The future of renewable energy is looking more promising than ever before. The past year of 2023 was ripe with great progress in the renewable energy sector, bringing us even closer to a world where every person can have access to 100% safe, affordable and reliable energy. Wonder why I’m saying that? Check out REN21’s Renewables in Energy Supply Module of the Renewables 2024 Global Status Report.
From record-breaking investments to governments embracing solar and wind energy, let’s break down the report to see the ongoing positive developments in the renewables sector
1. More money is going into renewables
The world is investing more in renewable energy than ever before, especially in solar and wind power. In 2023, a record-breaking USD$622.5 billion was invested in renewables!
Most of this money went into solar panels and wind farms, with a 70% increase in tech investments like batteries (for energy storage) and solar panels. In fact, renewable power installations attracted far more investment than fossil fuel power plants did in 2023.
China is leading the charge in this trend, contributing 44% of global renewable energy investments. This is followed by Europe at 20.9% and the U.S. at 15%. Sadly, Africa and the Middle East only got 3.6% of these investments. It’s obvious there’s more work to be done in those regions.
2. Renewable energy is powering more and more of the world
All in all, renewable power capacity grew by 54% just within a year. Renewable energy generated an impressive 30% of the world’s electricity in 2023 which is a MASSIVE increase from just 21.7% in 2013. In fact, three regions in the world now have more than 35% renewable electricity in their power sector: Latin America and the Caribbean, Oceania, and Europe.
Renewables also made up 10% of heat, and 3.5% of fuels which are the other important components through which energy is supplied.
About 536 gigawatts (GW)* of new renewable power was added, with solar power (407 GW) and wind power (117 GW) making up the biggest chunk or nearly 98% of these additions. All these ever-increasing shares show how renewables are becoming essential in meeting global energy needs and replacing dirty energy sources like fossil fuels.
*In case you are wondering what gigawatts are, a watt is a measure of power and there are 1 billion watts in 1 GW, which is enough power to light 100 million LED light bulbs.
3. Countries are bettering their renewable energy targets
Many countries updated their renewable energy goals, pushing for more renewable energy solutions. By the end of the year, 182 countries had set targets across different renewables sectors and technologies. Even better, 90 countries now have national goals, and seven are aiming for 100% renewable energy!
Countries’ governments are making it easier to move to renewables, too. In 2023, 20 countries introduced or updated financial policies like tax credits, grants, and subsidies to support renewable projects. For example, India rolled out new grants in early 2024 to help people buy small solar systems, while Indonesia set aside $6 million to boost rooftop solar power. Canada also introduced tax credits for cleaner tech investments, and in the U.S., 39 states now have clean energy standards, with 17 targeting 100% renewable electricity by 2050.
While governments still have a lot of work to do, especially in making sure that they walk the talk in meeting their ambitious goals and implementing climate solutions responsibly, renewable energy is definitely becoming the new normal.
4. Solar & wind energy will become even more widespread in the coming years
Solar energy is growing like never before as it becomes cheaper each year – which means regular people will also get access to producing their own energy! Since 2018, the rooftop solar market has been steadily expanding, and in 2023, a record-breaking 180 gigawatts (GW) of new solar installations were added. Solar panel costs have sharply decreased just in the last year making it 56% cheaper than fossil fuels & nuclear. Both homes and businesses are increasingly turning to solar because it’s more affordable and easier to install. With the costs of solar panels likely continue to drop further in the coming years, more people, including local communities will turn to solar for their energy needs.
Another source of renewable energy on the rise is wind energy. Wind power is not only cleaner than most existing energy sources, but it’s also one of the most cost-effective energy sources out there. Many countries are increasing their wind power targets to tackle the climate crisis, boost energy security, and drive economic growth. These developments mean that wind energy will be adopted more and more in the near future.
5. Renewables are creating more & equitable jobs
Renewables are not only driving job growth but also reducing gender inequality by offering more opportunities for women in both employment and entrepreneurship.
Solar energy sector alone is creating an impressive number of jobs. In 2023, it created an estimated 2.2 million jobs to a total of 7.1 million jobs, mostly in construction and manufacturing. What’s even better is that 40% of these jobs were held by women. This is a much higher percentage than the number of women employed by the fossil fuel industry!
The renewable energy sector will also see substantial job growth in the coming years, as a result of national and regional policies aimed at combating climate change by promoting renewable energy. In the United States, the Inflation Reduction Act of 2022 is projected to create nearly 5 million jobs in renewables. Similarly, Canada’s climate law is expected to boost the sector by almost 50% by 2030, reaching around 640,000 jobs. In Europe, the REPowerEU plan will generate an estimated 3.5 million jobs between 2022 and 2030. Meanwhile, South Africa anticipates 462,000 new jobs in renewable energy from 2017 to 2025. For the latest facts & figures on economic and social benefits that renewables are bringing, check out the Economic and Social Value Creation Module of the Renewables 2024 Global Status Report which comes out in November!
6. We still have time to meet global energy targets
At COP28 in Dubai, governments agreed on a big goal: triple renewable energy capacity and double energy efficiency by 2030. While we’ve made great progress, we’re not quite there yet. Right now, we’re on track to add 8,000 gigawatts of renewable energy, but we need to hit 11,000 GW by 2030 to meet the COP28 goal. The good news? There’s still time to catch up!
As part of the international climate treaty, the Paris Agreement, countries are required to update their climate action plans, known as Nationally Determined Contributions (NDCs), every five years. As of early 2023, only 14 countries had clear renewable energy targets for 2030 in their NDCs. Together, these commitments only add up to 1,300 GW—so there’s plenty of room to aim higher and push harder. The next round of updating is due soon (in early 2025) which means there’s a huge opportunity to step up and make stronger commitments, and we are demanding that countries do so!
The renewable energy revolution is well underway, with solar and wind leading the charge. To continue transforming global energy systems, we should expand our focus to include heating, fuels, and other proven renewable technologies. We must also continue to urge our leaders to take stronger climate action now. Let’s leverage this momentum in the renewables sector to secure a sustainable energy future for generations to come!
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