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The installations of green energy infrastructure increased by half last year globally.
Green energy is increasingly popular. About 507 gigawatts (GW) were commissioned last year, which is 50% more than in 2022, according to the "Renewables 2023" report published on Thursday by the International Energy Agency (IEA). Photovoltaics lead the way, representing three-quarters of these new installations. The IEA anticipates the "strongest growth" in the next five years ever seen in thirty years. "Renewable electricity production capacity has never expanded so rapidly, providing a real chance of achieving the goal set by governments at COP28 to triple global capacity by 2030," emphasizes the agency.
China, the second-largest global economy, continues to drive the growth of green energy, with a 66% increase in wind installations last year. "Onshore wind and photovoltaics are cheaper today than new fossil fuel power plants almost everywhere, and cheaper than already installed plants in most countries," notes the IEA's director, Fatih Birol.
Last year, the prices of photovoltaic modules dropped by nearly 50%. This trend is expected to continue due to the increase in solar panel production capacity, according to the IEA. However, wind power is experiencing the opposite movement. In Europe, the sector is affected by a surge in production costs and interest rates. The length of permit acquisition procedures complicates their installation.
While the goal of tripling green energy is feasible globally, significant disparities exist between the needs and means of developed and emerging countries. The latter need additional financing to massively develop renewables as well, points out the IEA.
For rich countries and the largest emerging economies, the IEA recommends ending hesitations in national policies, investing in the modernization and adaptation of networks, and reducing delays and administrative complications. For other countries, access to financing and the establishment of robust regulatory frameworks will be crucial, adds the report. Also, the setting of renewable installation goals, which are still absent in some countries.