According to the latest report from the International Energy Agency (IEA), renewable energy is experiencing unprecedented growth, poised to break records this year. Solar and wind power are leading the charge, offering tremendous potential for the global energy economy. This surge is fueled by high fuel prices and a growing demand for clean alternatives amidst the global energy crisis.
The IEA’s Renewable Energy Market Update Outlook for 2023 and 2024 reveals that global additions of solar photovoltaic (PV) and wind power are set to increase by 107 gigawatts, pushing the total renewable energy capacity to an astounding 4.5 terawatts. Such capacity rivals the combined electricity output of two major nations, the United States and China.
The report emphasizes the critical role of solar and wind power in transforming the energy landscape. IEA Executive Director Fatih Birol highlights the need to address key challenges and adapt policies to leverage the full potential of renewable energy. Upgrading and expanding power grids are vital to harnessing the enormous benefits offered by solar and wind power.
Solar PV capacity, including utility-scale and distributed systems, takes the lead, accounting for two-thirds of the projected increase in renewable capacity. Policymakers in various countries, particularly in Europe, are actively seeking alternatives to imported fossil fuels to enhance energy security, spurred by higher electricity prices caused by the energy crisis. Residential and commercial solar PV systems, which can be quickly installed to meet rising demand, are expected to account for half of this year’s overall solar PV deployment.
After experiencing a decline in the past two years, onshore wind capacity is set to rebound by 70% in 2023, reaching a record-breaking 107 GW. China, Europe, and the United States will contribute to this growth, with delayed projects and supply chain challenges driving the expansion. However, the report notes that offshore wind growth may not match previous records due to the limited number of projects under construction outside of China.
Looking ahead, the report predicts continued growth in solar PV additions in 2024, supported by favorable policies and incentives. The accelerated scenario could see global renewable capacity additions reach 550 GW in 2024, nearly 20% higher than the main forecast. This reflects a faster deployment of residential and commercial PV installations.
The timing couldn’t be better for developing eco projects, as renewable energy emerges as a leading source of electricity globally. The IEA’s findings align with the global push for renewable energy targets, with the upcoming United Nations Climate Change Conference (COP28) serving as a platform for nations to discuss and strategize sustainable solutions.
At Globe Energy Group, we recognize the significance of this renewable energy boom. As part of our commitment to a greener future, we offer funding opportunities for environmentally friendly projects. Learn more and apply for funding to bring your eco project to life.
