In 2023, solar and wind energy increased by 85% and 60%. New outlooks in the latest IEA report
Despite the progress, the distribution of clean energy remained exclusively in developed countries.
In 2023, renewable energy achieved remarkable milestones, with increases in photovoltaic and wind power installations seeing an 85% and 60% rise, respectively, reaching nearly 540 GW of new capacity.
Despite these advancements, the distribution of clean energy remained predominantly confined to developed economies and China, leaving the rest of the world significantly behind.
Wind and Solar: China and Developed Countries Monopolize 90% of New Installations
These regions monopolized 90% of new wind and solar installations and over 95% of the global electric vehicle market, with sales rising 35% to 14 million units.
Conversely, heat pump sales saw a slight decline due to consumer caution over large expenditures and a slight reduction in concerns about gas costs, highlighting the need for supportive policies. New nuclear capacity decreased to 5.5 GW, but such annual variations are less significant given the lengthy development times in nuclear, which saw the start of 5 new projects in 2023.
The capacity increase of hydrogen electrolyzers recorded an impressive 360% growth, although from a minimal base, with China at the forefront and the USA ramping up its efforts. However, energy efficiency lagged, with an energy intensity improvement of only 1% in 2023, well below the COP28 target.
The 5 Key Clean Energy Technologies Helped Avoid 25 EJ of Fossil Fuels
Since the start of post-Covid stimulus programs in 2019, there has been a significant acceleration in renewable energy, outpacing fossil fuel growth. This led to the production of about 1800 TWh of low-impact energy, despite declines in hydro and nuclear power.
The 5 key clean energy technologies helped avoid annual fossil fuel energy consumption of about 25 EJ, equivalent to 5% of global demand or almost the total energy demand of Japan and South Korea.
Solar and wind technologies played a crucial role in reducing coal demand, avoiding about 320 and 235 Mtce per year, respectively. Wind and solar also significantly contributed to reducing natural gas demand, alongside notable contributions from heat pumps and nuclear energy. Lastly, electric vehicles had a substantial impact on containing oil demand, helping keep consumption below pre-pandemic levels.
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