Global Renewable Energy Capacity Reaches New High Of 3,870 GW In 2023, Says IRENA

The International Renewable Energy Agency (IRENA) unveiled its Renewable Capacity Statistics 2024, marking a significant milestone in the global shift towards renewable energy. The report reveals that 2023 witnessed a record-setting increase in renewable energy capacity, with the global total reaching 3,870 Gigawatts (GW). This surge signifies that renewables constituted 86 percent of all new power capacity. However, the distribution of this growth presents a stark disparity across different regions, highlighting a deviation from the ambitious goal of tripling renewable power by 2030.

Asia emerged as the frontrunner in this expansion, contributing 69 percent (326 GW) to the growth, predominantly led by China's impressive increase of 63 percent, culminating in a capacity of 297.6 GW. This growth starkly contrasts with other regions, notably Africa, which saw a modest rise of 4.6 percent, reaching a total capacity of 62 GW. IRENA Director-General Francesco La Camera emphasized the critical nature of this growth for aligning with the Paris Agreement's objectives. Yet, he also pointed out the insufficient pace at which progress is being made towards adding the necessary 7.2 TW of renewable power by 2030, as outlined in IRENA’s World Energy Transitions Outlook for a 1.5°C Scenario.

La Camera underscored the urgent need for policy interventions and global course-correction to address structural barriers and foster local value in emerging markets and developing economies. He highlighted the risk of an intensifying decarbonisation divide due to concentrated growth in specific geographies and technologies.

In terms of driving forces behind renewable power development, China's shift towards solar and wind energy has been primarily motivated by their increasing cost-competitiveness against traditional coal and gas power generation. Similarly, in the European Union (EU), a combination of policy initiatives and heightened energy security concerns has spurred rapid growth in renewables.

Other regions witnessing notable expansion include the Middle East with a 16.6 percent increase and Oceania at 9.4 percent. The G7 countries collectively added 69.4 GW last year, marking a 7.6 percent increase, while G20 nations saw their capacity rise by 15.0 percent to reach 3,084 GW by 2023.

The report also sheds light on the technological landscape of renewable energy expansion. Solar energy dominated last year's growth, accounting for 73 percent and reaching 1,419 GW. Wind power followed with a 24 percent share of renewable expansion. Despite solar's dominance, other technologies like bioenergy and geothermal energy saw more modest increases.

IRENA’s analysis underscores the necessity for a massive scale-up in financing and international collaboration to accelerate the energy transition, with developing countries identified as a priority. Investments are crucial across various sectors including power grids, generation capacity, flexibility solutions, and storage technologies to achieve the tripled renewable power capacity target by 2030.

Technology-specific highlights from the report include solar photovoltaics' substantial growth by 345.5 GW last year and wind energy's increased rate of expansion at 13 percent, reaching a total capacity of 1,017 GW by the end of 2023. Despite these advancements, bioenergy and geothermal energy expansions have slowed down compared to previous years.

The report concludes with an emphasis on strengthening institutions, policies, and skills as essential pathways towards achieving the ambitious goal of tripling renewable power capacity by the end of this decade.

With inputs from WAM