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Decisive moments for energy renewables

By Francesco La Camera | HK edition | Updated: 2026-03-24 07:27
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LI MIN/CHINA DAILY

Rising geopolitical tensions have made energy security a top national priority for many countries. While it is too early to fully grasp the implications for global energy markets, the current military escalation in the Middle East has once again exposed the volatility of our economies to oil and gas price shocks, underscoring the urgent need for more resilient energy architecture.

This context reinforces the role of renewable energy as a compelling source of power that can support resilience, energy independence and energy security. Decentralized, regionally integrated energy systems grounded in renewables offer greater predictability, reducing exposure to volatile fossil fuel prices and import dependence.

Experience shows that periods of disruption tend to reinforce, rather than weaken, the strategic value of renewable energy systems. During the COVID-19 pandemic, for example, while many sectors experienced slowdowns, renewable energy deployment continued to expand.

It is time for countries to strengthen their renewable energy strategies, not only for climate action, but because renewables are the most resilient and no-regret economic pathway for development, security, decarbonization, and competitiveness.

Today, the market has made its choice, with 92 percent of newly installed power capacity being renewable according to data of the International Renewable Energy Agency (IRENA). And even amid global uncertainty, we are heading toward another record, with almost 700 gigawatt of new renewable capacity expected in 2025.

No doubt, renewable energy has become the most cost-competitive option for new power generation in many markets, outperforming fossil fuel alternatives on cost, stability, and long-term value. In the near term, new investments in renewables and energy storage are expected to be more economical than maintaining aging coal-fired power plants.

However, progress remains uneven. Deployment and investment continue to be concentrated in China, other Asian economies and advanced economies with access to sufficient and affordable capital. Many developing countries remain heavily reliant on international support and continue to face financing gaps.

Multilateral and bilateral development finance institution funding must therefore increase urgently in developing countries. At the same time, this funding needs to be better targeted to address the systemic barriers that limit access to affordable private capital. Public finance can play a catalytic role by reducing risk, improving investment conditions, and mobilizing private investment, which continues to account for the majority of global renewable energy financing.

The main barriers are well known. They include the need to modernize and expand transition infrastructure, particularly electricity grids; the need to establish regulatory frameworks and market designs that are fit for high shares of renewable energy; and the need to strengthen institutional capacity and human resources to support planning, implementation, and system operation.

At a time when trust in multilateralism is being tested, international cooperation is essential to address these barriers. This is why the IRENA is supporting a new country-led regional partnership model focused on coordinated delivery. Accelerated renewable energy partnerships in Africa, Central Asia, Southeast Asia and Latin America are designed to align policy ambition with robust energy planning to reduce risk, connect project developers with international financiers, and mobilize public and private stakeholders around key national priorities.

As leaders gather in Hainan for the Boao Forum for Asia Annual Conference 2026, current challenges underscore the need for stronger action. Enhanced cooperation, targeted finance, and partnership-based approaches can support the deployment of renewable energy at the scale and speed needed to meet climate objectives while strengthening energy security and long-term economic resilience.

The competitiveness of tomorrow's economies will be largely determined by their ability to move electrons and molecules at the lowest possible cost, and to deliver clean, safe, and affordable energy services. Fast movers will gain lasting productivity and competitive advantages over those who hesitate.

The author is the director-general of the International Renewable Energy Agency (IRENA).

The views don't necessarily reflect those of China Daily.

If you have a specific expertise, or would like to share your thought about our stories, then send us your writings at opinion@chinadaily.com.cn, and comment@chinadaily.com.cn.

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