2023 has been a landmark year for renewable energy, with solar power leading the charge and significant advancements in battery technology. The global capacity for renewable energy increased rapidly, signalling a potential shift away from fossil fuels and a move towards mitigating the effects of global warming. This growth has been fuelled by the declining cost of clean energy, making it the most affordable option in many countries, and bolstered by supportive policies from nations prioritising energy security.
The International Energy Agency (IEA) estimates that over 440 gigawatts of renewable capacity were added in 2023, which exceeds the combined power capacity of Germany and Spain. Solar power installations reached all-time highs in China, Europe, and the United States, with China’s contribution being the most significant. Solar is now cheaper than ever, with prices dropping by up to 53% in Europe. Despite the surge in solar energy, challenges such as transformer shortages and rising interest rates remain.
Wind energy also saw substantial growth, particularly in China, which is set to exceed its 2030 targets for solar and wind capacity ahead of schedule. However, Europe experienced a decrease in wind installations due to economic pressures, and the US offshore wind industry is just beginning to develop its first commercial-scale farms.
In the realm of electric vehicles (EVs), 2023 marked a significant increase in sales, indicating a robust year for batteries. Investment in battery production and recycling soared in the US, thanks to the Inflation Reduction Act. Although the US and Europe are expanding their battery manufacturing capabilities, China remains the leader with a substantial number of gigafactories.
Despite various setbacks, including energy challenges and health and safety violations, the industry remains optimistic about the continued growth of battery technology and its role in the global transition to clean energy.
This year saw record-breaking solar output and a ‘momentous shift’ in battery production.
Source: Europe, US, China: Where installed the most wind and solar power in 2023? | Euronews