The global solar and wind energy sectors are poised for significant growth, with developers projected to add over 5.4 terawatts (TWac) of new capacity by 2033.
This expansion, driven by electrification efforts and decarbonization targets, will bring the cumulative global capacity to 8 TWac.
Energy Storage as a Key Enabler:
Energy storage capacity, excluding pumped hydro, is anticipated to experience remarkable growth of over 600%, with nearly 1 TW of new capacity expected online within the same period. This surge in energy storage is a direct response to the increasing challenges associated with integrating renewable energy sources into the grid.
The demand for renewable energy solutions has reached unprecedented levels, fueled by country-level policy targets, technological advancements, and concerns about energy security. Integrated power technology solutions, including energy storage, will continue to evolve, playing a crucial role in making renewable power more accessible and reliable.
China’s Leading Role:
China is expected to maintain its dominance in solar, energy storage, and wind power adoption, with a forecast of 3.5 TWac to be connected to the grid between 2024 and 2033. The country’s ambitious renewable energy goals and supportive policies continue to drive significant investments in these sectors.
Solar PV is set to lead the renewable energy deployment race, accounting for 59% of the global capacity expected to come online between 2024 and 2033. Its widespread adoption is attributed to factors such as falling module prices and supportive policies, but challenges like grid constraints and fluctuating power prices may impact future growth.
Global Solar PV Expansion:
Wood Mackenzie’s global solar PV forecast predicts 4.7 TWdc (terawatts direct current) of capacity will be built between 2024 and 2033, with China leading the way, contributing to 50% of this growth. However, maximizing solar PV capacity will require further technological advancements and infrastructure development to address grid integration and other challenges.
The global energy storage market witnessed record-breaking growth in 2023, with a 162% increase compared to 2022. This momentum is expected to continue, driven by policy support, tax incentives, and the increasing need for flexible and reliable energy sources. China, with its thriving solar market, is poised to remain a global leader in energy storage.
Global Wind Power Growth:
The global wind power industry is projected to add more than 1.7 TW of capacity over the next decade. China, with its robust policy support and ambitious carbon-neutral targets, is expected to install an average of 91.5 GW annually. Challenges related to permitting, grid access, financing, and supply chain availability may impact short-term growth but are expected to be overcome in the long run.
The offshore wind sector, following a successful year in 2023, is set for significant expansion, averaging 39 GW of connected capacity annually from 2024 to 2033. China is projected to account for more than 50% of the total offshore wind capacity installed during this period. This growth highlights the increasing importance of offshore wind in the global renewable energy mix.