Renewable energy capacity globally will experience its largest annual increase ever in 2023, with more dramatic growth expected in 2024, the International Energy Agency said in a report released Thursday.
Driven partly by energy security concerns and solar and wind development in China, renewable energy capacity will grow by a third this year, adding 107 gigawatts to reach 440 GW, more than the total power capacity of Germany and Spain combined, IEA Executive Director Fatih Birol said in a news release.
Other contributing factors for the growth include government support and renewables' increased competitiveness against fossil fuels, the IEA's Renewable Energy Market Update said.
By 2024, the world's total renewable electricity capacity should reach 4,500 GW, equal to the total power output of China and the U.S. combined, the report said.
In Europe the forecast for additional renewable capacity was increased 40% from before the Russian invasion of Ukraine, which led many countries to boost solar and wind capacity and reduce reliance on Russian natural gas. Other factors were high electricity prices that made small-scale solar photovoltaic systems more financially attractive and increased policy support in key European markets, especially Germany, Italy and the Netherlands, the report said.
"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," Mr. Birol said in the news release.
Policy changes in the U.S. and India will contribute to significant increases in capacity over the next two years, while China is expected to account for nearly 55% of global additions this year and next, the IEA said.
Solar photovoltaic production capacity should double by 2024, led by China and increasing supply diversification in the U.S., Europe and India. If that trend holds, "the world will have enough solar PV manufacturing capacity in 2030 to comfortably meet the level of annual demand" under the IEA's 2050 net-zero emissions scenario, the report said.
Additional wind power should "rebound sharply in 2023" after sluggish growth the past two years, mainly due to completion of projects delayed by COVID-19 restrictions and supply chain issues, but further growth in 2024 "will depend on whether governments can provide greater policy support to address challenges in terms of permitting and auction design," the IEA report said.
