Policy & Regulation Energy transition is ‘off-track’ but the power sector offers a bright spot, IRENA says 3.28.2023 Share (Sunset over the Pacific as seen from the International Space Station. Credit: NASA) The global energy transition is “off-track,” aggravated by the effects of multiple global crises, according to the World Energy Transitions Outlook 2023 Preview from the International Renewable Energy Agency (IRENA). The report called for a “fundamental course correction” in the energy transition. It said that investment and “comprehensive policies across the globe and all sectors” must grow renewables and instigate the structural changes required for what it said would be “the predominantly renewables-based” energy transition. The preview report said that the scale and extent of change falls “far short” of a 1.5°C pathway targeted at international climate summits. It added that progress has been made, notably in the power sector where renewables account for 40% of installed power generation globally, contributing to an “unprecedented” 83% of global power additions in 2022. It said that in order to limit global warming to the 1.5°C target, deployment must grow from some 3,000 GW today to more than 10,000 GW in 2030, an average of 1,000 GW annually. It noted that deployment is limited to certain parts of the world. China, the European Union and the United States accounted for two-thirds of all additions in 2022. IRENA’s Director-General Francesco La Camera said the emphasis must shift from supply to demand, toward “overcoming the structural obstacles impeding progress.” The preview report outlined three “priority pillars” of the energy transition: the physical infrastructure, policy, and regulatory enablers, and a well-skilled workforce. It said those pillars require “significant investment” and new ways of cooperation in which “all actors can engage in the transition and play an optimal role.” Subscribe today to the all-new Factor This! podcast from Renewable Energy World. This podcast is designed specifically for the solar industry and is available wherever you get your podcasts. Record investment It pegged global investment in energy transition technologies at a record $1.3 trillion in 2022, and said that yearly investments must more than quadruple to more than $5 trillion to stay on the 1.5°C pathway. By 2030, cumulative investments must amount to $44 trillion, with transition technologies representing 80% of the total, or $35 trillion, prioritizing efficiency, electrification, grid expansion and flexibility. It said that around $1 trillion of planned annual fossil fuel investment by 2030 should be redirected towards transition technologies and infrastructure. And it said that public sector intervention would be needed to channel investments towards countries “in a more equitable way.” It said that in 2022, 85% of global renewable energy investment benefitted less than 50% of the world’s population. In particular, Africa accounted for 1% of additional capacity in 2022. IRENA said that regions that include some 120 developing and emerging markets continue to receive comparatively little investment. La Camera said, that a shift in support to developing nations “must put more focus on energy access and climate adaptation.” He called on multilateral financial institutions to direct more funds, at better terms, towards energy transition projects and build the physical infrastructure that is needed to sustain the development of a new energy system. Related Posts Maxeon solar module shipments into U.S. detained since July Another solar project breaks ground in a red Ohio district Yellen says ending Biden tax incentives would be ‘historic mistake’ for states like North Carolina Solar industry, nonprofits say state regulators and private utilities are stifling rooftop solar