The International Renewable Energy Agency has released a new policy advisory on April 13, 2026 highlighting how renewable energy is playing a critical role to strengthening energy security during ongoing conflicts in global markets. The report outlines immediate and long-standing strategies for governments to reduce dependence on fossil fuels and build resilient energy systems.

Rising Renewable Capacity Signals Structural Shift

Renewable energy capacity continues to expand rapidly worldwide according to the advisory. In 2025 alone, 692 gigawatts (GW) of new renewable power capacity were added. Countries such as Spain, Portugal, China, and India are gradually reducing their reliance on fossil fuels which are imported by investing in domestic renewable sources.

One of the reasons for this fundamental shift is its low cost. Since 2010, solar power costs have been reduced by 87%, onshore wind by 55%, and battery storage by 93%. As per the report, more than 85% of new renewable projects are now more profitable than fossil fuel alternatives. Additionally, hybrid systems combining solar or wind with battery storage are also providing continuous power at competitive prices.

Policy Measures Target Immediate and Mid-Term Stability

As per the report, policymakers are recommended to take fast action. These include expanding distributed renewable systems, promoting energy-saving campaigns, and announcing time-of-use electricity tariffs. Financial tools such as subsidies, grants, and tax incentives are also recommended to fast-track electrification across sectors.

In emerging economies, the report highlights scaling up solar mini-grids in remote areas and promoting electric mobility, including two- and three-wheelers. In order to reduce fuel demand, public transport electrification and carpooling incentives are also highlighted as effective measures.

Mid-term strategies focus on accelerating grid infrastructure, increasing battery storage capacity, and adapting policies to inflation and supply chain challenges. The objective of these steps is to improve the flexibility and reliability of the energy system.

Long-Term Planning Key to Energy Security and Economic Stability

The advisory emphasizes the need for clear policy frameworks to attract investment and support long-term energy planning. Key steps are to integrate electrification into national strategies and strengthen domestic supply chains.