Renewable power on course to shatter more records
Global additions of renewable power capacity are expected to jump by a third this year as higher fossil fuel prices and energy security concerns drive strong deployment of solar PV and wind power.
According to the latest Renewable Energy Market Update report from the International Energy Agency (IEA), this growth is set to continue next year with the world’s total renewable electricity capacity rising to 4 500 gigawatts (GW), equal to the total power output of China and the United States combined.
The global energy crisis is the catalyst for some of the largest-ever jumps in renewable capacity. Countries around the world are responding with policies that support renewable energy, with Europe, the US and China leading the way.
Newly installed solar PV and wind capacity is estimated to have saved EU electricity consumers €100 billion during 2021-2023 by displacing more expensive fossil fuel generation. Wholesale electricity prices in Europe would have been 8% higher in 2022 without the additional renewable capacity, according to the new IEA report.
Notably, the IEA’s report says that global additions to renewable capacity are set to soar by an 107 GW in 2023. This increase represents the largest absolute growth ever recorded and will push the total renewable power capacity beyond 440 GW. These dynamic developments are taking place across major markets worldwide.
Renewable energy sources are at the forefront in Europe’s response to the energy crisis, accelerating their growth in the region. In addition, new policy measures are driving significant increases in renewable power capacity in the United States and India over the next two years. China, meanwhile, is consolidating its leading position and is set to account for almost 55% of global additions of renewable power capacity in both 2023 and 2024.
China’s contribution to global renewable capacity additions is expected to increase in 2023 and 2024, consolidating its position as the undisputed leader in global deployment.
IEA executive director Fatih Birol said: “Solar and wind are leading the rapid expansion of the new global energy economy. This year, the world is set to add a record-breaking amount of renewables to electricity systems – more than the total power capacity of Germany and Spain combined. The global energy crisis has shown renewables are critical for making energy supplies not just cleaner but also more secure and affordable – and governments are responding with efforts to deploy them faster.
“But achieving stronger growth means addressing some key challenges. Policies need to adapt to changing market conditions, and we need to upgrade and expand power grids to ensure we can take full advantage of solar and wind’s huge potential.”
Solar PV additions will account for two-thirds of this year’s increase in renewable power capacity and are expected to keep growing in 2024. The expansion of large-scale solar PV plants is being accompanied by the growth of smaller systems. Higher electricity prices are stimulating faster growth of rooftop solar PV, which is empowering consumers to slash their energy bills.
At the same time, manufacturing capacity for all solar PV production segments is expected to more than double to 1,000 GW by 2024, led by China and increasing supply diversification in the United States, India and Europe. Based on those trends, the world will have enough solar PV manufacturing capacity in 2030 to comfortably meet the level of annual demand envisaged in the IEA’s Net Zero Emissions by 2050 Scenario.
