Released June 07, 2023 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Worldwide renewable electric generating capacity is expected to surge by about 33% in 2023, driven mainly by solar photovoltaic (PV) deployments, according to a new report from the International Energy Agency (IEA) (Paris, France). Further gains are possible in 2024 if countries find a way to shorten transmission interconnection queues and modify auction processes, it added.
PV capacity additions accounted for about two-thirds of worldwide renewable capacity additions last year, said the report, Renewable Energy Market Update, which was released June 1.
In 2022, the world added about 33 gigawatts (GW) of new renewable electric generating capacity, bringing total global renewable electric generating capacity to about 333 GW, the report said. That represented a slowdown from the pre-pandemic addition of about 75 GW in 2020. COVID-19 and supply-chain bottlenecks slowed renewable electric capacity growth in 2021.
Click on the image at right to see worldwide annual renewable electric capacity additions since 2016.
But the IEA expects worldwide renewable electric generating capacity additions to total about 107 GW this year, a record, to more than 440 GW of installed generating capacity. The agency estimates that the addition of 107 GW of renewable electric generating capacity would exceed the combined installed electric generating capacity of Germany and Spain.
The amount of additions could rise even faster in 2023 and 2024 if nations were able to streamline transmission interconnections and find other ways to boost capacity auctions, the agency said. In an "accelerated" case, renewable capacity additions could reach 500 GW this year and about 550 GW in 2024, the report projected.
"Solar and wind are leading the rapid expansion of the new global energy economy," IEA Executive Director Fatih Birol said in a statement accompanying the release of the report. "This year, the world is set to add a record-breaking amount of renewables to electricity systems. The global energy crisis has shown renewables are critical for making energy supplies not just cleaner but also more secure and affordable--and governments are responding with efforts to deploy them faster."
"But achieving stronger growth means addressing some key challenges," he continued. "Policies need to adapt to changing market conditions, and we need to upgrade and expand power grids to ensure we can take full advantage of solar and wind's huge potential."
The report noted that PV capacity, including both large utility-scale and small distributed systems, is expected to account for about 66% of this year's projected increase in global renewable capacity. "In response to higher electricity prices caused by the global energy crisis," it said, "policy makers in many countries, particularly in Europe, have actively sought alternatives to imported fossil fuels that can improve energy security."
"This shifting focus created a favorable environment for solar PV, especially for residential and commercial systems that can be rapidly installed to meet growing demand for renewable energy," noted the Renewable Energy Market Update. These smaller distributed PV applications are projected to account for about half of this year's overall deployment of solar PV--more than the total deployment of onshore wind over the same period.
The IEA noted that global deployments of onshore wind generation are on track to grow sharply this year following two consecutive years of declines. Most of this turnaround comes from projects coming online in China following the lifting of COVID-19 restrictions. Onshore wind deployments also are expected to grow in the U.S. and Europe as supply-chain bottlenecks are eased and projects scheduled to go online in 2022 begin commercial operations in 2023.
As in years past, Chinese deployments of onshore wind and PV generation in 2023 and 2024 are expected to sharply outstrip deployments in the next four largest markets: the European Union (EU), the U.S., India and Brazil.
Click on the image at right to see the IEA's projection of renewable capacity additions for 2022-2024 for the world's five largest markets.
Europe, more than other markets, is embracing an energy security reason for rushing deeper into renewable electricity following Russia's invasion of Ukraine last year, which resulted in a dramatic cutback of Russian hydrocarbon exports to Europe. U.S. exports of liquefied natural gas (LNG), coupled with a sharp ramp-up in renewable energy, helped keep the lights on in Europe last year.
Seeking to make virtue of necessity, the IEA report projected that additional renewable electric generation, coupled with policy measures driving greater use of heat pumps, could back out nearly 30 billion cubic meters (Bcm) of natural gas in the European Union this year and next.
Click on the image at right to see the IEA's estimate of how nearly 30 Bcm of gas use could be displaced by increased renewable electricity and greater electrification measures.
Commenting on the IEA report, Britt Burt, Industrial Info's vice president of research for the Global Power Industry, said, "The IEA has correctly identified the transmission interconnection queue in some U.S. markets are the key impediment to going greener faster. In the U.S., at least, non-emitting renewable energy is virtually the only type of new generation developers have been building."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
PV capacity additions accounted for about two-thirds of worldwide renewable capacity additions last year, said the report, Renewable Energy Market Update, which was released June 1.
In 2022, the world added about 33 gigawatts (GW) of new renewable electric generating capacity, bringing total global renewable electric generating capacity to about 333 GW, the report said. That represented a slowdown from the pre-pandemic addition of about 75 GW in 2020. COVID-19 and supply-chain bottlenecks slowed renewable electric capacity growth in 2021.
But the IEA expects worldwide renewable electric generating capacity additions to total about 107 GW this year, a record, to more than 440 GW of installed generating capacity. The agency estimates that the addition of 107 GW of renewable electric generating capacity would exceed the combined installed electric generating capacity of Germany and Spain.
The amount of additions could rise even faster in 2023 and 2024 if nations were able to streamline transmission interconnections and find other ways to boost capacity auctions, the agency said. In an "accelerated" case, renewable capacity additions could reach 500 GW this year and about 550 GW in 2024, the report projected.
"Solar and wind are leading the rapid expansion of the new global energy economy," IEA Executive Director Fatih Birol said in a statement accompanying the release of the report. "This year, the world is set to add a record-breaking amount of renewables to electricity systems. The global energy crisis has shown renewables are critical for making energy supplies not just cleaner but also more secure and affordable--and governments are responding with efforts to deploy them faster."
"But achieving stronger growth means addressing some key challenges," he continued. "Policies need to adapt to changing market conditions, and we need to upgrade and expand power grids to ensure we can take full advantage of solar and wind's huge potential."
The report noted that PV capacity, including both large utility-scale and small distributed systems, is expected to account for about 66% of this year's projected increase in global renewable capacity. "In response to higher electricity prices caused by the global energy crisis," it said, "policy makers in many countries, particularly in Europe, have actively sought alternatives to imported fossil fuels that can improve energy security."
"This shifting focus created a favorable environment for solar PV, especially for residential and commercial systems that can be rapidly installed to meet growing demand for renewable energy," noted the Renewable Energy Market Update. These smaller distributed PV applications are projected to account for about half of this year's overall deployment of solar PV--more than the total deployment of onshore wind over the same period.
The IEA noted that global deployments of onshore wind generation are on track to grow sharply this year following two consecutive years of declines. Most of this turnaround comes from projects coming online in China following the lifting of COVID-19 restrictions. Onshore wind deployments also are expected to grow in the U.S. and Europe as supply-chain bottlenecks are eased and projects scheduled to go online in 2022 begin commercial operations in 2023.
As in years past, Chinese deployments of onshore wind and PV generation in 2023 and 2024 are expected to sharply outstrip deployments in the next four largest markets: the European Union (EU), the U.S., India and Brazil.
Europe, more than other markets, is embracing an energy security reason for rushing deeper into renewable electricity following Russia's invasion of Ukraine last year, which resulted in a dramatic cutback of Russian hydrocarbon exports to Europe. U.S. exports of liquefied natural gas (LNG), coupled with a sharp ramp-up in renewable energy, helped keep the lights on in Europe last year.
Seeking to make virtue of necessity, the IEA report projected that additional renewable electric generation, coupled with policy measures driving greater use of heat pumps, could back out nearly 30 billion cubic meters (Bcm) of natural gas in the European Union this year and next.
Commenting on the IEA report, Britt Burt, Industrial Info's vice president of research for the Global Power Industry, said, "The IEA has correctly identified the transmission interconnection queue in some U.S. markets are the key impediment to going greener faster. In the U.S., at least, non-emitting renewable energy is virtually the only type of new generation developers have been building."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
