Zero-Carbon Energy Hits 40% of Global Power in 2023

Highlights

• Zero-carbon tech hit 40% of global electricity in 2023.
• Renewables (wind and solar) 17%, hydro and nuclear 24%.
• Fossil fuels 57% of global electricity.
• Solar and wind dominated new capacity additions in 2023. Global wind capacity topped 1TW.

In 2023, zero-carbon tech hit 40% of global electricity for the first time, according to BloombergNEF’s latest report. Renewables (wind and solar) 17%, hydro and nuclear 24%. Fossil fuels (coal and gas) 57% of global electricity.

Meredith Annex, BNEF’s head of clean power, said: “Renewables have been growing every year, and this year we hit several milestones that seemed unachievable. One was that solar and wind made up over 90% of global capacity additions this year, up from 2022. And global wind capacity topped 1TW, and Brazil got to 88% renewable power, the cleanest power mix among the G-20.

Annex said: “This is the result of the growing investment in solar, which has been remarkable. China accounted for nearly a third of the world’s renewable energy last year and reached its 2030 wind and solar targets 6 years early. China is also phasing out new coal power plants. Analysts think China may peak fossil fuel this year, and with that comes a decline in emissions and that’s a turning point given China is the largest emitter.”

Despite all this, global commitments are not enough to reach 1.5°C of the Paris Agreement. The IEA says advanced economies need to cut emissions by 80% by 2035 to meet that target. At COP28, countries agreed to triple renewable energy by 2030, but BNEF says that will require 1.6 times more renewable investment from 2024 to 2030.

So far, global investment in renewables has been flat, with $313 billion in H1 2024, the same as 2023. Annex said: “Steady is good but not enough for net zero.” The US has increased average spending by 63% since the 2022 Inflation Reduction Act, which provides subsidies and tax incentives for decarbonisation. Chinese investment is down 4% due to lower equipment costs, but demand for renewables is still strong.

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Source: WSJ