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Europe, US, China: Where will the most wind and solar power be installed in 2023?

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by Isabella O’Malley, Jennifer McDermott, Alexa St. John and AP

This year has seen record solar power generation and “significant changes” in battery production.

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The world added renewable energy at breakneck speed in 2023, led by new solar power.

If this trend grows, it will move the planet away from fossil fuels and help prevent severe global warming and its effects.

Clean energy is now often the cheapest option, which explains some of the growth. Countries have also adopted policies to support renewable energy, citing energy security concerns, according to the International Energy Agency. These factors were in opposition to high interest rates and continued challenges in obtaining materials and components in many locations.

The IEA predicts that more than 440 gigawatts of renewable energy will be added in 2023, more than all the installed electricity in Germany and Spain combined.

Let’s take a look back at this year for solar, wind, and batteries.

A record year for solar power

China, Europe, America each set Sun According to the International Renewable Energy Agency (IEA), this is the record for installations in a single year.

China’s additions will be between 180 and 230 gigawatts, depending on the results of year-end projects, far less than other countries’ additions. Europe added 58 gigawatts, a 40% increase from 2022.

Sun It is currently the cheapest form of electricity in the majority of countries. In Europe, solar panel prices have fallen by 40-53% from December 2022 to November 2023, and are now at record lows.

“The scale of deployment is increasing at breakneck speed, especially in Europe,” said Michael Taylor, senior analyst at the International Renewable Energy Agency (IRENA).

When the final numbers for 2023 come out. solar energy It is expected to surpass hydropower in terms of total global capacity, but in terms of actual electricity produced, hydropower will still lead for some time as it can produce around the clock.

In the United States, California continues to provide the most solar energy, followed by Texas, Florida, North Carolina, and Arizona.

Daniel Bressett, director of the Institute for Environmental and Energy Research, a nonprofit education and policy group, said both state and federal incentives have had a big impact on the growth of solar power in the United States.

Despite the success of solar power in 2023, there are hurdles. While interest rates are rising, there is a shortage of transformers, Bresset said.

In the United States, solar power manufacturing has grown as well. “We have seen the impact firsthand. inflation control law In terms of driving investment…more than 60 solar manufacturing facilities have been announced in the past year,” said Abigail Ross Hopper, president and CEO of the Solar Energy Industry Association.

Wind energy challenges

By the end of 2023, the world will have enough added wind energy It was a record year, providing electricity to approximately 80 million households.

As with solar power, most of the growth, more than 58 gigawatts, was added in China, according to Wood Mackenzie research. China is on track to exceed its ambitious 2030 target of 1,200 gigawatts of utility-scale solar PV and power generation. wind power If all planned projects are built, production capacity will be five years ahead of schedule, according to Global Energy Monitor.

China is one of the few growing markets for wind power this year, according to the World Wind Energy Council.Expedited permitting and other improvements in key markets Germany India also helped add wind energy. However, Wood Mackenzie said installations in Europe were down 6% compared to the previous year.

Short-term challenges such as high inflation, rising interest rates, and rising costs of construction materials are forcing some offshore wind operators to renegotiate or cancel project contracts, and some onshore wind operators are has been postponed to 2024 or 2025.

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The economic headwinds come at a difficult time for the nascent U.S. offshore wind industry, which is ramping up the nation’s first commercial-scale power generation. offshore wind farm. Construction of two buildings began this year. Both are targeted to open in early 2024, and one is already transmitting power to the U.S. grid. Large offshore wind farms have been producing electricity for 30 years in Europe and more recently in Asia.

After years of record growth, industry group American Clean Power predicts that the amount of onshore wind power added will decline in the future. America By the end of the year, there will be enough to power 2.7 million to 3 million homes. The group says developers are taking advantage of new tax credits passed last year. inflation control law, But it takes years to bring a project online. Since the passing of the IRA, clean energy investments have been announced at $383 billion (€344 billion), the report said.

“We’re talking about 2023 as essentially a year of underperformance, but in the grand scheme of things, 8 to 9 gigawatts is still an exciting number. Lots of new clean energy added to the grid. ,” said John Hensley, vice president of research and analysis at ACP.

This year as well, the strength of wind power has slowed down worldwide. This year’s top three markets remain China, the US and Germany for onshore wind energy. England Offshore is Germany.

Analysts predict that next year, as the global industry recovers, the availability of wind energy around the world will increase by nearly 12%.

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In June, the industry celebrated installing more than 1 terawatt of wind energy around the world. It took more than 40 years to reach this milestone, but at the industry’s current pace, it could take him less than 7 years to reach 2 terawatts.

A big year for batteries

As efforts continue to reduce the climate impact of transportation, the global electric vehicle trend is expected to accelerate in 2023, with one in five cars sold this year expected to be electric. . Electrical, according to the International Energy Agency. In other words, this year is a new big year for batteries.

More than $43.4 billion (39 billion euros) was spent on battery manufacturing; battery recycling That’s what happened in the United States alone this year, thanks in large part to anti-inflation laws, according to Atlas Public Policy. This will put the US on a more level playing field with Europe, but it will still fall behind China, which is a battery powerhouse.

As for the big ones battery According to Benchmark Mineral Intelligence, 38 factories, known as Gigafactories, are under construction in the United States and Europe by late November. However, China had 295 under development.

The industry continued to explore different manufacturing methods. battery Experts say the battery recycling industry has moved forward, with methods to make components more sustainable and less dependent on hazardous materials.

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Cost of major battery raw materials lithiumBenchmark senior analyst Evan Hartley also said there was a significant drop.

“Battery costs are now on a trajectory where most Americans can afford batteries. EV” says Paul Brown, professor of materials science and engineering at the University of Illinois.

2023 has not been an easy journey. The U.S. industry in particular has weathered some headwinds. Panasonic’s large battery facility in Kansas was facing energy challenges. Toyota needs to strengthen its talent pool at its North Carolina location. Health and safety violations have been found at a joint venture plant between General Motors and LG Energy Solutions in Ohio. The list goes on.

Barriers remain to building minerals, responsible supply chains, and charging infrastructure across regions. “That’s going to be next on the agenda,” said John Eichberger, executive director of the Transportation and Energy Institute.

But experts are optimistic. battery Growth will continue around the world.

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“The story of small batteries in the U.S. is the story of batteries worldwide in 2023,” said Daan Walter, director of the strategy team at the Rocky Mountain Institute, a sustainability research group. . There was. ”



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