Different paths, but a common goal

Davos—the World Economic Forum’s annual meeting—is in full swing through January 20. All this week, our daily charts will focus on some of the key themes of the event, including resilience, sustainability, reimagining globalization, inclusion, and space. For more, see “McKinsey and the World Economic Forum 2023.”

To get the energy transition on track—and fend off the worst effects of climate change—renewables need to scale up globally. Annual solar and wind installed capacity will need to nearly triple, from approximately 180 gigawatts (GW) of average yearly installed capacity in 2016–21 to more than 520 GW by 2030, according to senior partners Daniel Pacthod, Hamid Samandari, and Humayun Tai and coauthors. Different accelerations are needed across global regions.

The acceleration in renewable-energy installations required to achieve commitments varies among regions.

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The exhibit shows two graphs, each displaying individual installed capacity for both solar and wind energy, by major countries or regions. The graphs display time periods of 2016 to 2021 and for the future, demonstrating the estimated goal requirements to achieve the countries’ and regions’ energy commitments from 2021 to 2030. These are shown as plotted points on an axis, with each country or region that is represented also having the commitment expressed as a multiple in each case. Africa, India, and the Middle East have the biggest challenge in switching to solar energy, and in switching to wind energy.

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To read the report, see “The energy transition: A region-by-region agenda for near-term action,” December 15, 2022.