DHAKA, October 13, 2026: The global energy transition risks losing momentum unless governments urgently modernise power grids, expand energy storage and accelerate energy efficiency improvements, the International Renewable Energy Agency (IRENA) has warned.
IRENA’s World Energy Transition Outlook 2026, released on Tuesday, outlines urgent reforms needed to align the global energy system with the 1.5°C climate pathway. Despite record renewable energy capacity additions in 2025, grid infrastructure has struggled to keep pace, while improvements in energy efficiency remain insufficient.
“The global energy transition is under stress,” IRENA Director-General Francesco La Camera said, emphasising that renewable energy expansion alone cannot deliver the transition without a more electrified, efficient and flexible energy system.
The report estimates that global installed renewable power capacity must increase from 5.2 terawatts to around 38.2 terawatts by 2050. Electricity’s share of final energy consumption must reach 35% by 2035 and exceed 50% by 2050, while solar and wind would need to supply more than 80% of global electricity by mid-century.
IRENA warned that inadequate investment in transmission and distribution networks, storage and system flexibility could become major obstacles to achieving these targets.
The report projects that an accelerated transition aligned with the 1.5°C pathway could generate around US$46 trillion in cumulative economic gains by 2050 compared with business as usual. Renewable energy employment could grow more than fivefold from just over 16 million jobs, while improved electricity systems could reduce end-user power prices by 15% by 2050.
Realising these benefits would require an estimated US$10.3 trillion in cumulative investment between 2026 and 2050, primarily in renewable power, grids, electrification and system flexibility.
IRENA called for integrated energy planning, grid modernisation, stronger investment strategies, social and environmental safeguards, and greater international cooperation. It stressed that governments must ensure the transition delivers reliable, affordable energy while accelerating the shift away from fossil fuels.
