KPMG – Turning the tide in scaling renewables

The report highlights the need to rapidly scale the deployment of renewable energy to achieve the goals set out in the Paris Agreement. The International Energy Agency (IEA) states in a 2023 report that renewable energy capacity additions must triple by 2030 compared to 2022 levels. This means installing over 1,200 gigawatts annually by the end of the decade. The focus on enhancing renewable capacity is essential not only for meeting climate targets but also for complementing traditional energy sources in maintaining energy supply stability and reliability. However, reaching these ambitious goals is a challenging task, especially considering that a similar pace of renewable deployment needs to continue until 2050. The International Renewable Energy Agency (IRENA) predicts that annual energy-related carbon dioxide emissions need to decrease by 37 gigatons compared to 2022 levels to achieve net-zero emissions by 2050. To achieve this, the share of renewables in the global energy mix needs to increase from the current 14% to 77% by mid-century. However, the global renewable energy industry is currently not positioned to deliver on the speed and scale of growth required. Despite the progress made in the past decade, including improved performance, increased production, and reduced costs, the industry still has a long way to go to achieve its goals.