2023 showcased a record year for global renewable capacity additions, with an increase of almost 50% compared to 2022 according to IEA. At COP28, 130 countries pledged to triple renewable energy capacity by 2030, and for the first time a commitment to transition away from fossil fuels was agreed.
To achieve net-zero emissions by 2050, the world must triple its efforts by 2030, as stated by BNEF. This requires a significant acceleration, including:
- A doubling of annual investments in renewable energy towards 2030 compared to 2022
- Power grid investment to be nearly three times more in 2030 than it was in 2022
- Battery storage capacity to increase 16.1 times the total deployment at the end of 2022
Price drops pave the way for attractive growth
The competitiveness of renewables continued to strengthen in 2023 with prices for solar modules and battery storage system reaching an all-time low during the year, down 45% and 24% respectively, and with significant capacity expansion throughout the value chains estimated to put continued pressure on prices in 2024. Power generated from solar and wind are now the most cost-efficient source of energy in the majority of the markets where Scatec operates.
