IEA report forecasts big growth for renewable energy this year

The International Energy Agency (IEA) expects the global expansion of renewable electricity capacities to increase by a third this year.

Increasing political momentum, higher fossil fuel prices and concerns about energy security are fuelling increased deployment of photovoltaic energy production and wind turbines, the IEA said in a report presented in Paris on Thursday.

The organization has revised its forecast for the expansion of renewable energies upward by 40% since Russia launched its invasion of Ukraine in February 2022, which sent global energy prices soaring.

The IEA expects the largest-ever absolute increase in renewable electricity generation in 2023. The growth will continue next year when the total global renewable energy capacity increases to 4,500 gigawatts (GW), equivalent to the combined electricity generation of China and the U.S., it said.

"The global energy crisis has shown renewables are critical for making energy supplies not just cleaner but also more secure and affordable – and governments are responding with efforts to deploy them faster," said IEA Director Fatih Birol.

However, Birol said power grids must be modernized and expanded to fully exploit the enormous potential of solar and wind energy.

Growth in solar energy systems will account for two-thirds of the increase in renewable power generation capacity this year, according to the IEA analysis, and will continue to grow until 2024.

The IEA expects wind turbine generation to grow by 70% in 2023, breaking years of sluggish growth. The coronavirus pandemic and supply chain problems had previously delayed wind projects in the U.S., Europe and China.