Increasing renewable energy generation, cutting down the cost of electricity, promoting fuel diversification, and investing in energy storage will be the key focus areas for 2023, according to RatedPower‘s annual report.

The report draws insights from the inputs of experts from various industries and simulations run by RatedPower’s solar project simulation software.

A look back

Despite facing challenges due to the COVID-19 pandemic, including disruptions to the supply chain, which led to increased equipment prices and reduced availability, the renewable energy industry continued to grow in 2022.

Governments and businesses, motivated by the ongoing energy crisis and the need to reduce dependence on fossil fuel imports, stepped up their investments in clean energy. This resulted in a continued increase in global capacity installations, despite the difficulties faced by the industry.

Challenges ahead

Industry experts say the renewable energy sector will face significant challenges in the upcoming year. Grid saturation and instability have emerged as major concerns, alongside permitting and regulation, with 68% of respondents identifying both as significant challenges.

Respondents also highlighted the increase in costs as a major obstacle to progress. In addition, more than 40% of those surveyed expressed concerns about the scarcity of skilled personnel, land availability, and raw materials, which could impede the industry’s growth.

Promising technologies

Experts were asked about the most promising technologies in the renewable energy sector. While energy storage remains a popular topic, there is a growing consensus that newer photovoltaic (PV) technologies will play a significant role in the global decarbonization effort.

Agriphotovoltaics, floating PV, vehicle-integrated PV, and building-integrated PV were identified as viable options for expanding solar capacity and achieving the necessary scale for meaningful impact. These emerging PV technologies have the potential to contribute significantly to the deployment of renewable capacity needed to address the challenges of climate change.

A study by Leiden University said electric car batteries could boost storage by injecting electricity into the grid during times of scarcity or store during periods of excess and meet short-term storage demand as early as 2030.

Major players

In a significant shift, the United States has overtaken China as the country with the highest growth potential in the renewable energy sector, according to 60% of survey respondents. China, which has held the top spot for several years, followed closely behind, with 46% of respondents placing it second.

Other countries noted for their ambitious renewable plans and growth potential included India and Australia. This marks the first time the U.S. has been seen as a leader in the renewable energy sector by most industry experts surveyed.

The overall solar installations across all market segments in the U.S. are likely to triple in size, increasing from 129 GW to 336 GW in the next five years, according to an earlier report published by the Solar Energy Industries Association and Wood Mackenzie.

Diversification

Almost 68.5% of industry experts believe that the diversification of renewable energy is one of the top three critical success factors for a leading energy company. Additionally, nearly all respondents agreed that investors should prioritize automation and digitalization of processes and energy storage to address the challenges of grid saturation and instability.

These findings suggest that a strategic approach to diversifying renewable energy sources and investment in innovative technologies will be crucial for energy companies to remain competitive and sustainable in the coming years.

Stimulation data

RatedPower’s software simulations showed a significant increase in the volume of generation capacity, reaching 9.47 TW across 101,822 simulations in 2022.

The average rated power capacity worldwide was approximately 96 GW, with the first quarter exceeding 100 MW, up from 80.69 MW in 2021.

There has been a notable shift towards using string inverters over central inverters for the past two years, with simulations based on string inverters accounting for 53% and central inverters for 47% of simulations.

Although solar tracking systems accounted for more than half of the simulations, a growing trend towards using fixed structures increased by 3%.

Brazil, Mexico, and Chile were the top three countries in average rated power, with capacities of 326.8 MW, 162.6 MW, and 161.95 MW, respectively.

Bifacial modules saw continued growth in popularity, accounting for 71.87% of simulations, up from 57% in 2021.

Need for innovation

This year saw record-high energy costs across Europe, highlighting the advantages of low-carbon energy generation and increasing the urgency for accelerating wind and solar system installations. The respondents are confident that digitalization, storage, and diversification will be key to the continued development of the renewable energy sector.

As the global transition towards sustainable energy sources gains momentum, innovative approaches and technologies will be essential to support renewable energy growth and help mitigate rising energy costs’ impact.