The installed renewable energy capacity globally will more than triple from an estimated 3.42TW at the end of 2024 to 11.2TW by 2035, a new report forecasts.
GlobalData’s Renewable Energy report states that capacity will grow at a compound annual rate (CAGR) of 11% over the period, which although lower than the CAGR of 16% between 2015 and 2024 remains strong. It says the considerable expansion expected over the next decade is being driven variously by technological advancements, policy support and increasing awareness of the need for sustainable energy solutions.
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New investment in renewables will be spearheaded by solar photovoltaic (PV) followed by onshore and offshore wind. Technological advancements have lowered the costs of the technologies, making them more attractive to investors.
“China is currently dominating new investments in solar and wind energy, leading the world in renewable energy capacity and production,” the report says. “It reported a new investment of $155.7bn in solar PV and $113bn in wind.”
The report also notes that solar PV dominated the renewables capacity mix in 2024, contributing around 56% of the total installed. That dominance is expected to grow every year through 2035.
GlobalData put wind power in second place, with a share of 33% in 2024. It too will grow, but at a significantly slower rate.
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By GlobalDataOf the significance of solar PV, the report states: “Solar PV technology has emerged as one of the fastest-growing energy sources globally. The rising demand for solar PV installations in both the utility and residential sectors contributes significantly to the expansion of the solar PV market. An increasing population and heightened awareness of clean energy have led consumers to adopt solar PV systems for their homes and various utility applications.
“The need for energy security, stability and environmental protection are the primary factors driving governments to promote and develop renewable energy sources, including solar PV. Solar PV is acknowledged as a crucial solution for meeting the growing energy demand without depleting natural resources or releasing harmful emissions into the environment.”
