Global renewable energy capacity must multiply sevenfold by 2050 to keep global warming within 1.5°C, according to a new report from the International Renewable Energy Agency.
The global energy transition requires unprecedented acceleration to meet climate preservation targets. Installed capacity of clean energy sources must jump from the current 5.2 Terawatts (TW) to 38.2 TW by the middle of this century.
To reach this milestone and limit the planet’s temperature rise to 1.5°C, as established in the Paris Agreement, solar and wind power will need to provide more than 80% of all global electricity by 2050.
These data are part of the World Energy Transitions Outlook 2026 study, prepared by the International Renewable Energy Agency (IRENA). The report emphasizes that simply building new plants will not be enough without deep structural reforms.
Infrastructure and power grid challenges
The study warns that the expansion of renewable generation must go hand in hand with the modernization of the electrical system. It is urgent to expand grid capacity, invest in storage, and ensure greater operational flexibility to absorb new demand.
According to IRENA, electricity should account for 35% of final energy consumption by 2035, surpassing the 50% mark by mid-century. However, investments in transmission and distribution continue to lag behind the necessary pace.
Slow progress in grid upgrades and insufficient gains in energy efficiency risk becoming critical bottlenecks, hindering the advancement of sustainable sources in the global market.
IRENA Director-General Francesco La Camera highlighted:
Record growth in renewables is not enough on its own: energy efficiency is falling short, grids are struggling to keep up, and global energy demand continues to rise.
Trillion-dollar investments and socioeconomic impact
Making this transformation viable will require massive financial commitments, estimated at approximately $10.3 trillion per year between 2026 and 2050. These resources will be primarily directed toward generation, grid infrastructure, and end-use electrification.
Despite the high volume of resources required, the socioeconomic return promises to be highly positive. A trajectory aligned with the 1.5°C goal could generate an accumulated economic gain of $46 trillion by 2050, compared to maintaining current trends.
The job market will also see significant expansion. It is estimated that jobs in the clean energy sector will more than quintuple, easily surpassing the current workforce of 16 million.
Another direct impact involves consumer costs. With increased competitiveness in electricity markets, projections point to a reduction of up to 15% in final electricity tariffs by the middle of the century.
Paths to a sustainable transition
To guide world governments over the next decade, IRENA has outlined seven priority areas for action. The agenda includes integrated market planning, industrial strategies, international cooperation, and social protection guarantees.
The primary global challenge lies in coordinating the phase-out of fossil fuels while ensuring supply reliability and affordable prices as low-carbon alternatives gain global scale.
