More than 40% of global electricity was carbon-free in 2023
Solar

More than 40% of global electricity was carbon-free in 2023

A pair of new reports published by BloombergNEF (BNEF) include an impressive milestone: for the first time, more than 40% of global electricity came from zero-carbon sources in 2023. Hydropower accounted for 14.7%, wind and solar combined for nearly 14% (a new record), and nuclear 9.4%.

According to Power Transition Trends 2024 and the 2H 2024 Renewable Energy Investment Tracker, wind and solar represented nearly 91% of net new power capacity additions in 2023 – up from 83% the year before – while fossil fuels including coal and gas represented just 6% of net new build – the lowest level ever.

Since the Inflation Reduction Act became law, the United States has seen half-annual investment levels rise 63%. The U.S. is the second-largest global market behind still-dominant China, which accounted for nearly one-third of all global renewable energy output, per the reports. Ten nations accounted for almost three-quarters of total renewable energy generation in 2023- Brazil, Canada, and India join China and the U.S. in the top five.

“We have seen a step-change in renewable energy compared to a few years before. There’s now no question this is the largest source of new power generation, wherever you go.” said Sofia Maia, the lead author of Power Transition Trends 2024.

Among other findings highlighted in Power Transition Trends, the total global power-generating capacity reached 8.9 terawatts in 2023. Wind power alone now accounts for 1 terawatt of installed capacity. Solar is also surging, with 428 GW of net capacity added in 2023, bringing us to 1.6 terawatts globally.

$313 billion was invested globally in renewable energy in 1H 2024, roughly matching the first half of 2023. The reports’ authors suggest that means the sector as a whole is maintaining momentum.

“Oil majors may be reducing their focus on renewable energy, but this hasn’t made a dent in global investment.” said Meredith Annex, lead author of Renewable Energy Investment Tracker. “It’s clear that if there are projects ready and able to move forward, the capital will come. The focus should be on simplifying wind and solar development around the world.”

According to BNEF’s research, solar investment in the first half of 2024 remained up year-over-year, reaching $221 billion for utility-scale and small-scale assets. However, the growth rate shows signs of slowing as cheaper modules mean that the same amount of capacity requires less investment and as grid bottlenecks start to take hold in some markets. Southwest Power Pools, for example, recently requested to postpone its 2024 generator interconnection queue to sort out previous clusters.

Wind investment in the first half of 2024 reached $90.7 billion, down 11% from the same period last year. Offshore wind, where investments are driven heavily by government-led auction calendars, was particularly down. BNEF maintains that onshore wind faces frequent permitting and grid interconnection challenges, noting wind projects are still moving forward, but the industry has struggled to achieve the same step-change in deployment as solar.