Renewable energy capacity expansion increased 50% globally in 2023, IEA says
▶ China recorded the largest growth, with wind power additions rising 65 per cent on an annual basis
The rate of expansion of global renewable energy capacity increased by 50 per cent last year, with solar power accounting for three quarters of the growth, the International Energy Agency has said.
About 510 gigawatts of renewable energy capacity was added in 2023, up from 340 gigawatts in 2022, the agency’s Renewables 2023 report said.
The IEA had previously forecast a renewable capacity addition of 440 gigawatts for 2023.
China, the world’s second-largest economy, recorded the largest growth, with wind power additions rising 65 per cent on an annual basis.
Last year, the country commissioned as much solar PV (photovoltaics) as the entire world in 2022, the IEA said.
Europe, the US and Brazil also registered record growth in renewable energy capacity, the agency added.
“Under current policies and market conditions, global renewable capacity is already on course to increase by two-and-a-half times by 2030,” said Fatih Birol, the agency’s executive director.
“It’s not enough yet to reach the Cop28 goal of tripling renewables, but we’re moving closer – and governments have the tools needed to close the gap,” Mr Birol said.
At the UN climate summit last month, countries agreed to work together to triple the world’s current renewable energy generation capacity to at least 11,000 gigawatts by the end of the decade, considering different starting points and national circumstances.
Under existing policies and market conditions, global renewable power capacity is now expected to reach 7,300 gigawatts over the 2023-2028 period, with solar and wind accounting for 95 per cent of the expansion, the report said.
Renewables are also projected to overtake coal to become the largest source of global electricity generation by early 2025, the agency said.
“There are still some big hurdles to overcome, including the difficult global macroeconomic environment,” Mr Birol said.
“The most important challenge for the international community is rapidly scaling up financing and deployment of renewables in most emerging and developing economies, many of which are being left behind in the new energy economy.”
If policies related to renewable power are implemented more quickly, there could be a 21 per cent increase in clean energy capacity compared with the IEA’s baseline projection, the agency said.
That increased growth would put the world “on track” to meet the pledge of tripling the global renewable capacity, it added.
The IEA expects solar PV and onshore wind deployment to the end of 2028 to more than double in the US, EU, India and Brazil, compared with the preceding five years. Solar module prices, which nearly halved last year, will experience a further drop as manufacturing capacity reaches 1,100 gigawatts by the end of 2024, the agency said.
However, the wind industry, excluding China, is facing a challenging environment due to a combination of supply chain disruption, higher costs and lengthy permitting timelines, the agency added.
The report also said that hydrogen project announcements need to be followed by “consistent” policies supporting demand.
Of all the projects announced this decade involving the use of renewables to produce hydrogen, only 7 per cent of the proposed capacity is expected to come online by the end of the decade, the agency said.
The slow pace of projects reaching an investment decision, combined with limited appetite from off-takers, has led to slower progress on many projects, the agency said.
Biofuels, which are derived from biological sources such as plants and animal waste, grew in popularity last year.
Emerging economies, led by Brazil and India, are expected to drive 70 per cent of global demand over the next five years as biofuels begin to play a bigger role in hard-to-abate sectors such as air travel, the IEA said.
However, the deployment of the low-carbon energy source is not happening “quickly enough”, with a significant increase in demand required by 2030 to align with a net-zero pathway, the agency added.
Renewables are projected to overtake coal as the largest source of global electricity generation by early 2025