According to a recent report by energy research body– BloombergNEF (BNEF), the global transition towards clean electricity has reached new milestones, with wind and solar contributing 13.9% which is reported to reach a new record high. Additionally, a pair of new reports and findings from two reports published by BNEF: Power Transition Trends 2024, and the 2H 2024 Renewable Energy Investment Tracker, indicate that zero-carbon sources accounted for over 40% of the electricity generated worldwide in 2023.
2024 Trends
Among other findings highlighted in Power Transition Trends, the total global power-generating capacity reached 8.9 terawatts in 2023. The report also mentioned that Wind power alone now accounts for 1 terawatt of installed capacity. However, the wind sector’s achievement is eclipsed by surging solar deployment, with a net 428 gigawatts of solar capacity added in 2023, up 76% year-on-year, bringing the total global installed solar fleet to 1.6 terawatts.
Wind investment in the first half of 2024 reached $90.7 billion, down 11% from last year’s period. Offshore wind was particularly affected, as investments are heavily driven by government-led auction calendars. Meanwhile, onshore wind faces frequent challenges around permitting and grid interconnection. Wind projects are still moving forward, but the industry has struggled to achieve the same step-change in deployment as solar.Ten economies accounted for nearly three-quarters of total renewable energy generation in 2023. Mainland China stood head and shoulders over its next-nearest competitor – as it has for a decade – with nearly one-third of all global renewable energy output last year. The US, Brazil, Canada, and India rounded out the top five, which accounted for 60% of the world’s renewable generation last year.
Regarding global renewable energy investment in the first half of 2024, a total investment of $313 billion was made during that period. This is lower than the investment tracked in the previous six months, but matches the figures from the first half of 2023, indicating that the sector as a whole is maintaining momentum.
“Oil majors may be reducing their focus on renewable energy, but this hasn’t made a dent in global investment,” said Meredith Annex, lead author of Renewable Energy Investment Tracker. “It’s clear that if there are projects ready and able to move forward, the capital will come. The focus should be on simplifying wind and solar development around the world.”
BNEF’s research shows that solar and wind have performed differently in 2024. Solar investment in the first half of 2024 remained up year-on-year, reaching $221 billion for utility-scale and small-scale assets. However, the growth rate shows signs of slowing, as cheaper modules mean that the same amount of capacity requires less investment, and as grid bottlenecks start to take hold in some markets.
The findings from two reports published by BNEF: Power Transition Trends 2024 and the 2H 2024 Renewable Energy Investment Tracker indicated accelerating momentum toward clean power. Wind and solar represented nearly 91% of net new power capacity additions in 2023 – up from 83% the previous year – while fossil fuels, including coal and gas, represented just 6% of net new build – the lowest level ever.
The report also found that the renewable energy industry is set to repeat a similar feat in 2024, as renewable energy projects secured $313 billion in new investment in the first half of the year, on par with the first half of 2023. Despite a 4% decline due to cheaper equipment, China continues to dominate new renewable energy investments. The US was the second-largest market in the first half of 2024 and has seen half-year investment levels rise 63% since the Inflation Reduction Act was passed. Pakistan skyrocketed to become the fifth-largest market for new solar investment, up from 14th in the same period last year.
Power Transition Trends corroborates data from 140 markets – along with aggregated data from the rest of the world – highlighting trends in the energy transition and the progress nations are making toward decarbonizing their economies. The renewable energy investment tracker is BNEF’s biannual tally of new investment in renewable energy capacity globally, and equity raised by specialist companies. “We have seen a step-change in renewable energy compared to a few years ago. There’s now no question this is the largest source of new power generation, wherever you go,” said Sofia Maia, the lead author of Power Transition Trends.
