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					</table>Despite global renewable energy capacity adding a record 741 GW in 2024, the world is projected to fall short of the goal to triple renewable capacity by 2030 by 800 GW, according to the Renewables 2025 Global Status Report published by <a href="https://www.ren21.net/" target="_blank" rel="noopener">REN21</a>.
China led with 445 GW or 60.2% of the total capacity additions. Europe followed with 92 GW, Oceania and Asian countries, excluding China and India, added 73 GW, and North America contributed 56 GW. India installed 36 GW, Brazil 18 GW, the rest of Latin America and the Caribbean 8 GW, and Africa and the Middle East together added 13 GW.
Power Mix
Global electricity generation reached an all-time high of 30.9 thousand TWh in 2024, with renewables contributing 31.9% of the total. Fossil fuels remained the dominant source, accounting for 18.2 thousand TWh or 59.1%, although their share continued to decline. Nuclear power accounted for the remaining 9%.
Among renewable sources, hydropower was the largest at 14.3%, while solar and wind saw the fastest growth. Solar generation increased 16-fold between 2015 and 2024, reaching 2,132 TWh, or 6.9% of the global total. Wind power increased nearly fourfold to 2,494 TWh, representing 8.1% of total energy consumption. Bioenergy and geothermal sources together added 800 TWh or 2.6%.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81129 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-1.png" alt="REN21 1" width="752" height="533" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-1.png 752w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-1-300x213.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-1-650x461.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-1-624x442.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-1-600x425.png 600w" sizes="(max-width: 752px) 100vw, 752px" /></a>
Source: REN21
Total installed solar capacity reached 2.25 TW in 2024, more than double the 2022 figure. An estimated 602 GW of new solar capacity was added, a 32% <a href="https://www.mercomindia.com/renewables-struggle-demand-2023-report/" target="_blank" rel="noopener">increase</a> from 2023. China accounted for about 60% of this growth, followed by the U.S. with 8% and India with 5%. Pakistan emerged as a notable market, accounting for 3% of new capacity, surpassing the combined solar additions by Italy, France, and Australia, as battery-backed solar systems became a preferred option for achieving energy independence.
Wind power also reached a record high in 2024, with 116.8 GW of new capacity connected to grids. Onshore wind rose 3.1% to 109 GW, while offshore wind fell by 27.5%. China was again the primary driver, contributing 68.3% of total additions. Excluding China, global wind capacity additions declined by 9.6%.
By the end of the year, total installed wind capacity had reached 1,135.4 GW, an 11.2% increase. The wind sector faced ongoing challenges, including policy uncertainty, rising costs, permitting delays, grid constraints, and growing local opposition in some countries. Despite these challenges, deployment picked up in select emerging markets, supported by improved policy frameworks.
Despite the continuous expansion of renewable energy deployment, the world remains significantly behind the 2030 target of 11,000 GW of installed capacity. Reaching this goal will require more than doubling the current capacity within the next six years, demanding an unprecedented developmental pace.
Energy Storage
Battery energy storage systems were the fastest-growing storage technology in 2024, with 69 GW of new capacity added globally. This increased the total installed battery storage capacity to an estimated 150 GW, with grid-connected systems making up 78% of the year’s additions.
China led the deployment, accounting for 67% of new installations, driven by policies mandating battery storage alongside new solar and wind projects. The U.S. and Canada followed, with the U.S. alone adding 10.4 GW to reach a total of 26 GW. Other regions showing strong growth included Europe, Latin America, and the broader Asia Pacific.
Both the size and discharge duration of battery systems increased in 2024. Seventeen installations of more than 1 GW were deployed, up from just four in 2023. Around 140 such large-scale projects are planned for 2025 and 2026. In Europe, the average storage duration increased from one hour and forty minutes in 2023 to two hours in 2024, while in the U.S. and Canada, it reached three hours.
Pumped hydro storage remained the dominant energy storage technology, with total global capacity reaching 189 GW. Additions in 2024 totaled 8.4 GW, a 4.5% increase from the previous year.
The global energy storage capacity additions are expected to <a href="https://www.mercomindia.com/global-energy-storage-market-remains-resilient-amid-us-and-china-policy-changes/" target="_blank" rel="noopener">grow</a> by 35% in 2025 to 94 GW or 247 GWh.
Investments
Global investment in renewable energy reached $728 billion, representing an 8% increase from the previous year. This increase was significantly lower than the 19% growth in 2023 and 23 23% in 2022. Solar power and electric vehicles received the bulk of the funding, highlighting an imbalance in investment across technologies. At just 48% of the annual level required through 2030, renewable energy investment remains insufficient to meet the target of net-zero greenhouse gas emissions by 2050.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81128 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-2.png" alt="REN21 2" width="752" height="601" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-2.png 752w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-2-300x240.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-2-650x519.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-2-624x499.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-2-600x480.png 600w" sizes="(max-width: 752px) 100vw, 752px" /></a>
Source: REN21
Annual investment in solar power surged 22% in 2024 to reach $521 billion, outpacing the 20% growth in 2023 and underscoring the continued dominance of solar in the energy transition.
Investment trends show significant regional disparities. Between 2015 and 2024, China consistently led global renewable investment, peaking at over $290 billion in 2024. Investments in the European Union and the UK dropped from $142 billion in 2023 to $114 billion in 2024, while U.S. investment fell from $110 billion to approximately $97 billion. In contrast, investment in Asia (excluding China), Africa, and the Middle East continued to accelerate.
Wind energy investment decreased by roughly 15% in 2024, falling to its lowest level since 2021. Persistent permitting issues, supply chain problems, and weak policy signals drove this decline. Several U.S. and European offshore wind projects defaulted in 2023 and 2024 due to unhedged costs and inflexible revenue-support programs. Rising prices for materials, labor, and logistics added pressure, as did the broader economic fallout from the war in Ukraine, which raised capital expenditures for developers worldwide. These factors, combined with narrow margins and unfavorable project economics, made conditions especially difficult for wind developers.
Investment in power grids and energy storage reached new highs in 2024. Grid spending increased 15% to $390 billion, with growth in all regions, particularly in Europe. Energy storage investment increased by 36% to $54 billion, driven mainly by projects in Asia and the U.S. However, grid investment must rise further to accommodate the scale of renewable generation needed to meet global climate goals.
High capital costs continue to be a significant barrier to the deployment of renewable energy in emerging and developing economies. For utility-scale solar and wind projects, the weighted average cost of capital is often more than double that in advanced economies due to political and economic instability, currency risks, and underdeveloped financial markets. These hurdles raise financing costs and make renewable projects less viable. Reducing the capital costs in these regions could substantially lower global financing needs.
A one percentage point reduction could cut the cost of reaching net zero by $150 billion annually. In countries such as Kenya and Senegal, high interest rates and currency risks make renewable investments far more expensive compared to developed markets. Without targeted policy and financial support, these regions risk falling behind in the energy transition.
Outlook
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-81127 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3.png" alt="REN21 3" width="1137" height="792" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3.png 1137w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3-300x209.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3-768x535.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3-650x453.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3-624x435.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/06/REN21-3-600x418.png 600w" sizes="(max-width: 1137px) 100vw, 1137px" /></a>
Source: REN21
As governments prioritize energy security and resilience, renewable energy sources are becoming increasingly central to national strategies. New national and international commitments highlight the growing recognition of renewable energy as vital for climate mitigation and adaptation.
Distributed and off-grid solar systems are also expanding rapidly in emerging economies, driven by public demand and demonstrating the effectiveness of decentralized energy solutions. Power purchase agreements, particularly from tech firms and industrial players, reflect growing confidence in renewables as a reliable and cost-effective source of energy.
The integration of renewable energy across housing, mobility, and industry is also opening new avenues for its adoption as the energy transition aligns with broader economic strategies. Advances in digitalization and artificial intelligence are improving grid operations. They are also enhancing system planning and enabling more adaptive energy systems.

World Lags 2030 Renewable Energy Goals Despite Record 741 GW Additions: Report

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					</table><a href="https://www.mercomindia.com/mnre-launches-portal-in-solar-cells-and-modules" target="_blank" rel="noopener">The Ministry of New and Renewable Energy (MNRE) has developed an online portal to ensure the traceability of domestically manufactured solar photovoltaic (PV) cells and modules and to</a> assist in the verification of Domestic Content Requirement (DCR) in solar PV modules deployed across the country. The portal, developed in consultation with solar manufacturers’ associations, is hosted on the website of the National Institute of Solar Energy (NISE) and can be accessed through the following link: <a href="https://solardcrportal.nise.res.in/">https://solardcrportal.nise.res.in/</a>
<a href="https://www.mercomindia.com/mnre-guidelines-solar-modules-inverters" target="_blank" rel="noopener">The MNRE has released a framework for the enlistment of solar photovoltaic modules and inverters under the PM-Surya Ghar: Muft Bijli Yojana to assist</a> consumers in making informed choices when selecting high-efficiency products with better warranties for their rooftop solar installations. The ministry said it has prescribed minimum technical standards for various components of rooftop solar installations to ensure quality.
<a href="https://www.mercomindia.com/india-short-100-billion-iea-net-zero" target="_blank" rel="noopener">India has made strides in expanding its renewable energy capacity over the past year, but a funding gap of over $100 billion could still derail it from meeting the International Energy Agency’s</a> net-zero emission pathway by 2030, a report by accounting firm Ernst &amp; Young warns. In the 2023-24 financial year, India added nearly 26 GW of new power generation capacity, with over 70% coming from renewable sources like solar and wind.
<a href="https://www.mercomindia.com/cerc-grants-license-for-energy-in-madhya-pradesh" target="_blank" rel="noopener">The Central Electricity Regulatory Commission has directed that a transmission license be granted to Pachora Power Transmission to establish the Transmission System for Evacuation</a> of Power from RE Projects in Rajgarh (1,000 MW) SEZ in Madhya Pradesh-Phase II. Pachora Power Transmission had requested a transmission license to establish a transmission system for evacuating power from renewable energy projects in the Rajgarh SEZ (1,000 MW) in Madhya Pradesh, Phase II.
<a href="https://www.mercomindia.com/amara-raja-invests-e20-million-in-inobat-ups-stake-by-4-5" target="_blank" rel="noopener">Battery manufacturer Amara Raja Energy &amp; Mobility has invested an additional €20 million (~$21.4 million) in electric vehicle (EV) battery firm InoBat, Norway, for a 4.5% equity stake.</a> Amara Raja’s stake in the Slovakia-headquartered InoBat now stands at 9.32%. It had earlier invested €10 million in the company to enable it to secure a foothold in the European EV ecosystem. InoBat specializes in custom-designing batteries for EVs to meet specific requirements of global mainstream and specialist original equipment manufacturers .
<a href="https://www.mercomindia.com/us-energy-storage-market-deployed-in-q1-2024-up-89-yoy" target="_blank" rel="noopener">The U.S. energy storage market set a first-quarter record for capacity installed in Q1 2024, with 1,265 MW/3,512 MWh deployed across all segments.</a> This marks the highest storage capacity installed in the U.S. in the first quarter, representing an 89% increase from Q1 2023. In Q1, 993 MW/2,952 MWh of energy storage capacity was deployed in the grid-scale segment, up 101% year-over-year, with Nevada, Texas, and California accounting for 90% of the MW and MWh capacity, according to the latest report by Wood Mackenzie.
<a href="https://www.mercomindia.com/renewables-struggle-demand-2023-report" target="_blank" rel="noopener">Despite global renewable power capacity reaching a record 536 GW in 2023, geopolitical conflicts, protectionism, and rising greenhouse gas emissions continue to pose significant risks</a> for the energy transition, according to the Renewables 2024 Global Status Report published by REN21. In 2023, the global investment in renewable power reached a record $622.5 billion, an 8.1% increase from the previous year​​. Wind and solar power have been at the forefront of this growth.

Daily News Wrap-Up: MNRE Portal to Verify DCR Content in Solar Modules

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					</table>Despite global renewable power capacity reaching a record 536 GW in 2023, geopolitical conflicts, protectionism, and rising greenhouse gas emissions continue to pose significant risks for the energy transition, according to the Renewables 2024 Global Status Report published by <a href="https://www.ren21.net/" target="_blank" rel="noopener">REN21</a>.
In 2023, the global investment in renewable power reached a record $622.5 billion, an 8.1% increase from the previous year​​. Wind and solar power have been at the forefront of this growth. Solar added 407 GW of new capacity, while wind power contributed 117 GW​​. Growth was driven by solar investment in China, significant additions in India and the U.S., and the EU&#8217;s push for offshore wind development.
Solar
In 2023, a record 407 GW of solar photovoltaic (PV) capacity was installed globally, bringing the total installed capacity to 1.58 TW. Low manufacturing costs, increased consumer demand, and policy incentives drove this growth. China led with 235 GW installed, accounting for 58% of the global total, followed by the US and India.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Solar-e1718944494588.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-67343 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Solar-e1718944494588.png" alt="REN21 Solar" width="752" height="512" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Solar-e1718944494588.png 752w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Solar-e1718944494588-300x204.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Solar-e1718944494588-650x443.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Solar-e1718944494588-624x425.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Solar-e1718944494588-600x409.png 600w" sizes="(max-width: 752px) 100vw, 752px" /></a>
Source: REN21
China led the world in new solar PV installations, contributing 235 GW, which accounted for 58% of the global total. This massive addition brought China&#8217;s cumulative solar PV capacity to at least 662 GW, representing 42% of the global total. The country&#8217;s solar PV capacity grew by a record-breaking 60% in 2023, more than doubling the previous five-year average growth rate of 26%.
The U.S. also saw significant growth in solar PV capacity in 2023, with 33.2 GW added, marking a 57% increase from 2022. This brought the country&#8217;s total installed capacity to 177 GW. The surge in installations was attributed mainly to the 2022 Inflation Reduction Act, which provided financial incentives for renewable energy projects of all scales.
In 2023, solar PV generation in the US reached 235 GWh, contributing 5.6% to the overall energy mix.
In India, solar installations dropped 44.1% in the calendar year 2023, , according to Mercom India&#8217;s <a href="https://www.mercomindia.com/product/q4-2023-india-solar-market-update" target="_blank" rel="noopener">Q4 &amp; Annual 2023 India Solar Market Update</a>. Large-scale solar installations saw a year-over-year drop of 50.8%.
Wind
In 2023, the world witnessed a remarkable addition of 117 GW of wind power capacity, marking a 12.8% increase and bringing the total operational capacity to approximately 1,021 GW.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Wind.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-67346 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Wind.png" alt="REN21 Wind" width="752" height="455" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Wind.png 752w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Wind-300x182.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Wind-650x393.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Wind-624x378.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Wind-600x363.png 600w" sizes="(max-width: 752px) 100vw, 752px" /></a>
Source: REN21
China&#8217;s wind power capacity saw a significant boost in 2023, doubling the previous year&#8217;s installations to exceed 75.6 GW. This included 69.3 GW of onshore and 6.3 GW of offshore capacity, making China responsible for 65% of the global wind power market, up from 48.5% in 2022.
The U.S. maintained its position as the second-largest market for wind power additions and cumulative capacity, adding 6.9 GW (net 6.6 GW) in 2023, bringing the total to 150.9 GW, almost entirely onshore.
According to the report, India climbed three spots to fifth place for new wind capacity additions in 2023, surpassing Germany. The country added 2.8 GW of wind power, a 52% increase from the previous year, bringing its cumulative capacity to 44.7 GW, all onshore. This was the strongest year for additions since India transitioned from a feed-in tariff system to reverse auctions in 2017. However, the focus on minimizing costs continued to strain investors and the domestic supply chain. Wind energy contributed approximately 4.8% to India&#8217;s total annual electricity generation.
Investments
Solar and wind power continued to dominate new investments in renewables in 2023. Solar accounted for 63% of the total investment, while wind power represented 35%, closely mirroring their shares from 2022. Solar investment grew by 12.5% to reach $392.7 billion, indicating a much slower growth rate than in 2021 (39%) and 2022 (44%). Nearly half of this investment occurred in China.
Wind power investment increased by 2.3% to $216.6 billion, a slowdown from the more robust growth seen in 2021 (11%) and 2022 (7%). However, investment in offshore wind power surged by 79% to $76.7 billion, offsetting a 17% decline in onshore wind power investment. China, the U.S., and the UK together accounted for 66.5% of global wind power investment in 2023.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Capacity-Additions-e1718944666539.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-67348 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Capacity-Additions-e1718944666539.png" alt="REN21 Capacity Additions" width="752" height="506" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Capacity-Additions-e1718944666539.png 752w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Capacity-Additions-e1718944666539-300x202.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Capacity-Additions-e1718944666539-650x437.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Capacity-Additions-e1718944666539-624x420.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Capacity-Additions-e1718944666539-600x404.png 600w" sizes="(max-width: 752px) 100vw, 752px" /></a>Source: REN21
Despite these advancements, the overall impact of reducing fossil fuel use has been limited. The incremental additions of renewable capacity have primarily addressed the increasing energy demand, leaving fossil fuel consumption largely unchanged.
Rising Energy Demand
According to the report, the relentless rise in global energy demand is one of the most significant challenges to the energy transition. From 2011 to 2021, the global energy demand increased by 39 exajoules, highlighting the enormity of the task.
Unfortunately, the growth in demand has been predominantly met by fossil fuels and traditional biomass, which accounted for 53% of the increase, while modern renewables contributed only 45%​​. This dynamic has maintained the world&#8217;s reliance on conventional energy sources, undermining efforts to reduce greenhouse gas emissions.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Energy-Demand.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-67350 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Energy-Demand.png" alt="REN21 Energy Demand" width="752" height="571" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Energy-Demand.png 752w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Energy-Demand-300x228.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Energy-Demand-650x494.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Energy-Demand-624x474.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/REN21-Energy-Demand-600x456.png 600w" sizes="(max-width: 752px) 100vw, 752px" /></a>Source: REN21
Electricity now constitutes 23% of the global energy supply, up from 19% a decade ago, reflecting a broader shift towards electrification in various sectors​​. Despite this increase, the renewable share of electricity has risen only modestly, from 29.4% in 2022 to 30.3% in 2023. This slight increase primarily covered the growing electricity demand rather than significantly reducing fossil fuel dependence​​.
Regional Disparities 
A significant barrier to a uniform global energy transition is the disparity in renewable energy investments across different regions. In 2023, China led global renewable energy investments, accounting for 44% of the total, followed by Europe at 20.9% and the U.S. at 15%​​. In stark contrast, Africa and the Middle East collectively accounted for just 3.6% of global renewable energy investments​​.
According to an International Energy Agency report, investment in fossil fuels <a href="https://www.mercomindia.com/clean-energy-investment-but-disparities-remain" target="_blank" rel="noopener">continues</a> to remain significant. Upstream oil and gas investment in 2024 is projected to return to 2017 levels, with Middle Eastern and Asian companies representing a significantly larger portion of this total.
Stagnation in Renewable Heat and Fuels
According to the report, the renewable heat sector has seen significantly slower progress than the electricity sector. From 2011 to 2021, the share of modern renewables in global heat supply increased only marginally from 8.9% to 11.6%​​. Modern bioenergy remains the primary source of renewable heat, accounting for 7.9%, while solar thermal and geothermal direct heat each contributed 1.4%​​. The rest is supplied by renewable electricity.
Similarly, the fuels sector has not seen the necessary advancements. Biofuels, nearly the sole renewable fuel source, have had limited growth. Although renewable hydrogen holds significant potential, its current impact is minimal. In 2023, the global capacity of electrolysis plants, essential for producing hydrogen from renewable electricity, grew to around 1.1 GW from 700 MW in 2022. However, more than 99% of hydrogen production is still based on fossil fuels​​.
Investment in Renewables Manufacturing
According to the report, investment in global manufacturing of renewable energy and enabling technologies surged by 70% in 2023, reaching nearly $200 billion. Solar and battery manufacturing installations dominated this growth, accounting for 95% of the total investment.
China contributed to three-quarters of the global investment in renewable and enabling technologies, down from 85% in 2022, due to significant increases in investments in the U.S. and Europe, particularly in battery manufacturing.
Investments in other clean energy technologies, including wind, heat pumps, and electrolyzers, represented a much smaller share, comprising around 7% in 2022 and dropping to 4% in 2023.
Investment in wind energy manufacturing, such as nacelle, blade, and tower production facilities, slightly declined in absolute terms in 2023, with China accounting for nearly all the investment in wind manufacturing facilities.
For electrolyzer and heat pump manufacturing, the EU and the U.S. collectively accounted for a larger share of the investment than China, with virtually no investments in these manufacturing technologies occurring elsewhere during the year.
The Path Forward
Energy transition requires more coordinated global efforts, according to the report. There is an urgent need for increased investments in renewable technologies and a more equitable distribution of resources to ensure that all regions can participate in and benefit from the energy transition. Robust policy measures and international cooperation will be crucial in overcoming economic and geopolitical barriers.
Innovations in bioenergy, solar thermal, geothermal, and renewable hydrogen technologies must be accelerated. Moreover, the global community must focus on reducing the cost of capital and creating favorable investment conditions in developing countries to enable a more balanced and inclusive energy transition.
According to IEA, the lack of <a href="https://www.mercomindia.com/global-energy-investment-over-next-decade/" target="_blank" rel="noopener">adequate</a> progress in the global energy transition will require even more investment, and a systematic change in the volume and type of investments is necessary to prioritize the transition. The agency found that global investment in energy transition technologies must quadruple to over $5 trillion annually to stay on the 1.5°C pathway.

Renewables Struggle to Meet Demand Despite Record 536 GW Capacity in 2023: Report

Solar PV auctions around the world in 2017 resulted in bids at new record lows, noted the annual Renewables Global Status Report (GSR) released by Renewable Energy Policy Network for the 21st Century (<a href="http://www.ren21.net/status-of-renewables/global-status-report/" target="_blank" rel="noopener">REN21</a>).
The report stated that Argentina, Chile, India, Mexico, Saudi Arabia and the Emirates of Abu Dhabi and Dubai (UAE) saw very low bids for solar PV in 2017. Around the world, low bids were due to a variety of factors including: the low cost of components, expectations that technology costs would continue to fall, increased competition among developers, and a relatively low weighted average cost of capital due to declining risk perception.
Further, in some countries, bids have become increasingly competitive due to expected low operating costs in locations with excellent solar resources and, in some cases, the necessity to compete with low wholesale electricity prices. Downward pressure on prices and slim margins made 2017 another challenging year for many solar manufacturers and developers, causing further consolidation in the industry, observed the report.
In India, solar PV bid prices fell to new lows in early 2017, due to intense competition caused by slowing demand, and to the expectation that <a href="https://mercomindia.com/solar-module-prices-india-q4-2017/" target="_blank" rel="noopener">module prices</a> would continue to fall. Record-low winning bids brought the price of new solar PV to half that of new coal and even below that of existing coal plants, leading to the suspension or cancellation of tenders for new coal capacity. However, high demand in China and the United States, coupled with a reduced supply of polysilicon in China, made it difficult to secure solar panels and pushed up prices in India from May 2017 onwards.
In discussing the spectacular year for solar in India, the report also made a cautionary note stating that renewables are losing their share in the global energy mix as booming economies and rising populations drive a soaring demand for power.
The report highlighted that the energy demand grew by 2.1 percent and energy-related carbon dioxide emissions were up by 1.4 percent in 2017, a substantial rise for both for the first time in four years. Renewable energy uptake has been unable to keep up in the face of continuing investment in fossil fuel and nuclear capacity, it said.
Mercom previously <a href="https://mercomindia.com/solar-power-growth-yoy-2017-18/" target="_blank" rel="noopener">reported</a> that renewable energy capacity additions accounted for 20.32 percent of India’s capacity mix at the end of financial year (FY) 2017-18. This is a substantial increase from the previous <a href="https://mercomindia.com/renewable-energy-accounted-17-5-percent-indias-energy-mix-fy-2016-17/" target="_blank" rel="noopener">17.5 percent</a> share reported at the end of FY 2016-17, mainly due to the growth in solar.
The emerging economies account for a large share – approximately 63 percent – of the overall investment into the market, with China alone making up 45 percent, according to the report.
<a href="https://mercomindia.com/un-report-india-renewable-investments/" target="_blank" rel="noopener">Earlier, a United Nation’s report</a> highlighted that developing countries increased their renewable energy investments by more than $74.3 billion to $177.1 billion in 2017.
An Energy Economics and Financial Analysis (<a href="http://ieefa.org/" target="_blank" rel="noopener">IEEFA</a>) <a href="https://mercomindia.com/five-solar-parks-ieefa-report/">report</a> recently listed 14 of the largest under-construction utility solar projects in the world, of which five are located in India. These are: Bhadla Industrial Solar Park (2,225 MW), Pavagada Solar Park (2 GW), Ananthapuramu – I Solar Park (1.5 GW), Kadapa Ultra Mega Solar Park (1 GW), and Rewa Solar Park (750 MW).
Recently, Mercom reported about <a href="https://mercomindia.com/major-policy-change-china-affect-global-solar/" target="_blank" rel="noopener">China&#8217;s</a> plans to impose installation caps and reducing the feed-in tariff (FiT) for its solar projects. In 2017, China was the largest solar market in the world with 53 GW of solar installed. Due to the sheer size of the market, any major policy changes will impact not only China, but the rest of world in 2018.
Image credit: Azure Power

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