In 2023, global renewable energy capacity surged, led by China in solar PV installations.
The total capacity reached nearly 510 GW, a 50% increase from the previous year and a 22-year consecutive record. Europe, the United States, and Brazil also saw significant growth. China’s progress was exceptional, commissioning as much solar PV capacity in one year as the entire world did in 2022, with a 66% increase in wind power additions.
This growth is crucial for the COP28 goal to triple global renewable capacity by 2030, which requires strong policy implementation and addressing challenges like policy uncertainties, grid infrastructure investment, administrative barriers, and financing in emerging economies. Overcoming these challenges could lead to 21% higher growth in renewable energy.
The G20 countries, accounting for 90% of global renewable power capacity, are pivotal. Enhanced policy implementation could help them triple their capacity by 2030, contributing significantly to the global target. By 2028, renewable energy sources, especially solar PV and wind, are expected to make up over 42% of global electricity generation.
China’s role in renewable energy is crucial, as it is on track to meet its 2030 wind and solar PV targets six years ahead of schedule.
The United States, European Union, India, and Brazil are also growing rapidly in solar PV and onshore wind due to favorable policies and economic factors.
However, challenges remain. The IEA’s recently published Renewables 2023 report highlighted the impact of the new macroeconomic environment on financing and expansion, calling for improved auction designs and policy adjustments to navigate higher interest rates and inflation. The renewable energy industry, particularly wind, faces financial health challenges that require strategic actions for competitiveness and growth.
Biofuel deployment, especially renewable diesel and biojet fuel, is diversifying and accelerating, led by emerging economies. Biofuels and electric vehicles are essential for reducing oil demand and achieving net-zero emissions targets.
while 2023 saw significant growth in renewable energy capacity, reaching the COP28 goal requires collaborative efforts from governments, industry, and the international community to address policy, financial, and infrastructural challenges. The transformation of the global energy landscape highlights the potential of renewables to meet sustainable energy needs, provided deployment and policy support are accelerated.