Clean electricity breaks new records, with renewables on track for another strong year
Research from BloombergNEF highlights that more than 40% of the world’s electricity came from zero-carbon sources for the first time in 2023; 14% from wind and solar.
According to a pair of new reports by research provider BloombergNEF (BNEF), for the first time ever, zero-carbon sources made up over 40% of the electricity the world generated in 2023. Hydro power accounted for 14.7%, while wind and solar contributed almost as much at 13.9% – a new record high, whilst nuclear’s share was 9.4%.
Power Transition Trends 2024, and the 2H 2024 Renewable Energy Investment Tracker, published by BloombergNEF, indicate that momentum towards clean power has accelerated, with wind and solar representing nearly 91% of net new power capacity additions in 2023 – up from 83% the year before – while fossil fuels including coal and gas represented just 6% of net new build.
Projections suggest the renewable energy industry will continue on this path of progress again in 2024, as renewable energy projects secured $313 billion of new investment in the first half of the year, on par with the first half of 2023.
Ten economies accounted for nearly three-quarters of total renewable energy generation in 2023. Mainland China is charging ahead 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.
BNEF’s research shows that solar and wind are performing differently so far 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 grid bottlenecks cause delays in some markets.
Wind investment in the first half of 2024 reached $90.7 billion, down 11% from the same period last year. Offshore wind, where investments are driven heavily by government-led auction rounds, was particularly lower. 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.
“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.”
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