Core Insights - The IEA's 2025 Renewable Energy Report predicts a global renewable power capacity increase of 4,600 gigawatts (GW) from 2025 to 2030, equivalent to the combined capacity of China, the EU, and Japan, with solar PV accounting for nearly 80% of this growth [26][28][30] - The report indicates a slight downward revision of the growth forecast by 5% compared to last year, primarily due to policy changes in the US and China, with the US forecast revised down by nearly 50% [28][30][31] - Despite financial struggles among solar and wind manufacturers, there remains strong demand from developers, with one-fifth of large developers increasing their deployment targets for 2030 [32][33] Global Capacity Growth - Global renewable power capacity is expected to reach 2.6 times its 2022 level by 2030, but will fall short of the COP28 tripling pledge [31] - Solar PV is projected to dominate the growth, with annual additions expected to exceed 80% of total renewable capacity increases [27][62] - Wind power capacity is expected to nearly double to over 2,000 GW by 2030, despite facing supply chain issues and rising costs [27][28] Regional Developments - India is forecasted to become the second-largest growth market for renewables, with capacity expected to rise by 2.5 times by 2030 due to higher auction volumes and supportive policies [30] - The Middle East and North Africa region sees a 25% upward revision in forecasts, driven by rapid solar PV growth in Saudi Arabia [30] - The EU's growth forecast has been slightly revised upwards due to strong corporate power purchase agreement (PPA) activity, offsetting weaker offshore wind prospects [30] Financial Health and Supply Chain - Major solar PV and wind manufacturers are facing significant financial losses, with cumulative losses reaching nearly USD 5 billion for Chinese solar companies since 2024 [32] - Supply chain concentration remains a critical issue, with over 90% of key production segments for solar PV and wind turbine components concentrated in China [35] - The report highlights the need for increased investment in grid infrastructure and flexibility to accommodate the growing share of variable renewables in electricity supply [36] Renewable Energy in Transport and Heat - The share of renewables in the transport sector is expected to rise from 4% to 6% by 2030, with significant growth driven by electric vehicles [39] - In the heat sector, renewables are projected to account for 18% of global heat demand by 2030, up from 14% today, largely due to increased use of renewable electricity in industry and buildings [40]