Renewable Energy Demand Soars Amid Solar Boom and Surging Fuel Prices

According to a new report, the world is on track to add a record amount of renewable electricity capacity this year as governments and consumers seek to balance rising energy prices and capitalize on the solar power boom.

High fossil fuel costs, resulting from Russia’s invasion of Ukraine, and concerns about energy security, as highlighted by the International Energy Agency, have accelerated the development of solar and wind power projects, expected to reach 440 gigawatts in 2023.

The Paris-based agency estimates this to be approximately a third more than the capacity added in the previous year, bringing the total installed capacity to 4,500 GW, equivalent to the combined power output of the United States and China.

The increase in renewable energy capacity this year will largely be driven by photovoltaic systems, with both large-scale solar farms and residential rooftop installations experiencing robust growth.

The IEA also reported a rise in the manufacturing capacity for photovoltaic components, particularly in China.

However, a warning has been issued regarding the need to improve and expand power grids due to the intermittent nature of solar and wind generation. This calls for network operators to adopt a fundamentally different strategy compared to existing coal, gas, or nuclear facilities.

Shifting the global economy away from fossil fuels is one of the most crucial steps in reducing greenhouse gas emissions that contribute to global warming.

Experts emphasize the need to cut emissions by half by 2030 and achieve ‘net zero’ by the mid-century to fulfill the goals of the Paris Climate Agreement, which aims to limit temperature increases since pre-industrial times to 1.5 degrees Celsius (2.7 degrees Fahrenheit).

The International Renewable Energy Agency has also called for a significant increase in investment in wind and solar energy. Discussions on creating an international goal for renewable energy adoption are expected to take place at this year’s UN climate meeting in Dubai.

For feedback and suggestions, please contact us at editorial@iifl.com.