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The global energy transition is entering a new phase as governments and industries increase focus on electrification, renewable energy, and reducing fossil fuel dependence. A new report from International Renewable Energy Agency (IRENA) says electricity could account for 35% of global energy consumption by 2035, compared with 23% today.

The report, released ahead of the Copenhagen Climate Ministerial and in collaboration with the Brazilian COP30 Presidency, highlights growing concerns over energy security, fossil fuel price volatility, and rising global electricity demand. The study says current energy systems remain unprepared to meet the global 1.5 degrees Celsius climate target under the Paris Agreement.

Renewable Energy Expansion Becomes Central Strategy

According to IRENA’s revised 1.5°C roadmap, renewable energy and electrification must expand together to reduce global fossil fuel use. The report projects fossil fuels could decline from nearly 80% of total energy use today to around 50% by 2035. By 2050, the share may fall below 20%.

The report says rising electricity demand from transport, manufacturing, buildings, and digital services will drive the transition. Renewable sources are expected to meet most of this demand growth.

IRENA Director-General Francesco La Camera said electrification could support climate goals, strengthen energy security, and create new industrial opportunities. He added that lower-cost renewable electricity may also help reduce energy costs for households and businesses.

Grid Investment And Infrastructure Challenges Grow

The report identifies electricity grids as a major challenge for the energy transition. Around 2,500 gigawatts of solar and wind projects are reportedly waiting for grid connections worldwide.

IRENA estimates annual global grid investment must rise to about USD 1.2 trillion, more than double 2025 investment levels. Additional spending will also be needed for battery storage, hydrogen supply chains, electric vehicle charging networks, and energy-efficient buildings.

COP30 Discussions Expected To Shape Next Targets

The report supports global efforts launched after the UAE Consensus at COP28, which called for tripling renewable energy capacity and doubling energy efficiency improvements by 2030. Policymakers are expected to discuss new electrification and grid targets during upcoming COP30 and COP31 climate meetings.