As climate change increasingly threatens global ecosystems and socio-economic stability, transitioning from fossil fuels to renewable energy sources has become a pivotal strategy for mitigating environmental degradation and promoting sustainable development. This article delves into the intricate relationship between climate change and the shift to renewable energy, encompassing solar, wind, biomass, and geothermal sources. It further examines the transformation of power systems, emphasizing the vital roles of energy storage, grid integration, and climate forecasting in establishing climate-resilient energy infrastructure to achieve sustainable development goals. Additionally, the paper evaluates global policy and regulatory frameworks, assessing the effectiveness of international agreements and national strategies in facilitating the renewable energy transition amidst climate uncertainties. The article also provides a comprehensive analysis of the key challenges facing power grids and renewable energy systems, with a focus on grid stability, energy production variability, and infrastructure resilience. Finally, the review highlights future research opportunities to identify critical areas for exploration and underscores the importance of global collaboration in addressing the profound impacts of climate change on renewable energy generation and distribution systems. This work serves as an indispensable resource for policymakers and industry experts, offering insights into the evolving dynamics of climate change and sustainable energy solutions while supporting the pursuit of sustainable development objectives.