In 2023 wind and solar represented nearly 91% of net new power capacity additions in 2023 up from 83% the year before, according to BloombergNEF (BNEF).
For the first time ever, zero-carbon sources made up over 40% of the electricity the world generated in 2023, with hydropower accounting for 14.7%, wind and solar contributing 13.9% – a new record high – with nuclear making up the rest.
Moreover, the renewable energy industry looks set to repeat a similar feat again in 2024, as renewable energy projects secured $313bn of new investment in the first half of the year, on par with the first half of 2023.
These findings emerge from two reports published by BNEF, Power Transition Trends 2024, and the 2H 2024 Renewable Energy Investment Tracker, which indicate that momentum towards clean power has also accelerated.
Despite seeing a 4% decline on the back of cheaper equipment, China continues to dominate new renewable energy investments.
The US was the second largest market in the first half of 2024 and has seen half-annual investment levels rise 63% since the Inflation Reduction Act passed.
Pakistan skyrocketed to be the fifth-largest market for new solar investment, up from fourteenth in the same period last year.
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, a historic milestone.
However, the wind sector’s achievement is eclipsed by surging solar deployment, with a net 428 gigawatts of solar capacity added in 2023, up 76% year-on-year, to bring the total global installed solar fleet to 1.6 terawatts.
BNEF’s research shows that solar and wind are performing differently so far in 2024.
Solar investment in the first half of 2024 remained up year-on-year, reaching $221bn 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.
Wind investment in the first half of 2024 reached $90.7bn, down 11% from the same period last year. Offshore wind, where investments are driven heavily by government-led auction calendars, was particularly down.
Meanwhile, onshore wind faces frequent challenges around permitting and grid interconnection.
Wind projects are still moving forward, but the industry has struggled to achieve the same step-change in deployment as solar.
“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.”