In 2023, the world added renewable energy at a breakneck pace, a trend that, if amplified, could help the planet move away from fossil fuels and prevent severe global warming.
Many nations adopted policies that supported renewables, some citing energy security concerns. Clean energy is often the least expensive, explaining some of the growth. In addition to high interest rates, there were persistent challenges obtaining materials and components in many places due to these factors.
In 2023, more renewable energy will be installed than all the installed power capacity of Germany and Spain combined, according to the IEA.
Mohammed bin Rashid Al Maktoum Solar Park hosts the COP28 United Nations Climate Summit in Dubai, United Arab Emirates on Monday, Dec. 11, 2023. Solar power is now the cheapest form of electricity in most countries. AP Photo/Joshua A. Bickel.
According to the International Renewable Energy Agency, China, Europe, and the US set solar installation records in a single year.
With 180 to 230 gigawatts of additions, China dwarfed all other countries, while Europe added 58 gigawatts.
Between December 2022 and November 2023, solar panel prices in Europe fell a staggering 40% to 53%, reaching record lows. According to Michael Taylor, senior analyst at IRENA, the deployment in Europe has been at breakneck speed.
Globally, solar energy is expected to surpass hydropower in 2023, but hydropower will still make more clean power for some time because it can produce electricity around the clock.
California continues to have the most solar energy in the U.S., followed by Texas, Florida, North Carolina, and Arizona. “US solar growth was largely influenced by state and federal incentives” , according to Daniel Bresette, president of the Environmental and Energy Study Institute.
Solar manufacturing also grew in the United States. As a result of the Inflation Reduction Act, more than 60 solar manufacturing facilities were announced in the last year, according to Abigail Ross Hopper, the president and CEO of the Solar Energy Industries Association.Wind energy will power nearly 80 million homes by 2023, making it a record year for wind energy.
According to Wood Mackenzie research, most of the growth, or more than 58 gigawatts, occurred in China. According to the Global Energy Monitor, if planned projects are all built, China will surpass its ambitious 2030 goal of 1,200 gigawatts of utility-scale solar and wind power capacity five years ahead of schedule.
Among the few wind markets that grew this year were China, the Global Wind Energy Council reported. Wood Mackenzie reported that installations in Europe were down 6% year-over-year due to faster permitting and other improvements in key markets like Germany and India.
Many ocean wind developers had to renegotiate or even cancel project contracts as a result of high inflation, rising interest rates, and rising building materials costs, while some land-based wind developers had to delay projects until 2024 or 2025 due to short-term challenges.
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