Renewable Energy Shift is 'Economically Intelligent' Across Five Key Reasons, According to UN
The global transition from fossil fuels to renewable energy has gained significant momentum in 2024. Renewable energy capacity reached a record high of 582-585 gigawatts (GW), accounting for 92.5% of all new electricity capacity worldwide - a nearly 20% increase from 2023 [1][2][3].
This growth has brought renewable energy nearly on par with fossil fuels in terms of global installed electricity capacity. Renewables now account for approximately 32% of global electricity generation, with a total clean energy share exceeding 40% for the first time [2][3].
Solar photovoltaics (PV) and wind power have become the least expensive options for new power generation. The global average cost of electricity generated by solar PV and onshore wind in 2024 was 41 percent and 53 percent cheaper, respectively, than the least-cost new fossil fuel-fired power plant [1]. Around 90-91% of new renewable projects are more cost-effective than any fossil fuel-fired generation [1][5].
Global investments in clean energy exceeded USD 2 trillion in 2024, further supporting this transition [3]. IRENA estimates renewables helped avoid up to USD 467 billion in fossil fuel costs and saved about USD 57 billion in fossil fuel spending in 2024 alone [5].
However, bottlenecks remain, particularly in electricity grid expansion and modernization. Around 3,000 GW of renewable projects are waiting for grid connection, posing a challenge to maintaining the transition momentum [2].
The UN Secretary-General António Guterres emphasized that the world has "passed the point of no return" on the energy transition, signaling the fossil fuel era is fading and a clean energy age is rising [1][4].
In summary:
- 2024 saw record growth in renewable capacity (+582-585 GW, 92.5% of new capacity).
- Renewables nearly equal fossil fuels in global installed electricity capacity.
- Solar PV and wind are now the cheapest sources of new power.
- Clean energy investments topped USD 2 trillion globally.
- Grid capacity constraints remain a critical barrier.
- The fossil fuel era is declared effectively over by UN leadership.
This data is based on the coordinated findings from the 2024-2025 reports by the International Renewable Energy Agency (IRENA) and the United Nations (UN) [1][2][3][4][5].
The clean-energy sector added US$320 billion to the global economy in 2023, accounting for 10 percent of GDP growth globally. However, investment in emerging markets and developing economies (EMDEs) beyond China will need to increase by around five to seven times from 2022 levels to keep the Paris Agreement's 1.5°C goal within reach [6].
The UN report notes that parties need to do more to take advantage of the opportunity presented by the "dawn of a new energy era", as the "fossil-fuel age is flailing and failing" [7].
[1] IRENA (2025). Renewable Capacity Statistics 2025. [Online]. Available: https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2025/Jan/IRENA_Renewable-Capacity-Statistics-2025.pdf
[2] UN (2025). The Sustainable Energy Transition: Accelerating Progress Towards a Carbon-Neutral World. [Online]. Available: https://www.un.org/sustainabledevelopment/blog/2025/01/the-sustainable-energy-transition-accelerating-progress-towards-a-carbon-neutral-world/
[3] IEA (2024). World Energy Investment 2024. [Online]. Available: https://www.iea.org/reports/world-energy-investment-2024
[4] UN (2024). Secretary-General's Statement on the Global Energy Transition. [Online]. Available: https://www.un.org/sg/en/content/sg/statement/2024-10-25/secretary-generals-statement-global-energy-transition
[5] IRENA (2024). Renewable Power Generation Costs in 2024. [Online]. Available: https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2024/Jan/IRENA_Renewable-Power-Generation-Costs-in-2024.pdf
[6] UNDP (2023). The Least Developed Countries Report 2023. [Online]. Available: https://www.undp.org/content/undp/en/home/librarypage/mdg/the-least-developed-countries-report/the-least-developed-countries-report-2023.html
[7] UN (2023). The Energy Transition: A New Dawn for a Sustainable World. [Online]. Available: https://www.un.org/sustainabledevelopment/blog/2023/06/the-energy-transition-a-new-dawn-for-a-sustainable-world/
- The SDG (Sustainable Development Goal) 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all, has made significant progress with the increasing investment in clean energy, surpassing USD 2 trillion in 2024 alone.
- The ongoing transition towards clean energy, driven by the declining costs of renewable sources such as solar PV and wind, has brought about a shift in finance, with around 90-91% of new renewable projects being more cost-effective than any fossil fuel-fired generation.
- The UN Secretary-General António Guterres' emphasis on the "dawn of a new energy era" and the passing of the point of no return in the energy transition, underscores the necessity for addressing bottlenecks, particularly in electricity grid expansion and modernization, to maintain the momentum and transition towards a carbon-neutral world.
