IRENA urges faster renewable electrification
The International Renewable Energy Agency (IRENA) has called for a major acceleration in renewable electrification and energy system reforms to keep the global energy transition aligned with a 1.5°C-compatible pathway.
IRENA said in its 2026 World Energy Transition Outlook (WETO) that global installed renewable power capacity must increase from 5.2TW today to around 38.2TW by 2050.
The agency added that electricity’s share of final energy consumption must rise to 35% by 2035 and over 50% by 2050, with solar and wind supplying more than 80% of electricity by mid-century.
The report warns that record renewable capacity additions in 2025 are being undermined by inadequate grid development, surging energy demand and energy efficiency improvements that remain significantly below the required rate.
It identifies electrification, energy efficiency, grids, storage and system flexibility as critical to accelerating the transition away from fossil fuels.
“The global energy transition is under stress. Record growth in renewables is not enough on its own: energy efficiency is falling short, grids are struggling to keep pace, and global energy demand continues to surge,” said IRENA director-general Francesco La Camera.
“We cannot deliver the transition by simply adding renewables to an unchanged energy system. We need reforms to build the infrastructure of a new energy system — one that is electrified, efficient, flexible and powered by renewables.”
The outlook also highlights the economic benefits of accelerating decarbonisation, projecting that under IRENA’s 1.5°C scenario the global economy could grow by an additional 1.1% annually compared with business as usual.
This would translate into cumulative economic gains of around $46 trillion by 2050, while renewable energy employment could increase more than fivefold from just over 16 million jobs today.
Greater electricity competitiveness in emerging markets could also deliver 15% lower end-user power prices by 2050.
However, achieving these benefits would require annual investment of around $10.3 trillion between 2026 and 2050, with spending concentrated on renewable generation, grids, flexibility and end-use electrification.
“The quality of the transition will matter as much as its speed,” said La Camera.
“Our analysis shows that accelerated decarbonisation can strengthen investment, productivity, employment and welfare.”
The report identifies seven priorities for action over the coming decade, including integrated energy and market planning, country-specific transition roadmaps, grid modernisation and stronger industrial and investment strategies.
It also calls for social and environmental policies to maximise the benefits of the transition, alongside deeper international cooperation.
IRENA emphasised that governments must manage the shift away from fossil fuels while safeguarding reliability, affordability and energy security, ensuring that clean energy deployment supports economic competitiveness and long-term prosperity.
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