GWEC reviews the global renewable energy transition in 2023
It has become clear that the renewable energy transition is no longer just about climate change, but a means of creating energy security and availability across the globe.
The most recents events to take place have disrupted the market, influencing higher prices and reduced availability of necessary resources, all supplied through legacy means of distribution. More countries are looking to reduce their dependence on global fossil fuel stocks and bring their energy needs closer to home.
Wind energy and solar power are the dominant forces in enabling this change. According to the International Energy Agency (IEA), a further 2,518 TWh of energy generation capabilities will be included in the current market leading up to 2025 with an emphasis on these two types—solar being a powerful force already and offshore wind also playing a critical role in the transition.
The Global Wind Energy Council (GWEC) also reports that wind energy capacity is set to increase by 680 gigawatts (GW) from 2023 to 2027 with China taking the majority share and Europe following with 100 GW of new wind energy. Some of the key areas of the globe transitioning to wind power include the US, Brazil, Europe, China, India and Australia.
Being one of least developed economically, Brazil’s government is shifting its means of energy funding, by moving away from auction-based sales to power purchase agreements (PPAs).
Wind energy developments meeting the demand for renewables
The world must return its focus to renewables. With only a short-term regression to fossil fuels, carbon emissions impact was significant, which emphasises the demand across organisations. The REPowerEU programme has pledged allegiance to the task as it looks to build the continent’s resilience to energy disruption—forced upon the globe as a result of the Russia-Ukraine conflict.
In the US, the Inflation Reduction Act (IRA) will support efforts to develop its energy grid and increase energy storage capacity and efficiency. Meanwhile, in China plans were agreed for emissions reduction efforts for the five-year period leading to 2025 in an effort to peak carbon emissions before 2030.
Blame supply chain disruption for climate setbacks
There is one further factor—which can be broken down to multiple factors—that is impacting the rate of change. Supply chain issues not only create delays in the supply of energy, but also components in the making of new energy infrastructure, such as turbine blade materials, generators, and gearboxes. These are the few areas detailed by the GWEC in its report.
It seems much of the capacity for developing and delivering the necessary components for energy transition lies with China, therefore making it no surprise that the country will see immense growth on its wind energy infrastructure over the next few years. China also dominates the market for mining of rare earth minerals used in wind energy.
To discover more insights into the renewable energy sector—specifically the current state of the wind energy market—check out the full 2023 report by the GWEC, HERE.
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