Rapid Rise: IEA's Insights into Global Clean Energy Growth

In its first edition of the Clean Energy Market Monitor, the International Energy Agency (IEA) highlighted global progress across six key renewable energy segments:

1. Solar PV
2. Wind
3. Nuclear
4. Electric Cars
5. Electrolysers
6. Heat Pumps

From 2019 to 2023, clean energy investment increased by nearly 50%, reaching USD 1.8 trillion in 2023. Annual additions of solar PV and wind grew by 85% and 60% respectively, with capacity additions for these technologies totaling almost 540 GW.

China and advanced economies accounted for 90% of the capacity additions for wind and solar PV, and over 95% of global electric car sales (with segment growth reaching 35% globally).

Hydrogen electrolyser capacity additions grew by 360% in 2023, albeit from a low starting point, driven largely by China as the European Union (EU) relinquished its leading position.

Despite these advancements, energy intensity improved by only around 1% in 2023, four times lower than the COP28 pledge.

Key highlights of each segment include:

SOLAR PV:

• Global solar PV capacity additions increased by over 80% from 2022 to 2023, setting a new record at over 420 GW. China alone accounted for more than 80% of this global increase.
• In the EU, annual solar PV additions rose by 25% to a record 52 GW in 2023, while India added 12 GW, one-third lower than in 2022.
• In the US, solar PV capacity additions increased by 50% year-over-year following the resolution of supply chain issues that hindered growth in 2022.
• Globally, the deployment of solar PV over the past five years has annually avoided approximately 1.1 Gt of emissions, equivalent to Japan's entire annual energy sector emissions.

WIND ENERGY:

• Global wind capacity additions surged nearly 60% in 2023, surpassing the 2020 record. Onshore wind projects accounted for over 85% of this growth.
• China led global wind expansion with over 60% of the global total, nearly doubling its additions compared to 2022.
• In the EU, wind additions increased by less than 10% in 2023, with onshore wind deployment slowing. The US experienced a decline of more than 25% in wind additions compared to 2022.
• Offshore wind outside of China faces challenges, with investment costs now more than 20% higher than just a few years ago.

NUCLEAR ENERGY:

• Nuclear power remains a significant low-emissions source, providing 9% of global electricity.
• Emerging markets and developing economies accounted for three-quarters of new nuclear capacity added from 2019 to 2023.
• China led with 11 GW added over five years, one-third of the global total, marking a shift in nuclear market leadership.
• Advanced economies added nearly 8 GW, constituting 25% of the global total, further highlighting market dynamics.

ELECTRIC CARS:

• Global sales of electric cars reached approximately 14 million in 2023, accounting for nearly one-fifth of total car sales. Sales were 35% higher than in 2022 and over six times higher than in 2019, with an average annual growth rate of 60% since 2019.
• China remains the largest market with over 8 million electric cars sold in 2023, representing almost 60% of global sales.
• The EU is the second largest market with around 2.4 million electric cars sold, comprising one-quarter of total sales, marking a 20% increase from the previous year.
• The US ranks third with 1.4 million electric cars sold in 2023, a 40% increase from 2022, equating to one-tenth of total car sales.
• India has seen rapid growth in electric car sales, though still a small share globally, with sales increasing four-fold from 2021 to 2022 and another 70% in 2023.

HYDROGEN ELECTROLYSERS:

• Global installed capacity of water electrolysis for hydrogen production surpassed 1 GW in 2023, marking a significant milestone in energy landscapes with about 1.3 GW installed. This addition nearly matched cumulative global capacity up to 2022.
• China, accounting for less than 10% of global capacity in 2020, emerged as a dominant force, reaching over 650 MW by end-2023, nearly half of global capacity.
• The EU, once a leader, now holds a diminished position with additions just surpassing 70 MW in 2023. The US emerged as the third largest market with additions exceeding 30 MW.

The deployment of these key clean energy technologies from 2019 to 2023 has avoided annual fossil fuel energy demand of around 25 EJ, equivalent to 5% of total global fossil fuel demand in all sectors in 2023 or the combined total energy demand of Japan and Korea from all sources last year.

Conclusion 

IEA's 2023 Clean Energy Market Monitor highlights robust growth in solar, wind, nuclear, electric cars, electrolyzers, and heat pumps. This surge signifies a global shift towards sustainable energy solutions, though challenges persist. As investments soar and technologies evolve, international cooperation and forward-thinking policies remain pivotal in advancing our transition to a cleaner, greener future.