According to Renewable Energy Market Update – June 2023 of International Energy Agency (IEA), the Global renewable capacity additions are set to increase by 107 gigawatts (GW), the largest absolute increase ever, to more than 440 GW in 2023.
- The growth in renewable capacity is fueled by the expanding policy support, growing energy security concerns and improving competitiveness against fossil fuel alternatives.
i.Solar photovoltaic (PV) capacity, including both large utility-scale and small distributed systems, accounts for two-thirds of 2023’s projected increase in global renewable capacity.
ii.Solar PV additions will continue to increase in 2024 while challenges remain for wind expansion. Without rapid policy implementation, the global onshore wind additions in 2024 are expected to fall by around 5% from 2023 levels.
iii.Global renewable capacity additions could reach 550 GW in 2024 in our accelerated case, almost 20% higher than in the main forecast.
iv.China’s contribution to global renewable capacity additions is expected to increase in 2023 and 2024, consolidating its position as the undisputed leader in global deployment.
i.India’s renewable capacity additions are expected to increase again in 2023 and 2024, owing to faster onshore wind, hydropower and distributed solar PV deployment.
ii.The utility-scale solar PV capacity additions (made up mainly of capacity awarded in auctions) of India in 2022 reached to 14 GW, accounting for over two-thirds of RE growth in India.
iii.The lower auction volumes and supply chain challenges in 2023 indicates that slowdown of almost 20% is probable, with a possible recovery in 2024.
- The auction volumes dropped by one-third in 2022, only 10 GW was awarded (lowest amount since 2017).
iv.In March 2023, the government of India ordered federal agencies to increase auction capacity to 50 GW annually starting in FY 2023-2024. This will lead to higher deployment beyond 2025.
v.India aims to expand its domestic manufacturing prompts the supply-demand mismatch and higher prices in the short term, affecting PV expansion in 2023 and 2024.
- Previously, India has imported almost 90% of its solar PV modules from China. IEA states that two rounds of the production-linked incentives (PLIs) for PV manufacturing will allow India to become fully self-sufficient in terms of solar PV supply in the next 4 to 5 years.
vi.Wind power capacity additions are forecast to grow by almost 70% in 2023 year-on-year
Recent Related News:
The International Energy Agency (IEA) claimed in its country report titled “LiFE lessons from India -The benefits of advancing the Lifestyle for Environment (LiFE) initiative through the G20” that if adopted worldwide, the measures specified under the LiFE initiative could save consumers around USD 440 billion in 2030, corresponding to around 5% of total fuel spending across the global economy that year.
About International Energy Agency (IEA):
Executive Director– Dr. Fatih Birol
Headquarters- Paris, France