For the first time in history, zero-carbon sources will account for more than 40% of the world's electricity generation in 2023. The global transition to clean electricity has achieved important new goals and will continue at its current pace.
These conclusions and forecasts were made in two new reports – "Trends of energy transition 2024" and "Tracking investments in renewable energy for the second half of 2024" – analysts of the research company BloombergNEF (BNEF).
At the same time, hydropower accounts for 14.7%, wind and solar energy accounts for almost the same amount – 13.9%, which is a new record indicator. The share of nuclear energy was 9.4%.
The report's figures, analysts said, indicate that momentum toward clean energy has also accelerated. To confirm this thesis, they cite two comparisons:
- in 2023, wind and solar energy accounted for almost 91% of new capacity, compared to 83% a year earlier;
- at the same time, fossil fuels, including coal and gas, accounted for only 6% of new capacity, which is the lowest figure in the entire history of the industry.
Experts predict that the renewable energy industry will repeat a similar feat in 2024, as renewable energy projects attracted $313 billion in new investments in the first half of the year. This figure is comparable to the level of investments in the first half of 2023.
Global increases in net energy capacity by technology
Source: about.bnef.com.
In 2023, the total global power generation capacity reached 8.9 TW. Of these, 1 TW of installed capacity is for wind energy, which is a significant historical milestone. However, wind power's gains are overshadowing the rapid deployment of solar power, with 428 GW of new solar installed in 2023. This is 76% more than in the previous year. Currently, the total global park of solar power plants has reached 1.6 TW.
"We have seen a dramatic change in renewable energy compared to a few years ago. There is now no doubt that it is the largest source of new electricity generation, wherever you are," said Sofia Maia, lead author of the Energy Transition Trends 2024 report.
Which countries are leaders in renewable energy?
In 2023, 10 countries in the world accounted for almost three quarters of total renewable energy production. China provided almost a third of the world's renewable energy production last year. The USA, Brazil, Canada and India rounded out the top five, which last year accounted for 60% of the world's renewable energy production.
China also continues to dominate new investments in renewable energy. The US was the second largest market in the first half of 2024, with half-year investment volumes up 63% following the passage of the Deflation Act. Pakistan has surged to 5th place in terms of new solar investments, up from 14th place in the same period last year.
Global investments in renewable energy for the first half of 2024
Source: about.bnef.com.
BNEF researchers state that solar and wind energy are showing different results so far in 2024: investment in solar energy in the first half of this year remained at the level of the previous year, investment in wind energy in the first half of 2024 fell by 11% compared to the same period last year year
Investments in offshore wind energy, where investments are largely determined by government auction calendars, have declined in particular. Meanwhile, onshore wind energy faces frequent problems related to obtaining permits and connecting to power grids. Wind energy projects continue to come to fruition, but the industry is struggling to achieve the same leaps in deployment as solar energy, analysts say.
EcoPolitic recently published list of European countries , which are leaders in the construction of new wind power plants. We also wrote about what solar and wind energy have become more profitable for fossil fuels.
