RENEWABLE energy capacity around the world is growing “at a record pace” as countries prioritize secure and sustainable electricity and fuel supplies in their policy agendas, according to a new report by the International Energy Agency (IEA).

In its Renewables 2026 report released last week, the intergovernmental body forecast that the world’s clean electricity output will grow by almost 4,800GW over the next five years, to provide almost half of all global electricity generation by 2031. [1]

At present, renewables provide consumers with one third of the world’s electricity.

The IEA’s annual report on renewable energy evaluates expected developments in the sector based on recent policy and market developments, while also exploring its key challenges and opportunities.

This year’s report revealed: “Renewables, already expanding at a record pace before the current energy crisis, are set to see strong growth across a wider range of countries around the world in the coming years.”

The report’s projected growth in renewable energy capacity represents a 57 percent larger increase than was experienced in the last six years. The expansion is being driven by a need for national energy security, according to the IEA’s Executive Director Fatih Birol. [2]

Oil and gas shortages, spikes in fuel prices, energy security concerns and supportive policies have generated the growth surge projected by the IEA for the renewable energy sector.

“Previously, environmental concerns were the policy priority behind the growth of renewables, whose falling costs have made them a competitive option in many markets,” Birol said. “But today, it’s mainly energy security that is driving renewables’ expansion.” [2]

The IEA report also stated that growth in emerging and developing economies outside China is set to match that in advanced economies, for the first time. [1]

Emerging and developing economies outside of China expanded at half the rate of advanced economies between 2020 and 2025. However, the IEA’s report has revealed that the amount of renewable capacity to be added by countries in Southeast Asia, the Middle East, North Africa and sub-Saharan Africa is forecast to almost triple [ah3] [JS4] compared to that six-year period. [1]

IEA Executive Director Fatih Birol said: “The new chapter of the renewables growth story is a truly global one as their deployment spreads well beyond major markets into every corner of the world.

“This is making them a key pillar of the global power sector. Today, they account for a third of global electricity generation; in the next five years, they will be getting closer to half of it.” [2]

The annual report forecasted that renewable energy used for transportation will rise more than 60 percent by 2031. Renewable electricity used by electric vehicles is expected to account for around 45 percent of the increase. [1]

It also found that liquid biofuels will make the second-largest contribution to renewable energy for transportation. This projection came after several countries raised blending mandates, which set minimum proportions of biofuels to be blended into gasoline or diesel sold at the pump, to counter fuel shortages and high prices. [1]

“Our forecast for biofuels is revised up by 40 percent compared with last year’s report”, the ‘Renewables 2026’ report stated.

Over all, the growth of biofuels and other renewables since 2010 has displaced 2.4 million barrels of oil equivalent per day - a figure “comparable to Canada’s total oil demand,” it said. [1]

Beyond electricity generation and transportation, the IEA also identified renewable heating as a rapidly developing energy sector.

Modern bioenergy remains the largest source of renewable heat, with further growth expected in industrial applications - highlighting the broader role biomass fuels can play in diversifying energy supplies and reducing dependence on fossil fuels.

China will remain the largest contributor to the global increase in renewable energy, providing a little over half of all additional capacity.

However, India is emerging as the world’s second-largest growth market after the IEA determined that the country’s total renewable capacity is set to more than double by 2031. [1]

The renewables growth trend was welcomed by Power Wood Energy’s Chairman David Peters.

He said: “The effects of higher fuel and electricity prices, and availability challenges caused by global conflicts, have driven countries to seek more secure and sustainable energy supplies.

“Governments have placed increased value on the reliability and security of renewable energy sources, in light of supply disruptions and price volatility.

“Their transition towards more stable energy capacities supported by renewable sources is being undertaken to protect consumers against shortages and price rises.

“However, it has the additional benefit of protecting them against the impacts of climate change.”

The International Energy Agency’s full Renewables 2026 report can be read through this link: https://www.iea.org/reports/renewables-2026 

[1] International Energy Agency (IEA). (2026, November 6). Renewables 2026. IEA, Paris. https://www.iea.org/reports/renewables-2026 

[2] International Energy Agency (IEA). (2026, November 6). Energy security concerns spur faster renewables growth across a widening constellation of countries. IEA, Paris. https://www.iea.org/news/energy-security-concerns-spur-faster-renewables-growth-across-a-widening-constellation-of-countries