The rise of renewables
Dramatic reduction in cost
Wind and solar dominate worldwide new electricity generation.
Wind and solar photovoltaic (PV) are expected to cover more than 90% of the increase in global electricity demand in 2025. After exceeding the 4 000 TWh mark in 2024, wind and solar PV generation combined is set to surpass 5 000 TWh in 2025 and 6 000 TWh in 2026.These figures are highlighted in the electricity mid-year update recently released by the International Energy Agency (IEA). According to its website, the IEA works with governments and industry worldwide to shape a secure and sustainable energy future for all.
However, the agency’s first analysis focused exclusively on Namibia was only launched at African Energy Week 2024 in Cape Town. Entitled Renewable Energy Opportunities for Namibia, it was endorsed by then Minister of Mines and Energy Tom Alweendo, who said at the time: “Our country is home to extraordinary resources, and it has been invaluable to assess these opportunities together with the IEA and consider how they align with our national priorities and vision.”
Regarding the latest renewable energy findings, Japanese decarbonisation solutions investment company Asuene (valued at N$954 million) said last month that 2024 marked a turning point in global energy investment. Describing it as a dramatic transformation of the global energy landscape, Asuene said it was the first time in history that renewable energy had become the dominant source of new electricity capacity worldwide.
According to the company, renewables accounted for 74% of overall power growth, with wind and solar alone delivering nearly all new capacity. “This marks a sharp acceleration from previous years and signals that clean energy has decisively overtaken fossil fuels in new generation buildout.”
Cost reduction
A key driver of this momentum, Asuene notes, is the dramatic reduction in costs. “Technological improvements, economies of scale, and competitive supply chains have pushed down prices,” the company said. Globally, solar PV is now 41% cheaper than coal or gas, while onshore wind is 53% cheaper than fossil sources. “These cost declines make renewables not just environmentally preferable but also financially superior. The global levelised cost of electricity (LCOE) for wind and solar has reached unprecedented lows, enabling countries to scale up clean energy without heavy subsidies.”
The IEA further reports that electricity generation from renewable energy sources is forecast to overtake coal-fired generation. “Depending on weather trends and economic developments, coal-fired output is expected to be surpassed by renewable generation as early as 2025, or by 2026 at the latest. Following this milestone, coal’s share in total generation will drop below 33% for the first time in a century. Solar PV and wind energy are central to this shift, with their combined share of global electricity generation forecast to grow from 15% in 2024 to 17% in 2025, reaching almost 20% by 2026 – a near fivefold increase from just 4% a decade ago.”
Global gas-fired generation is expected to increase by 1.3% in 2025, reaching a new high after growth of 1.9% in 2024, according to the agency.
Of particular interest to Namibia – ranked the second-largest uranium producer in the world by the Chamber of Mines of Namibia since June – the IEA also reported: “Global nuclear power generation is on track to reach a new record high in 2025 and will continue its upward trajectory in 2026.” This surge, it said, is driven by “plant restarts in Japan, robust output in the United States and France, and the commissioning of new reactors in China, India, Korea and several other countries”.
Global nuclear generation is expected to rise by an average of 2% over the 2025–2026 period, approaching 3 000 TWh in 2026.