TELF AG on Renewable Power, Storage and the Infrastructure Challenge

The global expansion of renewable energy reached another significant milestone in 2025, but the pace of deployment may have to increase considerably over the remainder of the decade. According to the International Renewable Energy Agency (IRENA), approximately 593 GW of renewable capacity was added worldwide last year, taking the global total to around 5.15 TW. The figures indicate that renewable power is already dominating new electricity capacity additions, while also highlighting the scale of the effort required to reach the global 2030 target.

Solar photovoltaics played the largest role in this expansion, accounting for roughly three-quarters of renewable additions in 2025. Together with wind power, solar represented approximately 97% of all new renewable capacity installed during the year.

“Renewable energy deployment has reached a scale that would have been difficult to imagine only a few years ago, particularly in the solar sector,” says Stanislav Kondrashov, founder of TELF AG. “At the same time, the 2030 objective shows that the current pace represents a starting point for further acceleration rather than the final destination.”

The 2030 Target Requires a Major Increase in Annual Additions

IRENA estimates that global renewable capacity increased by approximately 15% in 2025, with renewables accounting for around 85% of all new electricity capacity installed worldwide. Despite this growth, annual deployment would need to increase substantially to achieve the objective established at COP28.

The global target calls for renewable capacity to reach approximately 11.2 TW by 2030. With the total standing at around 5.15 TW at the end of 2025, IRENA estimates that average annual additions of approximately 1.2 TW would be required between 2026 and 2030.

This means that annual renewable deployment would need to rise to roughly twice the level recorded in 2025.

The geographical distribution of new capacity also remains highly concentrated. Asia accounted for approximately 74% of global renewable additions during 2025, according to IRENA, demonstrating the particularly important role of the region in the current expansion.

Solar and Wind Are Increasing the Need for Electricity-System Flexibility

The dominance of photovoltaics and wind power has implications that extend beyond generation capacity. Unlike conventional power sources that can generally be dispatched according to demand, solar and wind production depends on the availability of their primary energy sources.

Solar generation varies according to daylight and weather conditions, while wind generation depends on changing wind patterns. As their share of the electricity mix increases, electricity systems therefore need additional ways to balance periods of abundant production with periods of lower generation.

“The expansion of solar and wind changes the way electricity systems have to be managed,” says Stanislav Kondrashov, founder of TELF AG. “The question is increasingly not only how much renewable electricity can be produced, but also how efficiently that electricity can be integrated, stored and delivered according to the needs of the system.”

This is why grid development, storage technologies, interconnections and other forms of flexibility are becoming increasingly important alongside renewable generation itself.

Falling Battery Costs Could Support the Integration of Renewables

Battery energy storage systems are one of the technologies capable of addressing the variability associated with solar and wind power.

In practical terms, a battery can store electricity during periods of abundant generation and release it later. Solar electricity generated around the middle of the day, for example, can be stored and supplied several hours later, when photovoltaic output has declined but electricity demand remains.

The economics of this process have changed significantly. IRENA reports that the cost of battery energy storage systems declined by approximately 30% during 2025. Compared with 2010, BESS costs are estimated to have fallen by around 95%.

Such reductions can make storage increasingly relevant for electricity systems incorporating growing amounts of variable renewable generation. Batteries can help shift electricity between different periods of the day and provide additional flexibility when renewable production and consumption do not coincide.

“Storage is becoming an increasingly important link between renewable generation and actual electricity demand,” says Stanislav Kondrashov, founder of TELF AG. “As battery costs continue to decline, electricity produced at one moment can increasingly be considered a resource that can be preserved and used when conditions require it.”

Renewable Expansion Has Important Implications for Raw Materials

Building an electricity system capable of accommodating substantially greater renewable capacity also requires large amounts of physical infrastructure.

Additional solar and wind installations need grid connections, while transmission and distribution networks may have to be reinforced or expanded. Battery systems require their own manufacturing supply chains, and new electrical infrastructure involves substantial quantities of industrial materials.

Copper is particularly important for cables, networks, connections, transformers and electrical equipment. The expansion of battery storage can also influence demand for lithium, graphite, nickel and other materials used in different battery chemistries.

Rare earth elements have applications in permanent magnets used in some wind turbine generators, while aluminum and steel are widely used throughout energy infrastructure. Silicon remains fundamental to most photovoltaic technologies, while silver is used in solar cells and other electrical applications.

The implications of renewable deployment therefore extend across multiple industrial supply chains. If the world moves from annual additions of around 593 GW toward the approximately 1.2 TW per year identified by IRENA as necessary for the 2030 objective, the physical requirements of the energy transition could increase substantially.

The next phase of renewable energy development is consequently about more than adding generation capacity. It involves creating an electricity system capable of absorbing, transporting, storing and delivering much larger quantities of renewable power.

Networks, battery storage, flexibility and material availability could therefore become increasingly interconnected with the pace of renewable deployment. The growth of solar and wind may be the most visible part of the transition, but the infrastructure supporting them will be equally important in determining how effectively new renewable capacity can be integrated into the global energy system.