IRENA expects fewer new renewable power installations in 2026 amid grid bottlenecks

In 2026, the world is likely to install less new renewable electricity-generating capacitythan in 2025. Annual additions could therefore decline for the first time after five consecutive years of acceleration. Francesco La Camera, director-general of the International Renewable Energy Agency (IRENA), made this forecast in an interview with Reuters on 27 October.

La Camera spoke at Singapore International Energy Week. He said the main issue is not simply building new solar and wind plants, but whether electricity grids can receive, transmit and distribute the power they produce. Trade barriers are also slowing development.

The record year of 2025 provides a high benchmark. According to the figures cited by Reuters, global renewable power capacity, including hydropower, increased by 692 gigawatts, or 15.5%, to a total of 5,149 gigawatts. These figures refer to installed generation capacity, not the amount of electricity actually produced.

China, the largest producer of renewable electricity, is a key factor. Some potential generation has to be curtailed because the grid cannot absorb all available power at certain times. Similar constraints affect countries including Australia and Japan.

The IRENA chief believes expansion elsewhere is unlikely to offset the slowdown in China. However, he did not give a specific numerical forecast for new capacity additions in 2026. His remarks are an assessment as of late October, not final annual statistics.

The expected slowdown raises questions about investment in electricity transmission, storage and flexibility. Without sufficient grid capacity, some new renewable plants cannot operate at full potential even after they are built.

Source: Reuters, 27 October 2026 — interview with IRENA Director-General.

Illustrative photograph: wind turbines in the United States, Chris Light / Wikimedia Commons, licensed under CC BY-SA 4.0. Taken on 22 April 2025; the image is not from the forum in Singapore.