According to the International Energy Agency, the growth of renewable energy capacity in 2023 was the fastest in the past 20 years. This could help the world reach a major climate goal by the end the decade.
According to the IEA, renewable energy capacity in the world increased by 50% in the past year, reaching 510 gigawatts in 2023. This is the 22nd consecutive year that the addition of renewable capacity has set a record.
The “spectacular growth” offers a “real opportunity” for global governments to meet a pledge made at the COP28 climate talk in November, to triple renewable energy capacities by 2030 and to reduce fossil fuel consumption significantly.
The graph below shows how much electricity different renewables have contributed.
According to the IEA’s latest report, solar power accounted three-quarters for all new renewable energy installed globally last year. The majority of new solar energy was installed in China. This country installed more solar power in 2018 than the rest of the world combined, despite reducing subsidies in 2020-2021.
The IEA stated that record growth rates in Europe, Brazil, and the US have placed renewables on a path to surpass coal as the leading source of electricity generation globally by 2025. The IEA predicts that by 2028 renewable energy sources will make up more than 42% global electricity production.
Five main climate goals are being set to stop runaway global warming. These include doubling energy efficiency and cutting methane emission.
Fatih Birol is the executive director of the IEA. He said, “It is excellent to see the historic and spectacular growth in renewable energy.” However, he added, while the report indicates that the global renewable capacity will increase by more than twice by 2030, this is still not expected to meet the Cop28 target of tripling renewables.
Birol stated, “We are not there but we’re still not a thousand miles away.” “Governments have the tools to close the gap.”
Birol has downplayed fears that the rapid rise in costs for wind developers across the US and Europe would be a hindrance to the long-term growth of the industry. Higher interest rates and costs of supply chains have forced some developers to cancel large offshore wind projects and raised concern over the future technology.
“I’d be careful not to confuse the cyclical rise in costs with the structural rise in costs.” As the cyclical cost of today begins to diminish, Birol stated that costs will continue to fall in the industry.
The IEA stated that emerging and developing economies would face challenges in accessing finance. They will also need to strengthen governance and create robust regulatory frameworks, which are essential for reducing investor risks and attracting investment. This may include establishing targets and policies where none exist.
The most important challenge that faces the international community, according to me, is the rapid scaling up of financing and deployment for renewables in many emerging and developing countries, which are left behind by the new energy industry. This will determine whether or not we reach our tripling target,” Birol said.