The global energy transition continued to accelerate in 2025, with renewable energy accounting for 49% of total installed power capacity worldwide, according to a recent report by the International Renewable Energy Agency (IRENA).

Renewables accounted for 85.6% of all new power capacity additions during the year, underscoring their dominant role in electricity system expansion. A total of 692 GW capacity was added in 2025, representing a 15.5% year-over-year growth. This pushed total global renewable power capacity to approximately 5,149 GW by the end of the year.

 

Solar Leads Capacity Surge

Solar technology remained the primary driver of this expansion, contributing 510 GW, or nearly three-quarters of all renewable additions in 2025. Wind energy followed second with 159 GW added during the year.

Other renewable technologies, such as hydropower, bioenergy, geothermal, and marine energy, continued to play smaller roles in annual additions.

Hydropower maintained its position as a major source of installed capacity globally, but its growth remained comparatively slow. Between 2016 and 2025, global hydropower capacity increased from 1,255,781 MW to 1,455,588 MW, reflecting incremental expansion rather than rapid growth.

Marine energy remained largely stagnant over the same period, declining from 524 MW in 2016 to 490 MW in 2025.

The data also indicates a growing shift toward both large-scale utility installations and distributed generation systems, including off-grid renewable capacity.

According to the U.S. Energy Information Administration, the U.S. is forecast to add 86 GW of new utility-scale electric generation capacity in 2026, with solar accounting for 51%, battery storage for 28%, and wind for 14%. EIA also notes that 53 GW of new capacity was added in 2025, the largest single-year addition since 2002.

Regional Concentration

Despite the strong global growth, the report underscores a significant concentration of renewable capacity additions in a limited number of regions.

China, the U.S., and the European Union together accounted for 79.5% of global renewable capacity additions in 2025, totaling 550 GW. This concentration highlights a growing imbalance in the global energy transition.

China added 311 GW of solar and 119 GW of wind power capacity in 2025, according to data released by the National Energy Administration. These additions were the highest on record.

Africa accounted for only 1.6% of global additions, adding 11.3 GW during the year, while the region recorded a 15.9% increase in its total renewable capacity to 82 GW.

The Middle East registered the fastest growth rate globally at 28.9%, driven primarily by capacity additions in Saudi Arabia. Small Island Developing States recorded a 19.6% growth rate but continued to account for only 0.2% of global renewable capacity, indicating limited scale despite relatively high growth rates.

System Integration Challenges

As renewable capacity approaches half of global installed power, IRENA highlights increasing pressure on electricity systems to adapt to higher shares of variable generation. Grid flexibility, system integration, and infrastructure upgrades are identified as critical requirements to sustain further growth.

The report notes that while capacity additions continue to accelerate, the pace remains insufficient to meet global sustainability targets, indicating a need for faster deployment.

It also underscores the growing importance of distributed and off-grid renewable energy systems as part of the broader energy transition. However, the report does not include analysis of investment flows, financing structures, or capital expenditure trends, focusing strictly on installed capacity and technology-level data.

The report concludes that while 2025 marks a milestone year with the largest-ever capacity additions and renewables nearing a 50% share of global power capacity, the transition remains incomplete.

Accelerated deployment, improved grid infrastructure, and more equitable investment distribution will be critical to sustaining growth and meeting long-term energy and climate goals.