Electrification and Renewable Growth Increase Storage Needs

IRENA expects the share of variable renewables to double by 2030

The accelerating pace of electrification and the rapid growth of renewable energy capacity are expected to increase the need for flexibility solutions across power systems, according to the latest Tracking SDG7: The Energy Progress Report 2026 published by the International Renewable Energy Agency (IRENA).

The report states that faster electrification in transport and heating sectors, growing green hydrogen production, and additional electricity demand from expanding data centers are expected to significantly increase global electricity consumption in the coming years.

Under IRENA’s 1.5°C Scenario, global solar PV capacity is projected to reach 6,153 GW by 2030, while onshore wind capacity is expected to increase to 2,620 GW and offshore wind capacity to 413 GW.

The report also highlights the growing role of variable renewable energy (VRE) sources such as wind and solar. The share of variable renewables in total installed power capacity is projected to increase from 31 percent in 2024 to 61 percent by 2030.

According to IRENA, achieving the global objective of tripling renewable power capacity by 2030 would require installed renewable capacity to reach approximately 11.2 TW, significantly above current national commitments.

The increasing share of variable renewable generation is expected to place greater emphasis on grid flexibility, system balancing, demand-side management, and energy storage solutions. As electricity systems integrate larger volumes of wind and solar generation, technologies that support flexibility are becoming increasingly important for maintaining system reliability.