Renewable energy has emerged as the world’s leading source of new power generation capacity in 2026, marking a decisive shift in how countries plan, finance, and secure their energy futures. Solar, wind, and energy storage technologies now dominate new electricity investments across developed and emerging economies.

A Global Shift in Power Investment

Across Europe, North America, Asia, and the Middle East, new utility-scale solar and wind projects are being commissioned faster than fossil fuel-based alternatives. Declining technology costs, shorter construction timelines, and long-term price stability have made renewables the preferred choice for governments and utilities.

This shift reflects a structural change in global energy markets, where capital is increasingly flowing toward low-risk, low-operating-cost generation assets.

Emerging Economies Drive Growth Momentum

While advanced economies continue to expand clean energy capacity, emerging markets are now responsible for the largest share of new renewable installations. Countries in Asia, Africa, and Latin America are deploying solar and wind to meet rising electricity demand while reducing dependence on imported fuels.

For many developing nations, renewables offer a faster and more affordable pathway to energy access compared to traditional centralized power systems.

Energy Storage Strengthens Grid Reliability

The rapid growth of renewable energy has been accompanied by record deployment of energy storage systems. Battery installations and long-duration storage projects are increasingly integrated into national grid planning to manage variability and peak demand.

Utilities worldwide are using storage to defer grid upgrades, improve reliability, and reduce reliance on fossil fuel peaking plants.

Policy Alignment Accelerates Deployment

Clear policy signals, including renewable targets, storage mandates, and grid modernization programs, have helped accelerate deployment. Many governments now view renewable energy as a strategic asset for economic resilience and energy security.

International collaboration on supply chains, financing, and technology transfer is further supporting large-scale deployment.

What This Means for the Global Energy Transition

The dominance of renewables in new capacity additions signals a new phase of the energy transition, where clean energy is no longer an alternative but the default option.

As investment continues to scale, the global focus is shifting toward grid flexibility, storage, and digital energy systems to support a renewable-first power landscape.