# New global renewables capacity additions to rise by a third this year – IEA Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-06-01 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Global Renewables Capacity Additions to Rise by a Third in Meta Description: Renewable power capacity to increase by 107 GW in 2023, with solar and wind driving growth. IEA highlights record-breaking expansion in global clean energy URL: https://financedigest.com/new-global-renewables-capacity-additions-to-rise-by-a-third-this-year-ieahtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-06-01t050516z1lynxmpej5013wrtroptp4iea-renewables-1736813948488-compressed.jpg) # New global renewables capacity additions to rise by a third this year – IEA By Nina Chestney LONDON (Reuters) – Global additions of renewable power capacity are expected to rise by a third this year, the International Energy Agency (IEA) said on Thursday, as stronger government policies and energy security concerns drive more clean energy deployment. In its Renewable Energy Market update report, the IEA said additions of renewable capacity worldwide are set to jump by 107 gigawatts (GW), the largest absolute increase ever, to more than 440 GW in 2023. Next year, total [global renewable electriacity capacity is expected to rise](https://www.financedigest.com/global-shares-rise-dollar-rebounds-as-fed-seen-on-target-for-rate-hike.html "Global shares rise, dollar rebounds as Fed seen on target for rate hike") to 4,500 GW, equivalent to the total power output of China and the U.S. combined. Solar and wind are [leading the rapid expansion of the new global](https://www.financedigest.com/leading-global-trade-finance-specialist-becomes-adviser-to-gfg-alliance-firm-wyelands-capital.html "Leading global trade finance specialist becomes adviser to GFG Alliance firm, Wyelands Capital") energy economy,” IEA Executive Director Fatih Birol said. “This year, the world is set to add a record-breaking amount of renewables to electricity systems – more than the total power capacity of Germany and Spain combined.” In Europe, the growth of renewable energy is at the heart of the bloc’s response to the energy crisis in the wake of the Ukraine war. New policy measures are also helping to drive significant capacity increases in the U.S. and India over the next two years. [China is also expected to account for nearly](https://www.financedigest.com/china-rebalancing-continues-but-near-term-headwinds.html "China: Rebalancing continues but near term headwinds") 55% of global additions of renewable power capacity in both 2023 and 2024, the IEA said. Solar photovoltaic (PV) capacity additions will [account for two-thirds of this year’s](https://www.financedigest.com/myfirmsapp-shortlisted-for-top-accountancy-practice-product-of-the-year.html "MyFirmsApp Shortlisted for Top Accountancy Practice Product of the Year") increase, and are expected to keep growing in 2024. High electricity prices have been [driving the faster](https://www.financedigest.com/dash-blockcypher-combine-forces-to-drive-cryptocurrency-adoption-partnership-enables-faster-and-more-cost-effective-enterprise-integration.html "Dash &BlockCypher Combine Forces to Drive Cryptocurrency Adoption Partnership Enables Faster and More Cost Effective Enterprise Integration") growth of rooftop solar PV, the report said. Wind power capacity additions are forecast to grow by almost 70% in 2023 year-on-year due to the completion of projects that had been delayed by COVID restrictions in China and by [supply chain](https://www.financedigest.com/jlr-taps-everstream-analytics-ai-to-dodge-supply-chain-problems.html "JLR taps Everstream Analytics’ AI to dodge supply chain problems") issues in the U.S and Europe. However, further [growth in 2024 will depend on whether governments can provide greater policy support](https://www.financedigest.com/new-chief-financial-officer-joins-clusterseven-to-support-business-growth.html "New Chief Financial Officer Joins ClusterSeven to Support Business Growth") to address challenges in terms of permitting and the design of capacity auctions, the report added. Even though the competitiveness of wind and solar PV has improved since last year, renewable energy auctions were under-subscribed by a record 16% in 2022. More [investment in upgrading grids to integrate higher volumes of renewables in power systems is also needed](https://www.financedigest.com/investment-needs-design-led-apps-to-find-their-purpose.html "Investment needs design led apps to find their purpose"). (Reporting by Nina Chestney; Editing by Jan Harvey) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---