Global Renewable Energy Transition Hindered By Infrastructure Bottlenecks

The global energy landscape is at a critical juncture, with vast opportunities for growth and innovation, but also significant challenges to overcome. A recent encounter between European diplomats and African energy officials highlighted the pressing need for infrastructure development to support the transition to renewable energy.

When pitched green hydrogen partnerships, African officials countered with a straightforward request: “Can you help us build a substation?” This exchange encapsulates a persistent global challenge, as Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA), noted. According to La Camera, the transition to renewable energy is often stalled not due to a lack of funding, but because the fundamental infrastructure – including grids, transmission lines, and supply chains – is not in place.

IRENA-supported projects worldwide, from Uzbekistan to Sierra Leone, illustrate this pattern. Despite significant investment in renewable energy technologies, the underlying infrastructure is often insufficient to deliver power to users. The scale of the challenge is substantial. Global investment in the energy transition reached $2. 4 trillion in 2024, with approximately one-third allocated to renewable energy technologies, as reported by Forbes. However, permitting issues, regulatory coordination, and physical infrastructure constraints hinder deployment, affecting both developing and developed countries.