Tunis:The International Renewable Energy Agency (IRENA) has released its 2026 World Energy Transition Outlook (WETO), emphasizing the urgent need for a significant expansion of global installed renewable power to about 38.2 terawatts by 2050. This increase is necessary to align the global energy transition with a 1.5°C-compatible pathway and address the current overshoot of temperature due to carbon emissions.
According to Emirates News Agency, IRENA highlights that while renewable energy additions are reaching new records, other critical components such as grid enhancements and energy efficiency improvements are not keeping pace with the rapidly increasing energy demand. Consequently, a dramatic acceleration in electrification and the deployment of renewables is required.
The report outlines that electricity's share of final energy consumption needs to rise to 35% by 2035 and exceed 50% by 2050, with over 80% of this electricity supplied by solar and wind by mid-century. It also stresses the importance of scaling up energy efficiency, grid capacity, storage, and system flexibility to prevent them from becoming bottlenecks in the energy transition.
Francesco La Camera, Director-General of IRENA, stated that the global energy transition is under stress, with energy efficiency and grid capabilities lagging behind. He emphasized the necessity of reforms to develop an electrified, efficient, flexible energy system powered by renewables. He also pointed out that these elements form the backbone of the energy transformation, which must be deployed rapidly and at a large scale.
WETO 2026 presents a strong economic case for the transition, predicting a 1.1% annual economic growth above business as usual, amounting to cumulative societal gains of approximately USD 46 trillion by 2050. Renewable energy job opportunities could increase more than fivefold, and electricity competitiveness could potentially reduce end-user power prices by 15% by 2050.
The report also notes that achieving this transition demands substantial investment, with an annual cumulative requirement of about USD 10.3 trillion from 2026 to 2050, primarily directed towards renewable power, grid enhancements, flexibility, and end-use electrification.
La Camera emphasized that the quality of the transition is as crucial as its speed, advocating for affordability, social protection, and equitable access to economic opportunities to maintain public support and ensure widespread benefits. Policymakers are urged to manage the transformation in a way that ensures reliability, affordability, and energy security while accelerating the shift to clean alternatives.