Global renewable capacity additions are predicted to soar by 107 gigawatts (GW), the largest absolute increase ever, to more than 440 GW in 2023, according to the International Energy Agency (IEA)'s recently published Renewable Energy Market Update Outlook for 2023 and 2024.
This unprecedented growth is being driven by expanding policy support, growing energy security concerns and improving competitiveness against fossil fuel alternatives, said the IEA. These factors are outweighing rising interest rates, higher investment costs and persistent supply chain challenges, it added.
Solar PV capacity accounts for two-thirds of this year's projected increase in global renewable capacity, whilst onshore wind capacity additions are set to rebound by 70% in 2023 to 107 GW, following two consecutive years of decline.
Projected growth of renewable energy such as clean electricity, bioenergy boilers, heat pumps and solar thermal and geothermal technologies could displace almost 8 bcm of EU buildings-related gas consumption annually in 2023 and more than 17 bcm in 2024, according to the report.
This would represent a significant contribution to cover increasing gas demand, should harsher winters and hotter summers occur over the course of 2023-2024.
Download the report here.