BAKU, Azerbaijan, November 6. The share of renewable energy sources (RES) in global electricity generation will increase from 33% in 2025 to nearly 45% by 2031.
This was stated in the International Energy Agency (IEA) report “Renewables 2026: Analysis and Forecasts to 2031.”
According to the report, the combined electricity generation from wind and solar power plants will more than double by 2031 and exceed 28 percent of global electricity production.
The report notes that solar power has already surpassed wind power in terms of electricity generation. According to the IEA’s forecast, by 2029 solar power will also surpass hydropower to become the world’s largest source of renewable electricity.
"At the same time, the increasing share of variable renewable energy sources creates additional challenges for power grids. By 2031, their share of total electricity generation will exceed 50 percent in 17 countries. Consequently, it will be necessary to strengthen power grids and interconnections, develop energy storage systems, increase the capacity of dispatchable generation, and enhance the flexibility of electricity consumption.
The volume of curtailment of wind and solar power generation in key markets nearly doubled in both 2024 and 2025. Last year, this figure reached nearly 200 terawatt-hours (TWh), and by 2031 it could exceed 800 TWh, accounting for nearly 8% of total wind and solar power generation.
In Europe, the number of hours with negative electricity prices also continues to rise. Price declines during periods of high solar power generation reduce revenues for projects operating under market conditions, as well as for participants in corporate power purchase agreements," the agency reports.
The report notes that one solution to these problems is the implementation of hybrid projects that combine solar and wind power plants with battery energy storage systems.
“In a number of regions, the cost of electricity generated by such projects is already less than $75 per megawatt-hour. At the same time, they provide a more flexible electricity supply compared to individual solar and wind power plants,” the report states.
Furthermore, the report emphasizes that such projects are becoming increasingly widespread thanks to special auctions and procurement mechanisms, particularly in India.
“Their use helps reduce constraints on electricity generation, improve the efficiency of energy facilities, and provide additional services to power systems,” the IEA notes.
In addition, the agency forecasts a nearly sixfold increase by 2031 in the capacity of battery energy storage systems installed directly at consumer sites. Their total capacity will exceed 670 gigawatt-hours. It is expected that by that time, more than one-third of residential solar photovoltaic systems will be equipped with batteries.
"Over the past year, the volume of applications for grid connection for renewable energy projects in advanced stages of implementation has increased by 60% and reached 3,000 gigawatts. The entire increase came from battery energy storage systems and hybrid renewable energy projects.
Tighter grid connection regulations and reforms in queue management in India, the UK, and the US have resulted in nearly half of the wind and solar energy projects in the early stages of development being removed from the queues," the IEA reports.
