2023 will be a record year for renewables around the world
The energy crisis spurred the rapid advancement of renewable energy sources in numerous nations. As per the IEA report, we are currently witnessing the swiftest expansion of overall installed capacity for Renewable Energy Sources (RES) in recorded history. This growth is anticipated to be primarily driven by the proliferation of photovoltaic and wind energy technologies.
Anticipated is a noteworthy increase of about one-third in the installed capacity of renewable energy sources, driven by a combination of factors including crisis response, energy security considerations, and escalating fossil fuel costs.
This year is poised to witness a remarkable global RES capacity surge of 107 GW, marking the most substantial growth to date. The cumulative installed capacity of renewable energy sources is projected to surpass the 440 GW mark. The momentum of growth is expected to persist into the following year.
Notable growth is attributed to strategic policy initiatives in the United States and India, expected to yield concrete outcomes within the next two years. Additionally, China is solidifying its dominant position, contributing nearly 55% of the global growth in renewable energy for both 2023 and 2024.
Approximately two-thirds of this expansion can be attributed to photovoltaics (PV). Escalating electricity costs are accelerating the deployment of rooftop PV systems in households, while significant industrial installations are keeping pace with this growth trajectory.
Forced acceleration of RES development
The projection for the rise in installed capacity of renewable energy sources has undergone a substantial shift following the Russian invasion of Ukraine. European nations have chosen to intensify the adoption of solar and wind energy as a strategic move towards reducing dependence on Russian natural gas. Consequently, estimates regarding the global surge in installed renewable energy capacity have been revised upwards by 40%.
Recent installations of solar and wind power facilities are calculated to have resulted in €100 billion in savings for electricity consumers across the EU between 2021 and 2023. The absence of Renewable Energy Sources (RES) would have translated to wholesale electricity prices in Europe being approximately 8% higher in 2022.