Wind and solar grow despite economic challenges

LONDON

Led by new solar power, the world added renewable energy at breakneck speed in 2023, a trend that if amplified will help Earth turn away from fossil fuels and prevent severe warming and its effects.

Clean energy is often now the least expensive, explaining some of the growth.

Nations also adopted policies that support renewables, some citing energy security concerns, according to the International Energy Agency.

These factors countered high interest rates and persistent challenges in getting materials and components in many places.

The IEA projected that more than 440 gigawatts of renewable energy would be added in 2023, more than the entire installed power capacity of Germany and Spain together.

China, Europe, and the U.S. each set solar installation records for a single year, according to the International Renewable Energy Agency.

China's additions dwarfed those of all other countries, at somewhere between 180 and 230 gigawatts, depending on how end-of-the-year projects turn out.

Europe added 58 gigawatts.

Solar is now the cheapest form of electricity in a majority of countries. Solar panel prices fell a whopping 40 percent to 53 percent in Europe between December 2022 and November 2023 and are now at record lows.

When the final numbers for 2023 are in, solar energy is expected to surpass hydropower in total capacity globally, but for actual electricity produced, hydropower will still make more clean power for some time because it can produce around the clock.

By the end of 2023, the world will have added enough wind energy to power nearly 80 million homes, making it a record year.

As with solar, most of the growth, or more than 58 gigawatts, was added in China, according to research from Wood Mackenzie.

China is on track to surpass its ambitious 2030 target of 1,200 gigawatts of utility-scale solar and wind power capacity five years ahead of schedule if planned projects are all built, the Global Energy Monitor said.

China was one of the few growing markets this year for wind, the Global Wind Energy Council said.

Faster permitting and other improvements in key markets such as Germany and India also helped add more wind energy.

But installations were down in Europe by 6 percent year-over-year, Wood Mackenzie said.

Short-term challenges such as high inflation, rising interest rates and increased costs of building materials forced some ocean wind developers to renegotiate or even cancel project contracts, and some land-based wind developers to delay projects to 2024 or 2025.

Globally the wind buildout was slower this year as well. The top three markets this year are still China, the United States and Germany for wind energy produced on land, and China, the United Kingdom and Germany for offshore.

The analysts are predicting that the global industry will rebound next year and make nearly 12 percent more wind energy available worldwide.