World's Renewable Energy Saw Fastest Growth in 25 Years in 2023, Says IEA
According to a recent assessment by the International Energy Agency (IEA), renewable energy experienced its fastest growth in the past 25 years in 2023. This report comes in the wake of nations agreeing on ambitious new targets to combat climate change. The Paris-based agency highlighted that the remarkable increase in solar energy in China played a significant role in this growth, with the world adding nearly 510 gigawatts of renewable energy capacity. This is equivalent to powering almost 51 million homes for a year. Europe, the United States, and Brazil also saw record growth in the renewable energy sector.
Fatih Birol, the Executive Director of the IEA, expressed optimism that renewable energy is projected to increase by two and a half times by 2030. Although this falls slightly short of the tripling goal agreed upon by nations at the UN climate talks last month, Birol believes that the target is still attainable. He pointed out that increasing funding for clean energy projects in developing countries presents the biggest challenge in realizing the goal of achieving 11,000 gigawatts of renewable energy by 2030, compared to the approximately 3,400 gigawatts in 2022.
Countries set a goal in 2015 to limit global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) to mitigate the severe consequences of climate change. The latest scientific data reveals that Earth is just below this threshold, with projections indicating that January 2024 will mark the first time a 12-month period exceeds the 1.5-degree limit. The recently concluded climate talks in Dubai, for the first time in nearly three decades, acknowledged fossil fuels as the primary cause of climate change and emphasized the need to transition away from them. However, concrete requirements for doing so were not outlined in the agreement.
The IEA's report forecasts a significant surge in solar power and onshore wind energy deployment in the United States, the European Union, India, and Brazil through 2028. The agency expects an addition of 3,700 gigawatts of clean energy capacity across 130 countries within that timeframe, with solar and wind energy accounting for almost all of it. Notably, China, which already leads the world in renewable energy, is projected to account for 60% of the new clean energy capacity that will be operational by 2028.
Furthermore, the report highlights the declining costs of solar components, which decreased by almost 50% in 2023 compared to the previous year. The IEA analysts predict that cost reductions and rapid deployment will continue in 2024 as manufacturing outpaces demand. On the other hand, wind energy faces more challenges, especially outside China, despite the country having the largest wind energy capacity globally. Issues such as supply chain disruptions, higher costs, and bureaucratic obstacles hinder faster installations.
Policy uncertainties, fragile economic environments, and insufficient investment in electricity transmission infrastructure pose key challenges to clean energy growth in developed countries, as stated in the report. Developing countries, on the other hand, struggle with limited access to finance for installing renewable energy and the absence of robust governance and regulatory frameworks that reduce risks and attract clean energy investments.
Tripling renewable energy capacity by 2030, as outlined in the goals set by nations, hinges on expediting permitting processes and the construction of transmission and storage infrastructure, according to Sean Rai-Roche, a policy advisor at the climate think tank E3G. Rai-Roche emphasizes the need for immediate action by governments and businesses to protect the planet for future generations, stating that delay is not an option.
The report from the IEA underscores the significant progress made in renewable energy adoption worldwide. However, it also highlights the importance of addressing challenges and accelerating efforts to transition towards cleaner sources of energy. With the threat of climate change becoming increasingly urgent, the global community must continue to prioritize and invest in renewable energy as a crucial step towards a sustainable future.
