For the first time ever, in 2023, zero-carbon emission sources accounted for over 40% of the electricity generated globally. Wind and solar power accounted for almost 91% of the new capacity additions.
The data on clean electricity 2023-2024
The International Energy Agency had highlighted this in its Renewables 2023 analysis at the beginning of the year. BloombergNEF (BNEF) reiterates this today through two separate reports: Clean electricity has set new records.
The most striking fact? Last year, for the first time ever, zero-carbon sources accounted for over 40% of the electricity generated globally. The lion’s share goes to hydropower, contributing 14.7% to the total. Together, Wind and solar energy cover a share of 13.9%, a new record for the sector.
These numbers belong to Power Transition Trends 2024 and the 2H 2024 Renewable Energy Investment Tracker, two reports that unequivocally show how in 2023 the momentum towards clean electricity accelerated due to a new wave of “green” facilities. Just think that the wind and solar duo alone accounted for almost 91% of the new net capacity additions in 2023, up from 83% the previous year. On the other hand, new fossil plants have dropped to 6% of all net additions, the lowest level ever.
“The global transition to clean electricity has reached new important milestones,” reads a press release from BNEF. “The renewable energy sector seems poised to repeat a similar feat in 2024,” as it has already secured $313 billion in new investments in the first half of the year, in line with the first half of 2023.
Among the findings highlighted in the reports, BNEF states that the total global electricity generation capacity reached 8.9 TW in 2023. Wind energy alone now represents 1 TW of installed capacity, a historic milestone. However, the segment’s result is overshadowed by the increase in solar usage, with a new photovoltaic capacity of 428 GW added in 2023 (up 76%), bringing the total installed capacity to 1.6 TW.
Last year, 10 economies accounted for nearly three-quarters of the total renewable energy production.
Research also shows how solar and wind energy are currently following different trends. Solar investments in the first half of 2024 continued to grow yearly, reaching $221 billion for small-scale and utility-scale assets. However, the growth rate shows signs of slowing down as the current decrease in module prices implies lower spending for the same capacity. Moreover, in some markets, bottlenecks in the electrical grid are starting to emerge.
Wind investments in the first half of 2024 reached $90.7 billion, a decrease of 11% compared to the same period last year. The offshore wind sector, where investments are heavily driven by government auction schedules, is experiencing the most significant decline.
