According to the latest report from the International Energy Agency (IEA), global renewable energy capacity will increase by almost 50% by 2023, reaching 510 gigawatts (GW), marking the fastest growth rate in the last two decades. Solar photovoltaic energy alone accounts for three quarters of this growth, with an exceptional increase in China. Indeed, China commissioned as much solar photovoltaic power in 2023 as the entire world did in 2022, in addition to a 66% increase in its wind power additions.

The IEA urged governments to support five pillars of action by 2030, including tripling global renewable energy capacity. However, the report identifies challenges such as political uncertainties, insufficient investment in infrastructure, administrative barriers and limited financing. Despite these obstacles, swift action could lead to 21% higher renewable energy growth, bringing us closer to the global target of tripling by 2030.

The report predicts a transformation of the global energy mix by 2028, with a growing share of renewables, particularly wind and solar photovoltaics. China plays a major role in this growth, accounting for almost 60% of the new capacity expected by 2028. However, the report highlights challenges related to the macroeconomic environment, higher interest rates and the rapid expansion of variable renewables, requiring improved integration and infrastructure.

The report also examines the progress of hydrogen projects, the growth of renewable heating and the implications of falling solar photovoltaic prices. Spot prices for solar modules have fallen by almost 50% in 2023, with increasing oversupply. By 2023, 96% of new solar and wind capacity had lower production costs than new coal- and natural gas-fired power plants. The report points out that despite the growing need for flexibility to integrate renewables, the overall competitiveness of onshore wind and solar PV changes only slightly by 2028.

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