The development of clean energy projects dominated power construction in 2024, as renewable energy accounted for record levels of electricity generation. Clean energy has taken over fossil fuels in terms of new annual additions to the grid by far. The variety of new clean energy additions is also expanding, ranging from solar, wind, and hydropower to nuclear power and several emerging energy sources.
New Clean Energy Additions
According to the International Renewable Energy Agency (IRENA), over 90% of the new energy capacity built globally in 2024 was clean and included massive solar, wind, and other renewable energy developments. This development has been supported by the falling costs of renewable energy as well as the rollout of decarbonization policies across several parts of the world.
While some countries are continuing to invest in new oil and gas development, renewable energy has dominated new energy development globally for several years. Renewable energy sources have contributed over half of new energy generation additions to grids worldwide since 2012. However, the speed at which new clean energy capacity is being deployed is now growing at an unprecedented rate.
In 2024, more than 585 gigawatts (GW) of new clean energy was developed, of which over three-quarters was solar power. Conversely, just 47 GW of non-renewable power generation was added worldwide.
The world still depends heavily on fossil fuels for power, heating, and industrial activities. However, the contribution of renewable energy to the power sector is increasing significantly year on year. Renewable resources generated approximately 32% of global electricity last year, a figure that rises to around 40% if nuclear power is included in the clean energy mix, marking a record high.
“The continuous growth of renewables we witness each year is evidence that renewables are economically viable and readily deployable,” said IRENA Director-General Francesco La Camera. “Each year they keep breaking their own expansion records, but we also face the same challenges of great regional disparities and the ticking clock as the 2030 deadline is imminent.”
Solar Power
Solar power has helped drive the green transition, with both solar generation and capacity installations setting new records in 2024. Solar generation has doubled globally over the last three years to reach over 2000 Terawatt hours (TWh). It was the largest source of electricity generation globally for the third consecutive year and the fastest-growing source of electricity for the 20th year in a row, according to Ember Energy data. China contributed over half of the increase in solar generation, with around 53%.
There are several new demand drivers for solar power, including electric vehicles, heat pumps, and data centers, which are contributing 0.7% to annual demand growth, almost double that of five years ago.
The solar energy market is expected to generate a revenue of $541.84 billion globally by 2031, growing at a compound average growth rate (CAGR) of 19.68%, according to a Verified Market Research forecast.
Wind Energy
Last year was a record year for wind energy installations. Around 117 GW of new wind energy capacity was installed across the world, including 109 GW of new onshore wind and 8 GW of offshore wind, according to an April Global Wind Energy Council’s flagship Global Wind Report. A few key markets, such as China and Europe, dominated this growth.
The total global wind energy capacity rose to 1,136 GW, with wind farms across all continents. A total of 55 countries installed wind turbines last year. The top five wind capacity additions in 2024 were in China (79.8 GW), the U.S. (4 GW), Germany (4 GW), India (3.4 GW), and Brazil (3.3 GW). China now has a huge wind energy capacity of 520.6 GW.
The Asia-Pacific region experienced a 7% year-on-year growth rate, while Africa and the Middle East region saw a 107% year-on-year growth rate, largely due to Egypt installing 794 MW and Saudi Arabia adding 390 MW.
The report foresees a CAGR of 8.8% for the wind industry, which would mean a further 981 GW of wind energy capacity added globally by 2030.
Other Clean Energy Additions
The capacity of several other clean energy sources increased last year. There was 1,283 GW of hydropower, 151 GW of bioenergy, 15 GW of geothermal energy and 1 GW of marine (tidal) power added globally in 2024.
Six new nuclear power plants were commissioned globally last year, while four older plants were decommissioned. The new reactors are expected to have a total capacity of 6.8 GW and will be located in the United Arab Emirates (Barakah-4, 1,310 MW), China (Fangchenggang-4, 1 GW and Zhangzhou-1, 1.1 GW), India (Kakrapar-4, 630 MW), France (Flamanville-3, 1.6 GW) and the U.S. (Vogtle-4, 1.1 GW).
As countries worldwide strive to increase their clean energy capacity to reduce their dependence on fossil fuels in pursuit of a green transition, the rapid expansion of the world’s green energy capacity is expected to continue for decades to come. Meanwhile, the expansion of the fossil fuel industry is expected to be much more moderate, eventually falling as more renewable energy becomes available.
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