The speed at which we decarbonize and grow the electricity sector to satisfy increasing demand will critically influence our ability to limit global warming to 1.5°C. Renewable electricity is the main lever to decarbonize electricity consumption. Today, renewables are reliable and cost-competitive compared to conventional generation sources. Our work brings together leading companies representing the full renewable electricity value chain to accelerate the deployment of renewables and the transition to a low-carbon electricity system.
Although renewable electricity accounted for 29% of global electricity generation in 2021, we need to accelerate progress to meet the rising electricity demand caused by electrification of energy end-uses and increasing access to energy. The main challenges today are supply chain constraints, regulatory barriers for infrastructure, and effectively integrating growing proportions of renewables into grids and electricity markets.
The costs of renewable technologies have decreased to competitive levels, while technological and market advances are helping to overcome the challenges of variable generation patterns. This makes renewables a profitable investment opportunity. Building and operating renewable projects is a profitable and sustainable business model for investors, developers, utilities and consumers alike.
Members in this project share the ambition to scale up renewable deployment beyond average growth to achieve 3.5 terawatts of capacity by 2025. Building on our previous work on renewable finance, market structures and low-carbon microgrids, REscale has two ongoing workstreams: