ABU DHABI, October 13, 2026: Accelerating electrification powered by renewable energy must become a global priority through 2035 to align the energy transition with the 1.5°C climate target, according to a new report by the International Renewable Energy Agency (IRENA).
The World Energy Transitions Outlook (WETO) 2026, released on Tuesday, calls for fundamental reforms to global energy systems, emphasising that a genuine transition requires replacing fossil-fuel-based systems rather than simply adding renewable capacity to the existing energy mix.
The report highlights persistent challenges despite record renewable energy additions in 2025, including inadequate grid expansion, rapidly rising energy demand and insufficient improvements in energy efficiency. These constraints threaten to slow progress towards a cleaner, more sustainable and affordable energy future.
According to IRENA, global installed renewable power capacity must increase from approximately 5.2 terawatts (TW) to 38.2 TW by 2050. Electricity’s share of final energy consumption must rise to 35% by 2035 and exceed 50% by mid-century, with solar and wind expected to supply more than 80% of global electricity by 2050.
However, achieving these targets will require substantial investment in modern electricity grids, energy storage, system flexibility and efficient technologies, alongside the expansion of renewable generation.
IRENA Director-General Francesco La Camera said the global energy transition was under pressure, as renewable energy growth alone was insufficient to address rising demand and infrastructure constraints.
He stressed that electrification, grid modernisation, storage, flexibility and energy efficiency must form the backbone of a transformed energy system capable of ensuring energy security, affordability and competitiveness while keeping climate goals within reach.
The report also highlights the economic benefits of accelerating the transition. Under IRENA’s 1.5°C scenario, global economic growth could exceed the business-as-usual pathway by 1.1% annually, generating cumulative economic gains of approximately $46 trillion by 2050.
Renewable energy employment could increase more than fivefold from just over 16 million jobs today, while improved electricity competitiveness could help reduce end-user power prices by 15% by 2050.
Realising these benefits, however, would require cumulative investment of approximately $10.3 trillion annually over the 2026–2050 period, with major funding directed towards renewable power generation, electricity networks, flexibility solutions and electrification across end-use sectors.
La Camera emphasised that the quality of the transition would be as important as its speed, calling for affordability, social protection and equitable access to economic opportunities to be incorporated into implementation strategies.
The report outlines seven priorities for governments and policymakers over the coming decade, including integrated energy and market planning, country-specific transition roadmaps, grid modernisation, stronger industrial and investment strategies, effective social and environmental policies, and deeper international cooperation.
IRENA said governments must manage the transformation in an orderly manner that safeguards reliability, affordability and energy security while accelerating the adoption of clean energy alternatives.
A well-managed transition away from fossil fuels, the agency concluded, can strengthen economic competitiveness, improve public health, enhance resilience and support long-term prosperity while advancing global climate objectives.
