In 2024, the global energy sector generated more electricity from renewable sources than from coal for the first time. This was made possible by a record-breaking increase in installed capacity: 582 GW of new renewable energy capacity was added over the course of the year—15% more than in 2023. Nearly three-quarters of this growth came from solar energy, which has already surpassed hydropower in terms of installed capacity and has become the world’s largest renewable energy source.
However, serious systemic challenges are hidden behind the growth figures. Although renewable energy sources now account for nearly half of the world’s total installed capacity, their share of actual electricity generation is only about 32%. This is not a statistical error, but a consequence of the fundamental difference between installed capacity and actual generation. Wind and solar power do not operate on a schedule but are weather-dependent, and their capacity factor is significantly lower than that of gas or nuclear power plants.
Structure of Global Capacity and Generation
By the end of 2024, total installed global generation capacity reached 9,600 GW. Of this, 4,443 GW comes from renewable sources, including large-scale hydropower. Excluding hydropower, the share of renewable energy is approximately 3,166 GW.
| Technology | Installed capacity, GW | Share of renewable energy |
| Solar energy | 1,866 | 42% |
| Hydropower | 1,277 | 28.7% |
| Wind energy | 1,133 | 25.5% |
| Bioenergy and geothermal | ~166 | 3.8% |
However, the picture is different when looking at the actual generation mix: solar power accounts for 6.9% of global electricity generation, wind power for 8.1%, and hydropower for 14.3%. Nuclear power, despite its modest share of installed capacity (about 400 GW), accounts for 9% of generation thanks to its high capacity factor.
The Hidden Cost of “Cheap” Renewables
The widely cited LCOE (levelized cost of energy) metric creates the illusion that solar and wind energy are the cheapest sources. According to IRENA, the LCOE for solar in 2024 was $0.043/kWh, and for wind, $0.034/kWh. However, this figure reflects only the direct costs of construction and operation, ignoring the systemic costs that arise when integrating RES into the power grid.
As soon as the share of renewable energy exceeds 20–30%, costs begin to rise:
- for grid balancing (frequency, voltage);
- for capacity reserves (gas-fired peaking plants, batteries);
- for grid modernization and expansion;
- for energy storage.
According to expert estimates, the total system cost of renewable energy sources when their share exceeds 30% can reach $85–190/MWh, which is 2–4 times higher than the stated LCOE. In countries with a high share of renewable energy, such as Germany and Denmark, these costs are already passed on to consumers through grid tariffs and special fees.
Technological and Infrastructure Bottlenecks
The growth of renewable energy faces severe constraints. In the U.S., the backlog of projects awaiting grid connection has exceeded 2.6 TW—10 times more than is commissioned annually. In Europe, connection delays reach 4–5 years. Meanwhile, the annual construction of new power transmission lines in the U.S. totals just 322 miles, whereas 5,000 miles per year are needed to support the energy transition.
The problem of energy storage also remains unresolved. Despite record growth in the battery market (+64% in 2024), their total global capacity is less than 50 GWh, which is insufficient even for daily balance when the share of renewable energy exceeds 25%.
Environmental footprint and dependence on China
“Green” energy isn’t as clean as it seems. The production of solar panels requires toxic chemicals and enormous amounts of energy (often from coal-fired power plants in China). By 2050, the world will have accumulated 78 million tons of solar waste, the recycling of which is economically unfeasible.
Wind turbine blades made of composite materials are virtually impossible to recycle. In Europe, they are buried in landfills. And 80–95% of all renewable energy equipment is manufactured in China, creating a new form of energy dependence.
Political instability and slowing growth
By 2025, global enthusiasm for renewable energy began to wane. In the U.S., investment in renewable energy fell by 36% due to the phasing out of federal subsidies. Support for solar energy among Republicans fell from 84% in 2020 to 61% in 2025. At the same time, investment in the EU grew by 63%, but largely due to capital outflows from the U.S.
The International Energy Agency (IEA) has already lowered its forecast for renewable energy growth for 2025–2030 by 5%, acknowledging that the world is falling short of the COP28 targets to triple capacity by 2030.
Conclusion
The global renewable energy industry is indeed experiencing a period of record growth, but this growth is taking place against a backdrop of mounting systemic, technological, and political risks. The “affordability” of renewable energy is relative and heavily dependent on context: climate, grid density, subsidy levels, and the stage of development of the energy system. In countries with favorable conditions (sun, wind, developed grids), renewable energy is already competitive. Elsewhere, it requires large-scale support and carries hidden costs that sooner or later fall on the consumer.
