Renewable Energy Infrastructure Expanding
Date Posted: September 14, 2023
Posted In: Environment/Sustainability,
From Business Facilities: The past two years have seen a significant acceleration in annual clean energy investment worldwide, according to the International Energy Agency’s (IEA) report World Energy Investment 2023. The report’s analysis highlights the impact of the volatile fossil fuel markets resulting from the Russian Federation’s invasion of Ukraine, which has expedited the adoption of various clean energy technologies. Improved economics, particularly in the context of high and volatile fossil fuel prices, increased policy support through initiatives like the U.S. Inflation Reduction Act of 2022, and new programs in Europe, Japan, China, and other regions are also factors in this growth. Additionally, the alignment of climate and energy security objectives has played a significant role, particularly in economies that heavily rely on energy imports.
“Solar and wind are leading the rapid expansion of the new global energy economy. This year, the world is set to add a record-breaking amount of renewables to electricity systems—more than the total power capacity of Germany and Spain combined,” said IEA Executive Director Faith Birol. “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.”
The IEA estimates approximately USD $2.8 trillion will be invested in the energy sector in 2023. Of this amount, globally more than USD $1.7 trillion will be directed toward clean energy, encompassing renewable power, nuclear energy, grids, storage, low-emission fuels, efficiency enhancements, and end-use renewables and electrification. Presently, for every dollar spent on fossil fuels, USD $1.7 is being invested in clean energy. This represents a notable shift from the 1:1 ratio observed just five years ago.
Global additions of renewable power capacity are expected to jump by one-third this year. Solar PV additions will account for two-thirds of this year’s increase in renewable power capacity and are expected to keep growing in 2024. Manufacturing capacity for all solar PV production segments is expected to more than double to 1,000 GW by 2024, led by China and increasing supply diversification in the United States, India, and Europe. Based on those trends, the world will have enough solar PV manufacturing capacity in 2030 to comfortably meet the level of annual demand envisaged in the IEA’s Net Zero Emissions by 2050 Scenario.