In an era of relentless progress, the International Energy Agency (IEA) paints an inspiring picture of a renewable future, as it projects a remarkable surge in global additions of renewable power capacity for the year 2023.
According to the IEA’s Renewable Energy Market Update, this year will witness an extraordinary increase of 107 gigawatts (GW) in global renewable capacity additions, marking it as the largest surge ever recorded. The collective renewable capacity is poised to exceed 440 GW by the end of 2023, propelled by a confluence of factors, including the unstoppable momentum of renewable policies, escalating fossil fuel prices, and mounting concerns about energy security.
The winds of change blow across major markets worldwide, heralding a new era. In Europe, renewables stand at the forefront, leading the charge in response to the energy crisis. Meanwhile, the United States and India experience significant leaps forward, driven by the implementation of forward-thinking policy measures. Notably, China’s dominance persists, contributing nearly 55 percent of global renewable power capacity additions in both 2023 and 2024.
But the journey does not end here. The surge continues, reaching its zenith in 2024, when the world’s total renewable electricity capacity is projected to scale unprecedented heights, surging to a formidable 4,500 gigawatts (GW).
“Solar and wind emerge as the vanguard, spearheading the rapid expansion of the new global energy landscape. This year, the world is poised to embrace an unparalleled surge in renewable installations—an amount surpassing the combined power capacity of Germany and Spain,” enthused Fatih Birol, Executive Director of the IEA. “The global energy crisis serves as a potent reminder that renewables are not just the key to cleaner energy supplies, but also to enhanced security and affordability. Governments across the globe are responding with intensified efforts to hasten their deployment. However, to unlock even greater growth, we must confront and overcome key challenges. Our policies need to adapt to the ever-evolving market landscape, and we must invest in the modernization and expansion of power grids, enabling us to harness the boundless potential of solar and wind power.”
The solar revolution takes center stage, poised to account for approximately two-thirds of this year’s surge in renewable power capacity. The proliferation of large-scale solar photovoltaic (PV) plants goes hand in hand with the rise of smaller-scale rooftop solar systems. The IEA report paints an optimistic future, projecting the global manufacturing capacity for all solar PV segments to more than double by 2024, reaching an impressive 1,000 GW. Such robust growth ensures that by 2030, the world will boast sufficient solar PV manufacturing capacity to comfortably meet the annual demand.
Not to be outdone, wind power stages a triumphant comeback in 2023, with an anticipated rebound of almost 70 percent. Overcoming the hurdles of the past, this resurgence primarily stems from the completion of projects hampered by Covid-19 restrictions in China and supply chain disruptions in Europe and the United States.
In the wake of Russia’s invasion of Ukraine, Europe envisions a bolder future for renewable capacity additions, revising its forecasts by a striking 40 percent. This seismic geopolitical event has catalyzed countries to intensify the adoption of solar and wind power, aiming to reduce their dependence on Russian natural gas. The installation of solar PV and wind capacity between 2021 and 2023 is estimated to have generated savings of EUR 100 billion for European electricity consumers, as they embrace a clean and cost-effective energy transition. Without the additional renewable capacity, wholesale electricity prices in 2022 would have surged by 8 percent.
As the world presses forward in its unwavering march towards a renewable future, adaptability becomes the key to unlocking further potential. Policies must continuously evolve to keep pace with the shifting market landscape, and concerted investments in upgrading and expanding power grids will ensure the full utilization of solar and wind power’s immense capabilities. With every milestone achieved, the path towards a sustainable and resilient energy landscape becomes clearer, offering a future illuminated by renewable power and promise.
