Renewable energy is good for the planet and for people, but what is it exactly? From solar to wind, find out more about the world’s fastest-growing energ y source s and how we can u se them to benefit people and communities, the climate and the environment, and the economy .
Renewable energy is energy derived from natural resources that can replenish themselves in less than a human lifetime, without depleting the planet’s resources.
These resources – such as sunlight, wind, rain, tides, waves, biomass, and thermal energy stored in the earth’s crust – are available , in one form or another , across the globe . T hese energy sources are not only renewable and inexhaustible , they also emit fewer greenhouse gases and can minimise envir onmental impacts . Renewable energy can also be harnessed t o produce other energy carriers, such as hydrogen .
Fossil fuels – oil, coal, and gas – cannot replenish as fast as we are burn ing them , while their extraction and production emits planet- heating greenhouse gases and pollution that threatens human health.
The shift to renewables has been driven by multiple global crises – worsening climate change , skyrocketing fossil fuel prices, macroeconomic instability, and a pressing energy crisis.
R enewables have become more developed and affordable over time and have been growing faster than all other energy forms since 2011 . Renewable energy had another record-breaking year in 2023, with installed power capacity gr owing by 36% to reach 473 gigawatts (GW) . R enewables now account for almost 13% of our total energy use (see figure , “Total Final Energy Consumption by Source”) and 30% of our electricity comes from renewable sources . The growing use of electricity in agriculture, buildings, industry and transport has also enabled greater integration of renewables.
Despite consensus that a move from fossil fuels to renewable energy is needed, renewables still fac e significant barriers a nd unfair competition with heavily subsidised fossil fuels. As a result, the world still relies predominantly on fossil fuels to obtain energy. Meanwhile, the pollution caused by fossil fuels has reached record levels.
A ll energy sources have an impact on our environment , and r e newable energy is no exception . While each renewable energy source has its own sp e c ificities and trade-offs , the advantages over the devastating impacts of fossil fuels are undeniable: lower use of water and land , less air and water pollution, reduced wildlife and habitat loss, and far fewer greenhouse gas emissions.
Building a shared understanding of its sustainability is key to accelerating the urgent shift to a renewable-based energy system, maximi s ing benefits for our society and economy.
F ossil fuel-based road transport, industrial activity, and power generation (as well as the open burning of waste in many cities) are the greatest source s of air pollution and greenhouse gases globally . In many developing countries, the use of charcoal and wood for heating and cooking also contributes to poor indoor air quality. According to studies by the World Health Organisation, the presence of particles and other air pollutants in urban skies are responsible for huge health impacts, millions of premature deaths , and staggering economic costs.
Renewable energy sources produce significantly lower emissions throughout their entire lifecycle compared to fossil fuels. Importantly, during their operation, they have minimal to no impact on both air quality and greenhouse gases. Replacing the current fossil fuel-based energy system with a renewables-based system is the most urgent and efficient way to tackle harmful emissions and air pollution.
“Instead of depleting precious resources and polluting the environment, renewable energy meets the objectives of a circular economy and is a strong motor for social and economic development”
Inger Andersen, UNEP Executive Director.
In many parts of the world, renewable energy technologies ( particularly wind and solar ) are already more cost-effective than fossil fuels. T he leveli s ed cost of electricity (LCOE) for renewable technologies continue to decline rapidly as seen in the above figure.
Heavy subsidies from governments and financial institutions create the false impression that fossil fuels are cheap and abundant . These subsidies reach ed USD 7 trillion in 2022.
Unpredictable energy markets and geopolitical uncertainty have moved energy security and infrastructure resilience to the forefront of many national energy strategies. Geopolitical strife and upheavals often come with increasing energy prices and reduced access to resources, threaten ing the security of energy supply. Since renewable energy is produced locally and reduces the need for energy imports, it is less affected by geopolitical crisis, price spikes, or sudden disruptions in the supply chain, thereby enhancing national and regional energy security.
“An energy system based on distributed and decentralised generation is more flexible and resilient to those central shocks which are becoming more frequent with climate change”.
Rana Adib, REN21 Executive Director.
Deployment of renewables creates employment opportunities and contributes to growth in gross domestic product, largely through the expansion of renewable energy manufacturing and deployment. Renewable energy ha d created more than 12.7 million jobs globally as of 2021 (see figure , “Global Renewable Energy Employment”) . T he employment potential from renewables far exceeds expected job losses in the fossil fuel industry , while an estimated 70% of jobs in the oil and gas industry overlap with the skills needed for the energy transition.
Renewables can also play a key role in reducing gender inequality, for instance by creating jobs and entrepreneurial opportunities for women. On a global scale, the renewable industry has a higher share of female employed, with 32% of the workforce being women, compared to 22% in the oil and gas industry.
Energy communities are citizen-driven groups that collectively organise and own renewable energy projects. In recent years, the number of community energy projects using renewable sources ha s surged in various parts of the world. Although community energy is frequently associated with Northern European countries like Denmark and Germany, such projects are emerging in other parts of the world including Thailand, Japan and Canada. Energy communities enable citizens to directly participate in the energy transition, increasing overall community engagement and societal support for renewable energy projects.
“Cities can actively drive the fight against climate change at the national and global level. They can tap into opportunities that other levels of government do not have, including a more direct relationship with local citizens and businesses. Citizen engagement and public pressure have raised cities’ level of ambition on renewables in many places around the world.”
Svenja Schulze, Minister for Environment, Nature Conservation and Nuclear Safety, Germany.
Renewables provide opportunit ies for further inclusion through their potential for decentralised energy supply, enabling increased electricity access to rural areas far from the main power grid. Decentralised renewables are the fastest way to scale up electricity access, which works to alleviate poverty and support low-income communities.
Renewable power and heat can be used in all sectors: building s , indu stry , agriculture and transport (see figure , “Renewable Share of Total Final Energy Consumption ”) .
Thermal comfort in buildings (heating and cooling) . Examples for the use of renewable energy in buildings are solar thermal water heaters, biomass boilers, heat pumps, and natural cooling. Reducing the energy demand of buildings and industry is key to transitioning to a renewables-based energy system. Therefore, an integrated policy approach to renewable energy and energy effi ciency is fundamental.
Industrial and agricultural heating and cooling processes , such as food processing and pulp and paper, can also be run on renewable energy. Hydrogen produced with renewable electricity can meet the needs of high- intensive industrial processes in the iron and steel and chemical industries.
In transport , renewable energy can be used in the form of sustainable biofuels, high-percentage biofuel blends and drop-in biofuels. Renewable electricity can power the world’s growing fleet of electric vehicles. Car batteries can be used to store electricity for later use . Renewable electricity also can be used to produce electro-fuels, such as hydrogen to fuel long-haul transport, aviation, and shipping. A focus on reducing overall fuel demand in the transport sector is critical and can be accomplished through policies that promote energy efficiency and conservation.
Worldwide, renewables already suppl y around 30 % of electricity in 202 3. Yet, outside of electricity, good news is hard er to come by. Uses of electricity (e.g., lighting and appliances) only represent 23 % of the world’s energy needs. Urgent action is needed to ramp up the far lower shares of renewables in heat and fuels, which collectively provide three-quarters of energy supply .
The Renewables Global Status Report (GSR) stands alone as the world’s only crowd-sourced account of renewable energy. It dives into policies, markets, and beyond, offering the most current global narrative on renewable energy.
Since 2005, the GSR has partnered with numerous contributors to highlight ongoing advancements and emerging trends that define the future of renewables. This annual report is a collaborative endeavor involving hundreds of experts who contribute data, review chapters, and co-author the findings.
The Global Futures Report: Renewables for Sustainable Transport (GFR) delves into strategies for rapidly expanding renewable energy adoption in transportation, a sector that consumes 30% of the world’s energy. REN21’s reports serve as frameworks for discussing the future of renewable energy, pinpointing opportunities, barriers, and paths forward. Specifically focusing on transport, this report aims to highlight crucial areas of divergence among stakeholders, guiding strategic conversations rather than providing definitive conclusions.
REN21’s Renewable Energy and Sustainability Report (RESR) serves as a comprehensive reference that assesses both the advantages and potential drawbacks of deploying renewable energy. It draws on a wide array of existing solutions and best practices globally to maximise the benefits of renewables while minimising their negative impacts. Establishing these benchmarks is crucial for guiding a sustainable shift towards renewable energy and fostering the trust and support needed from society.
There are plenty of cities in the world that already source 100 percent of their electricity from renewables. Now, they are taking steps to expand their ambitions to get rid of fossil fuels in heating, cooling, transport and industry. This report is an annual stocktaking of how city action can directly support the transition to renewable energy. It aims at making data available, more standardised, easier to evaluate and to compare.
