity reached 2.2 TW by the end of 2024.

For 2025, the global solar PV market is expected to grow by 10%, reaching 655 GW under the medium scenario. This follows extraordinary 85% growth in 2023 and more moderate 33% growth in 2024. Under optimistic conditions, the high scenario forecasts a 30% surge to 774 GW, while the low scenario suggests an 8% decline to 548 GW if market conditions worsen.

2.2 Regional Market Dynamics

The Asia-Pacific region remains the undisputed leader in solar deployment, accounting for 70% of global capacity additions with 37% annual growth. China alone added 277 GW of solar capacity in 2024, achieving its 2030 targets six years early. China's solar market grew by 30% to 329 GW in 2024, representing a 55% global market share—more than the combined total of the other top 10 markets.

The Americas increased by 40% to capture a 14% market share, with the United States adding 27 GW of utility-scale solar capacity in 2025. Europe saw growth of 15% to 82.1 GW, also holding a 14% market share. Conversely, the Middle East and Africa was the only region to experience year-on-year decline in 2024, decreasing 2% to 14.5 GW.

2.3 Technology and Cost Trends

Low module costs, relatively efficient permitting processes, and broad social acceptance continue to drive acceleration in solar PV adoption. While utility-scale solar PV additions remain stable in 2025, expansion is expected for distributed solar PV applications, including residential and commercial installations.

The IEA has revised its solar PV forecast downward by 5% for 2025-2030 compared to last year, reflecting policy, regulatory, and market changes. Solar PV accounts for over 70% of the absolute reduction in forecast capacity, mainly from utility-scale projects. However, distributed solar PV continues to show strong growth potential.

3. Wind Energy Sector

3.1 Onshore Wind Developments

Onshore wind is experiencing stable growth, with an average of 151 GW per annum expected for 2025-2030, representing a compound annual growth rate (CAGR) of 4.4%. Compared to 2019-2024, cumulative onshore wind capacity additions are expected to increase 45% over 2025-2030, reaching 732 GW.

Despite recent challenges concerning supply chain bottlenecks, inflation, and long permitting and grid connection wait times, strong onshore wind expansion is expected as policies in both advanced and developing countries have partly addressed these barriers. Annual additions are expected to rise in Africa, the Middle East, ASEAN countries, Latin America, and Eurasia—in addition to Europe and India.

Germany awarded nearly 11 GW of new onshore wind capacity in tenders in 2025—an all-time high representing a remarkable 70% increase year-on-year. This surge results mainly from permitting condition improvements that addressed years of undersubscribed auctions.

3.2 Offshore Wind Expansion

Offshore wind capacity expansion is expected to reach 140 GW over the 2025-2030 forecast period, more than doubling the growth of the previous five-year period. The annual offshore wind market is projected to expand from 9.2 GW in 2024 to over 37 GW by 2030.

By the end of 2025, global offshore wind capacity in operation reached 84.5 GW, with more than 50% installed in China (42.31 GW). Looking ahead, cumulative capacity is forecast to grow significantly, reaching 396 GW by 2034, with Europe accounting for 45% of this capacity.

China accounts for almost 50% of offshore wind growth, with the annual market expected to approach 14.6 GW by 2030 in Europe. However, policy changes in the United States, macroeconomic pressures, and supply chain challenges have raised costs and undermined project bankability in several European markets and Japan, resulting in undersubscribed auctions and project cancellations.

As a result, the IEA has revised the global offshore wind capacity forecast 27% downward from last year. Despite this revision, the medium-term outlook remains optimistic, with a compound average annual growth rate of 28% until 2029 and 15% up to 2034.

3.3 Challenges and Opportunities

The wind industry faces several headwinds in 2025. Year-on-year growth in the wind and utility-scale solar pipeline has slowed from 22% in 2024 to 11% in 2025. This trend is more pronounced for wind projects, with a 13% drop from 2024 compared to a 7% drop for solar projects.

Wind developers experienced political barriers and a streak of failed wind power auctions in 2025. The decline in planned wind development could have an outsized impact on future power generation, given wind's higher capacity factor over solar.

By the end of 2025, a record 33.3 GW of offshore wind capacity was under construction globally, highlighting the scale of projects progressing through development and providing a strong foundation for accelerated deployment in the coming years.

4. Conclusion and Outlook

The renewable energy sector has reached a historic inflection point in 2025. Solar and wind technologies are no longer merely complementary to fossil fuel generation—they are outpacing global electricity demand growth and fundamentally reshaping the energy landscape.

Key developments shaping the outlook include:

• Demand Supremacy: Solar and wind growth now meets all new electricity demand, with fossil fuel power generation forecast to show no growth in 2025 for the first time since the COVID-19 pandemic.
• Solar Dominance: Solar PV continues to lead capacity additions, accounting for nearly 80% of renewable expansion. The technology's unmatched cost competitiveness and versatility position it as the primary driver of clean energy growth.
• Wind Resilience: Despite policy headwinds and auction challenges, wind energy maintains strong growth trajectories, particularly in offshore markets where capacity is expected to quadruple by 2034.
• Investment Momentum: Record investment levels of $386 billion in H1 2025 demonstrate continued confidence in the sector, even as capital reallocation responds to shifting policy landscapes.
• Regional Shifts: While China maintains dominance with over 50% of global solar and wind capacity, emerging markets are showing accelerated growth potential as costs decline and policy frameworks mature.

The path to tripling global renewable capacity by 2030 remains achievable but requires sustained policy support, streamlined permitting processes, and continued supply chain development. The technologies are ready—the question is whether policy and investment frameworks can match their pace.

As the data clearly demonstrates, the energy transition has moved from aspiration to reality. The year 2025 marks the beginning of a new era where clean power is not just an alternative but the primary driver of global electricity growth.