6 June 2023 – New analysis has shown that the global energy crisis has turbocharged the growth of renewable power. Renewable energy is set to become the main energy source.
To reach the 1.5°C climate target, the world has to stop using fossil fuels, because they are responsible for the majority of CO2 emissions. In 2022, 91% of carbon emissions came from fossil fuels, according to Carbon Brief.
Energy production is a major player in the use of fossil fuels. And while the use of coal and gas is still at a high level, especially in Asia, analysis by the International Energy Agency (IEA) suggests that renewable energy is on track to become the top energy source.
The main driver for this surge in growth is the global energy crisis as well as relevant policies being implemented in many countries.
Solar Energy Leads Growth
The IEA’s Renewable Energy Market Update Report was released this month, and it shows that the trend is positive.
The capacity of renewable energy worldwide is set to increase by 107 gigawatts (GW), which is a record. As a result, in 2023 it is estimated that green energy growth will increase by 440 GW.
Two-thirds of the growth this year is down to solar power. This increase has been driven by many countries looking to improve energy security as a response to the energy crisis caused by Russia’s invasion of Ukraine.
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.
Faith Birol, Executive Director of the IEA
Especially in Europe, alternatives to imported fossil fuels have been sought. Because solar panels can be installed quickly, for residential as well as commercial systems, it became the main green energy source.
In the UK, the government has removed VAT from solar panels as an incentive for people to install them.
Half of this year’s increase in the capacity of solar energy comes from these smaller solar PV installations. And the IEA anticipates that the growth of solar PV will further increase in 2024, due to higher demand, lower costs and a push by many countries to build large-scale deployments.
Wind Power Is Lagging Behind
While the growth of onshore wind capacity is lagging behind solar, it will grow by 70% to 107 GW in 2023, according to the IEA. In the past two years, wind power growth declined due to delayed projects.
COVID-19 restrictions in China have meant that projects couldn’t get commissioned as planned. In the US and Europe, supply chain issues delayed wind power projects. But these will now be commissioned this year, hence the increase in growth.
Growth in offshore wind capacity won’t reach the record highs from 2021, because there aren’t many projects carried out outside of China. China is on course to increase its wind energy growth in 2024.
However, due to lacking policies and permit delays in Europe, global onshore wind energy growth is expected to fall by 5% in 2024. However, legislation is expected to be implemented in Europe, which means the situation should improve.
Global Renewable Energy Capacity To Top 4,500 GW
In 2023, global additions to renewable energy capacity is set to reach 440 GW. In 2024, the world is forecast to achieve 550 GW of additional green energy capacity.
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.
Faith Birol, Executive Director of the IEA
The IEA report expects that the global renewable energy capacity will exceed 4,500 GW by the end of 2024, which is equal to the combined power capacity of China and the US.
This expansion is mostly due to the pace at which residential and commercial solar PV systems are installed. However, the report does assume that recent policies and incentives are implemented faster.
While the EU has sped up the installation of renewables due to the energy crisis caused by Russia’s invasion, China is set to top the list of most renewable capacity installations this year and next.
China is supercharging its growth of green energy capacity. In 2022, it was responsible for almost half of all additions. But in 2024, the IEA estimates that China’s share will increase to 55%.
This includes almost 70% of all new offshore wind projects, more than 60% of new onshore wind projects and 50% of all solar PV installations. The US is expected to increase its capacity additions for wind and solar by 40% in 2023.
This acceleration in renewable energy projects worldwide is great news for the environment, as it will help to reduce global carbon emissions.
