Global additions of renewable energy capacity are expected to rise by a third this year, the International Energy Agency (IEA) said on Thursday, as aggressive government policies and energy security concerns lead to more clean energy deployments.
Additions of renewable energy worldwide are set to jump by 107 gigawatts, the largest absolute increase ever, to more than 440 gigawatts in 2023, the International Energy Agency said in its updated Renewable Energy Market Report.
Next year, the total global renewable electricity capacity is expected to rise to 4,500 GW, equivalent to the total energy production of China and the United States combined.
“Solar and wind power are driving the rapid expansion of the new global energy economy,” said Fatih Birol, Executive Director of the International Energy Agency.
“This year, the world is set to add a record number of renewable energy systems – more than the total energy capacity of Germany and Spain combined.”
In Europe, renewable energy growth is at the heart of the bloc’s response to the energy crisis. The new policy measures also help drive large capacity increases in the US and India over the next two years.
China is also expected to account for nearly 55% of global additions of renewable energy capacity in 2023 and 2024, the IEA said.
Solar PV additions will account for two-thirds of the increase this year and are expected to continue to grow in 2024. Rising electricity prices are driving the faster growth of rooftop solar PV, the report said.
Wind power additions are expected to grow approximately 70% in 2023 year over year due to project completions that have been delayed by COVID restrictions in China and supply chain issues in the US and Europe.
However, further growth in 2024 will depend on whether governments can provide greater policy support to address challenges in terms of permitting and capacity auction design, the report added.
Although the competitiveness of wind and solar PV has improved since last year, underwriting in renewable energy auctions was less than 16% in 2022.
More investment is also needed in grid development to integrate greater amounts of renewable energy into energy systems.
Rial