Solar PV power dominates renewable electricity capacity expansion globally, according the latest report from the International Energy Agency, October 8. Renewable capacity additions of 178 gigawatts in 2017 broke another record, accounting for more than two-thirds of global net electricity capacity growth for the first time. Solar PV capacity expanded the most (97 GW), over half of which was in China. Meanwhile, onshore wind additions globally declined for the second year in a row, and hydropower growth continued to decelerate.
Solar PV capacity is forecast to expand by almost 600 GW – more than all other renewable power technologies combined, or as much as twice Japan’s total capacity, reaching 1 terawatt by the end of the forecast period. Despite recent policy changes, China remains the absolute solar PV leader by far, holding almost 40% of global installed PV capacity in 2023. The United States remains the second-largest growth market for solar PV, followed by India. PV capacity in India is projected to quadruple.
Wind remains the second-largest contributor to renewable capacity growth, while hydropower remains the largest renewable electricity source in 2023. Similar to last year’s forecast, wind capacity is expected to expand by 60%. Meanwhile, spurred by technological progress and significant cost reductions, offshore wind capacity triples, with growth moving beyond Europe to Asia and North America.
Even with renewable energy technologies becoming increasingly competitive, appropriate policies and market design are critical. Under an accelerated case, which assumes greater supportive government measures, the expansion of renewables in electricity and in transport could be 25% higher.
While the growth in solar PV and wind is expected to continue in the electricity sector, globally, bioenergy remains the largest source of renewable energy because of its widespread use in heat and transport, sectors in which other renewables currently play a much smaller role.