More than 100GW of global renewable energy capacity is expected to be tendered in 2024, according to new analysis from Wood Mackenzie.
With more than 60GW to be offshore wind, the overall volume is set to grow as the year progresses and will match 2023 levels.
“Government tenders are a primary support scheme for renewable energy deployment across the world,” said Ana Fernandez Garcia, senior research analyst at Wood Mackenzie, and lead author of the report.
“Tenders have increased each year, and Wood Mackenzie expects to see some big rewards in 2024 – the EMEA region will hold more than 50% of expected tenders, mostly for offshore wind capacity.
“Individual major markets, such as China, will continue to dominate. So far, Germany has announced renewable energy rounds for 25GW for this year, and China is at 17GW in offshore wind.”
In 2023, 137GW of renewable energy capacity was awarded globally through government tenders. This is a 10% increase year-on-year, despite sector cost headwinds, logistics tensions, and the energy crisis.
Offshore wind, onshore wind, and solar PV account for nearly 91% of the allocated volume.
The remaining 9% was awarded to hydro, biofuel, geothermal, solar thermal and tidal technologies.
“Onshore wind capacity awarded in tenders rebounded in 2023, but it was overshadowed by a drop in solar PV,” said Fernandez Garcia.
“The higher share of wind was caused by increased competitiveness and policymakers’ interest in boosting its deployment as a key industry for job creation and economic development.
“A great example of this is the EU’s Wind Action Plan.”
Solar PV capacity was the most awarded through government tenders, accounting for 44% of the total volume with 61GW, dropping from a 59% share in 2022.
It was followed by onshore wind with 24%, or 34GW, while offshore wind accounted for 23% (31GW), growing for the third consecutive year.
The Asia Pacific region received 67% of the contracts at approximately 90GW, keeping the leading position, followed by EMEA at 37 GW (27%), while almost 10GW was allocated in the Americas (7%), stated the report.
In terms of capacity awards, China led the way in 2023 with more than 55GW allocated through 49 renewable energy tenders.
India awarded 20GW over 55 tenders, followed by Germany, which awarded 19GW through 11 rounds.