Moving towards the development of these sources of energy has turned into a vital issue. The head of the International Energy Agency (IEA) has announced that the era of fossil fuels is coming to an end in the current decade. Iran has stepped into this path in parallel with the entire world. President Masoud Pezeshkian recently said Iran would have no option but to exploit renewables.
Why Are Renewables Vital?
Fossil fuels have traditionally made the highest contribution to energy supply. Unbridled and daily growing use of fossil energy carriers like oil, gas, and coal draw the attention of world nations to the exhaustibility of fossil fuels and environmental pollution. That explains why countries are moving towards renewables and a fundamental change is expected in the global energy outlook. According to the IEA’s 2024 statistics, about $770 billion was invested in renewables-fired power plants, $450 billion in developing renewable energy transmission lines and storage, $670 billion in energy efficiency projects, $80 billion in nuclear energy development, and $30 billion in clean fuel development like biomass fuels in 2024.
In addition to the limited amount of fossil fuels in the world, one of the main reasons for the shift to renewable energy is to combat climate change. Fossil fuels produce large amounts of GHG, such as carbon dioxide, which causes global warming and climate change.However, renewable energies, unlike fossil fuels, do not emit these types of pollutants and can play an effective role in reducing GHG emissions. On the other hand, since a limited number of countries have fossil fuel reserves, the use of renewable energies, including solar and wind, can contribute to countries’ energy security and reduce dependence on energy imports or limited resources.
Many countries, especially countries like Iran that are located in dry and sunny areas or areas with strong winds, have high potential for solar and wind energy production. These resources are easily exploited and can become a sustainable solution for energy supply. Furthermore, the use of fossil fuels, due to the increase in global population, causes severe air pollution, which can cause health problems, respiratory diseases, heart conditions, and cancers.
What Countries Are Investing in Renewables?
The importance of renewable energy development has led many countries to invest heavily in solar energy projects and increase the share of renewable energy in their energy mix. Accordingly, studies indicate that currently seven countries – Albania, Bhutan, Nepal, Paraguay, Iceland, Ethiopia, and the Democratic Republic of Congo –depend 100% onrenewables in their electricity generation.
Several countries across the Middle East are also investing in large-scale solar projects, with the country’s abundant sunlight providing a large amount of clean energy. The Omani government aims to increase the share of renewable energy in its energy mix to 30% by 2030, 60 to 70% by 2040, and 100% by 2050.
In the United Arab Emirates, Dubai’s Clean Energy Strategy 2050 sets a target of 75% clean energy by 2050, and Abu Dhabi’s Vision 2030 targets 30% renewable energy generation within the next five years. In January, the government inaugurated Masdar Renewable Energy Company’s 24-hour solar power facility, which includes 5.2GW of solar capacity and 19GWh of battery storage.
Qatar Energy announced in September that it plans to build a 2GW solar power plant in Qatar, which could double the country’s solar capacity by the end of the decade. The state-owned oil company plans to build the facility in Qatar’s Dukhan region. Qatar Energy and Total Energy are set to launch their first 800MW solar power plant in 2022. Qatar Energy intends to develop two more projects in Mesaieed Industrial City (MIC) and Ras Laffan Industrial City (RLIC) with atotal capacity of 875MW. Qatar’s planned increase in solar capacity to 4GW by 2030 will meet about 30 percent of the country’s electricity generation needs.
Last year, two major Chinese solar equipment manufacturers built plants worth $3 billion in Saudi Arabia, highlighting efforts to globalize their production bases as they face margin pressures at home.
Jinko Solar Co. and TCL Zhonghuan Renewable Energy Technology Co. signed deals with the Saudi Public Investment Fund (PIF).
In addition to countries in the Middle East, countries in Asia, Europe, and the United States are also on the path to developing renewable energy. According to the European Environment Agency (EEA), renewables accounted for 23% of the European Union’s energy in 2022, up from 21.9% the year before due to increased solar energy use. In general, renewable energy sources in this region include wind energy, solar energy, hydropower, tidal power, geothermal energy, ambient heat absorbed by heat pumps, biofuels, and renewable energy obtained from waste.
Accordingly, China is the undisputed leader in solar energy, with the largest installed solar capacity in the world. In 2023, China’s solar energy capacity will exceed 400GW, more than double the capacity of the next leading country.
India has also emerged as a global leader in solar power with over 70GW of installed capacity. Japan is also a global leader in solar power with around 75GW of installed capacity. Japan continues to expand its solar infrastructure and aims to achieve carbon neutrality by 2050. South Korea, with over 20GW of installed solar capacity, is increasingly relying on solar power to reduce carbon emissions and reduce its dependence on nuclear and coal power.
The US also continues to expand its solar infrastructure, with more than 130GW of solar capacity; states such as California, Texas, and Florida are leading the way in solar adoption, and California alone accounts for a significant portion of the country’s solar capacity.
Renewables in Iran
Although Iran is not currently among the leading countries in solar energy, it is making extensive plans to develop renewable energy. Iran has tremendous potential for solar energy due to its geographical location.According to statistics published at the end of 2023, Iran has 1,150MW of renewable power plants, of which 33% are wind turbines, 56% solar panels, 9% hydropower (small-scale), and 2% other renewable sources. Meanwhile, about 13,000 small-scale solar panel units installed on the roofs of residential, office, and industrial buildings have been registered throughout the country.
Iran aims to develop renewable energies. President Pezeshkian recently said Iran would have no option but to exploit renewables. The 14th administration plans to be able to generate 30,000MW of renewable power next year. Iran’s energy minister has said the installed capacity for renewable electricity in Iran has exceeded 1,500MW, which is expected to rise to 1,800MW soon. Over five years, Iran’s installed renewable power generation would have reached 50,000MW. Iran plans to invest $5 billion in renewables.
High Demand for Renewables
Global demand for energy is expected to rise in parallel with demographic growth, industrialization, and the spread of sophisticated technologies like AI. As climate change gets worse, demand for electricity rises for both cooling and heating. That has come against the backdrop of the emergence of the middle class in many emerging economies, which would increase demand for air conditioning systems.
Global growth in several sectors and the push for decarbonization are expected to contribute to a sharp increase in demand for renewable energy in the coming decades. As demand increases, governments across the world are working to expand their renewable energy capacity to support the transition away from fossil fuels.
Pouneh Torabi
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