According to a new report from the International Renewable Energy Agency (IRENA), renewable energy sources will be crucial to meeting rising global electricity demand, but with up to 2.5 TW of solar, storage and wind projects already in the queue globally, increased investment in grid infrastructure will be crucial.
Electrification must account for 35% of global total final electricity consumption by 2035 to stay on a 1.5C-compliant path, according to a new report from the International Renewable Energy Agency (IRENA).
The agency’s latest report, “Moving away from fossil fuels: a roadmap based on renewables, electrification and grid improvement”, says electrification must lead the next phase of the energy transition.
A revised 1.5C scenario calls for a significant increase in the role of electricity in the global energy system, from around 23% now to the target of 35% by 2035, and then to above 50% by 2050, at which point electricity would be the dominant energy carrier in the global energy system.
IRENA’s report says that this rising demand for electricity will be largely met by renewable energy sources. It sets a target of 18.4 TW of globally installed renewable capacity by 2035, rising to 38.2 TW by 2050, to meet target electrification. According to a recent IRENA report, global renewable energy capacity stood at 5.14 TW at the end of 2025.
This growth trajectory would increase the share of renewables in electricity generation, from 30% in 2023 to 78% in 2035 and to 92% in 2050, the report said.
Image: IRENA
IRENA Director General Francesco La Camera said the agency’s revised roadmap shows that electrification with renewable energy sources serves multiple policy goals.
“It contributes to climate change mitigation, improves energy security by increasing independence from imported fossil fuels and strengthens economic competitiveness by creating new industrial value chains and innovation,” La Camera explains. “In addition, cost-competitive renewables support affordable electricity prices for households and industry.”
Network infrastructure and flexibility are highlighted as critical bottlenecks for achieving IRENA’s increased electrification targets.
According to the figures available in the report, there are approximately 2,500 GW of projects stuck in grid connection queues worldwide, the majority of which are solar, storage or wind energy. IRENA estimates the need for network investment at an average of $1.2 trillion per year until 2050, more than double the $0.5 trillion invested in 2025. To stay on the 1.5C path, IRENA says a total of $5.5 trillion in investments in electricity grids and energy flexibility is needed before 2030.
IRENA’s report warns that without proportionate network investment, electrification risks creating more curtailments, network congestion and higher costs. It calls for both the expansion of network infrastructure and the optimization of existing networks through methods such as network-building solutions and network-enhancing technologies to unlock untapped network capacity and reliability.
“Expanding and strengthening the grid is therefore an essential requirement and must keep pace with the growth of renewable energy sources,” the report said.
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