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The installations of green energy infrastructures increased by half globally last year. This trend is expected to continue in the next five years, particularly for photovoltaics. Green energy is increasingly favored. About 507 gigawatts (GW) were commissioned last year, 50% more than in 2022, according to the "Renewables 2023" report released this Thursday by the International Energy Agency (IEA). Photovoltaics take the lead, representing three-quarters of these new installations.
The IEA anticipates the "strongest growth" in the next five years ever seen in thirty years. "Renewable electricity production capacity has never expanded so rapidly, providing a real chance to achieve the goal set by governments at COP28 to triple global capacity by 2030," emphasizes the agency.
China, the world's second-largest economy, continues to drive green energy growth, with a 66% increase in wind installations last year. "Onshore wind and photovoltaics are now cheaper than new fossil fuel power plants almost everywhere and cheaper than existing plants in most countries," says the IEA's director, Fatih Birol.
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Last year, the prices of photovoltaic modules dropped by nearly 50%. And this trend is expected to continue due to the increased production capacity of solar panels, anticipates the IEA.
On the other hand, wind power is experiencing the opposite trend. In Europe, the sector is affected by a surge in production costs and interest rates. The length of permit acquisition procedures also complicates their installation.
While the goal of tripling green energy is conceivable globally, significant disparities exist between the needs and means of developed and emerging countries. The latter need additional financing to massively develop renewables as well, points out the IEA.
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For rich countries and the largest emerging economies, the IEA recommends ending hesitations in national policies, investing in the modernization and adaptation of networks, and reducing delays and administrative complications. For other countries, access to financing and the establishment of robust regulatory frameworks will be decisive, the report adds. Setting renewable installation targets, still absent in some countries, will also be crucial.
However, the IEA report dampens hopes of a massive expansion of green hydrogen. According to it, only 7% of announced projects are expected to be realized by 2030 due to insufficient investments and demand.