Solar, wind capacity growth slowed last year: Analysis – Latest News

Global momentum for new solar and wind projects lost steam last year, raising fresh doubts about meeting the international pledge to triple renewable power capacity by 2030. A review of project announcements and construction starts shows the pipeline expanded by just 11 percent in 2025—barely half the pace seen the year before—driven largely by setbacks in wind development across affluent economies.

Countries committed in 2023 to dramatically scale up renewables this decade as a cornerstone of keeping global temperature rise in check. Yet the latest figures suggest that the buildout is lagging, particularly in markets where permitting hurdles, policy reversals, and repeated failures in wind power auctions have chilled investor appetite. In the United States, for example, federal obstruction of certain wind projects and open hostility toward renewables have compounded the sector’s headwinds, though analysts stress the slowdown cannot be pinned on any single nation.

One striking shift is geographic: high-income G7 economies contributed only a modest share of last year’s wind and solar pipeline growth, while emerging and developing countries took the lead. This rebalancing underscores where the fastest on-the-ground expansion is now happening—and where policy stability and grid investment may yield the biggest near-term gains.

China continues to dwarf all other markets. Its 2025 additions accounted for roughly a third of global capacity growth—about 1.5 terawatts—surpassing the combined increase of the next six countries. Even so, the world is still not on a trajectory consistent with tripling overall renewable capacity by 2030.

Pipeline size alone won’t guarantee delivery. Even if every announced and under-construction project moves forward, the global tally would still fall short of what’s needed by decade’s end. Historically, nearly 40 percent of planned projects miss their initial start dates, get shelved, or are cancelled outright. The reasons vary, from auction designs that fail to attract bidders to evolving political priorities and local opposition that slow permitting or raise costs.

The implications are clear. To regain momentum, governments and regulators must reduce policy volatility, streamline approvals, and structure auctions and power contracts that reflect real-world inflation, financing costs, and supply chain constraints. Strengthening transmission grids and clarifying land-use rules—especially for wind—can also unlock stalled capacity. Meanwhile, ensuring that financing reaches fast-growing emerging markets will be pivotal, as these economies now anchor much of the world’s renewable expansion.

The past year’s slowdown is a warning, not a verdict. Matching the 2030 ambition will require consistently higher annual growth rates than those seen in 2025, alongside fewer project delays and cancellations. Without a course correction, the gap between targets and reality will widen—jeopardizing climate goals and missing an opportunity to secure cheaper, cleaner power for the decade ahead.