IRENA Predicts 2026 Decline in Global Renewable Energy Growth

The International Renewable Energy Agency (IRENA) has predicted a decline in global renewable energy capacity additions in 2026 for the first time in five years, attributing this to electricity transmission constraints and trade barriers. Speaking on October 27 at the Singapore International Energy Week, IRENA Director-General Francesco La Camera noted that electricity networks are not expanding quickly enough to support the increasing generation from solar and wind, especially in China.

In 2025, global installations, including hydropower, rose by 692 gigawatts, bringing total installed renewable capacity to approximately 5,149 gigawatts. However, during the first half of 2026, China curtailed enough renewable generation to meet Mexico's electricity needs for an entire year.

This curtailment happens when generation exceeds what transmission systems can handle. La Camera indicated that renewable additions in other regions would not compensate for the slowdown in China, although he did not provide a specific forecast for 2026.

The increasing electricity demand from various sectors is further complicating the situation.