IEA: Solar Power to Increase by 80% by 2030

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Led by solar power installations, the International Energy Agency (IEA) said Tuesday it expects the amount of renewable power available globally to more than double by the end of the decade.

The IEA said it expects total renewable power capacity to increase globally by 4,600 gigawatts (GW) by 2030. That's the loose equivalent of the total power capacity of China, the European Union and Japan combined, the agency said.

Of the various forms of renewable energy available, solar power is on pace to increase by more than 80% over the next five years, well overshadowing the likes of wind and geothermal energy.

"In addition to growth in established markets, solar is set to surge in economies such as Saudi Arabia, Pakistan and several Southeast Asian countries," IEA Executive Director Fatih Birol said. "As renewables' role in electricity systems rises in many countries, policy makers need to play close attention to supply-chain security and grid integration challenges."

The Saad II Solar Power Station in Saudi Arabia, led by ACWA Power International, is among the nation's largest, with some 1.1 GW of power. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a detailed plant profile.

Government incentives are supporting the industry in large part. A renewable energy directive in the European Union, for example, mandates that member states allocate funding to support renewable energy options, and most global governments have benchmarks for net carbon neutrality.

The IEA recently received criticism for tacitly taking a greener stance on the energy sector, though it wasn't all positive news in its mid-term outlook on renewables. Policy changes in the U.S. and China, the two largest economies in the world, respectively, mean the outlook is slightly less upbeat than last year.

"The early phase-out of federal tax incentives along with other regulatory changes in the United States lowered our growth expectations for renewables in the U.S. market by almost 50% compared with last year's forecast," according to the report. "China's shift from fixed tariffs to auctions is impacting project economics, resulting in a reduction in our forecast for renewables' growth in the Chinese market."

In the U.S. market, the world's largest, President Donald Trump is throwing up legal roadblocks to renewable energy developments, lending much of his support to coal, nuclear power and liquefied natural gas.

Last week, the U.S. Department of Energy (DOE) slashed 321 financial awards, totaling $7.56 billion, aimed at clean energy projects. The move deepened a partisan divide over federal spending that is unlikely to be resolved in the coming days. For more on that, see October 6, 2025, article - DOE Axes $7.56 Billion in Clean Energy Funds Amid Shutdown Brawl.

But solar power continues to dominate the energy market in the U.S., even with the political headwinds. The DOE said in a monthly report for September that total electric power generation is on pace to increase by 2.3% annually in 2025 and another 3% by next year.

"We expect that solar power will supply the largest share of the increase in both years," analysts wrote.

Among the dozen or so solar facilities still under construction in the U.S., the Crowded Star Solar power facility slated for San Francisco is among the largest, with 400 megawatts (MW) of power capacity and another 200 MW in battery storage. Subscribers can click here for the project reports.

In all, Industrial Info is tracking more than 1,700 solar power projects under construction in the U.S. Subscribers can click here for a list of detailed project reports.

Apart from political headwinds, the IEA warned of over-dependence, saying the global supply chain for solar power remains "heavily concentrated" in China, adding another layer of risk.

"While new investment to diversify supply chains is taking place in countries around the world, concentration in China for key production segments is set to remain above 90% through 2030," it said.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).