Theglobal renewable energy marketis experiencing rapid growth, driven by expanding policy support, increasing energy security concerns, surging energy consumption, and improved competitiveness compared to fossil fuel alternatives. These positive factors are overcoming challenges like rising interest rates, higher investment costs, and persistent supply chain issues.
Nevertheless, certain factors, including slow permitting processes, supply chain constraints, volatile commodity prices, and insufficient investment in grid infrastructure, act as restraints on the market's growth.
In 2022, overall renewable power capacity additions increased by almost 13% to nearly 340 GW. However, solar PV was the only technology that set a deployment record last year, with net additions of nearly 220 GW, marking a 35% increase from 2021. Expansions in China and the European Union alone accounted for over 85% of the growth in annual PV capacity additions.
Annual PV growth increased in all major markets last year except the United States, where it contracted by almost 15% due to supply chain challenges and rising costs. After solar energy, hydropower emerged as the next-largest contributor to record-level renewable energy expansion globally, driven by the commissioning of multiple large projects, mostly in Asia.
In contrast, wind power additions experienced a decline of 21% from 2021 to 2022, marking the second consecutive year of decline following record-level expansion in 2020. During that year, developers in China were rushing to complete projects before subsidies from the central government ended. In 2022, COVID-related restrictions delayed the commissioning of multiple wind energy projects in China, resulting in a drop in annual additions.
Governments worldwide are establishing renewable energy targets and implementing policies that indirectly foster the adoption of renewables. These policies encompass climate change initiatives, economic and green recovery plans, the phasing out of fossil fuels, and targets for achieving net-zero greenhouse gas emissions. The impact of these policies extends to both the demand and supply sides of the renewable energy market.
These policies establish more favorable market conditions for renewables, fostering innovation, reducing costs and emissions, creating economic opportunities, and enhancing global energy security. Recent events, such as the Russian Federation's invasion of Ukraine and rising inflation, have prompted policymakers to prioritize energy security. This has resulted in many comprehensive policies across the globe.
Solar power marketis taking the lead in the global renewable energy landscape regarding capacity additions. Solar PV emerged as the sole technology that set a deployment record last year, achieving net additions of nearly 220 GW, marking a 35% increase from 2021. The substantial growth in annual PV capacity additions was predominantly driven by expansions in China and the European Union, contributing to over 85% of the overall increase.
The new report from Blackridge Research on Global Renewable Energy Market comprehensively analyses the Renewable Energy Market and provides deep insight into the current and future state of the industry.
The study examines the drivers, restraints, and regional trends influencing Global Renewable Energy Market demand and growth.
The report also addresses present and future market opportunities, market trends, developments, and the impact of Covid-19 on the Renewable Energy Market, important commercial developments, trends, regions, and segments poised for fastest growth, competitive landscape, and market share of key players.
Further, the report will also provide Renewable Energy Market size, demand forecast, and growth rates.
Blackridge Research & Consulting is a premier market research and consulting organization covering the Global energy transformation. We provide objective, independent and holistic view of the markets and present critical insights that are essential not only to help you make better business decisions but also to develop transformational business growth strategies.
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