IEA Renewable Energy Reports of Current Policies and Market Conditions

In the main case forecast in IEA report, almost 3 700 GW of new renewable capacity comes online over the 2023 2028 period, driven by supportive policies in more than 130 countries. Solar PV and wind will account for 95% of global renewable expansion, benefiting from lower generation costs than both fossil and non fossil fuel alternatives.

According to Renewables 2023 from IEA, the world is on course to add more renewable capacity in the next five years than has been installed since the first commercial renewable energy power plant was built more than 100 years ago. In the main case forecast in this report, almost 3 700 GW of new renewable capacity comes online over the 2023 2028 period, driven by supportive policies in more than 130 countries. Solar PV and wind will account for 95% of global renewable expansion, benefiting from lower generation costs than both fossil and non fossil fuel alternatives.

Over the coming five years, several renewable energy milestones are expected to be achieved:
•    In 2024, wind and solar PV together generate more electricity than hydropower.
•    In 2025, renewables surpass coal to become the largest source of electricity generation.
•    Wind and solar PV each surpass nuclear electricity generation in 2025 and 2026 respectively.
•    In 2028, renewable energy sources account for over 42% of global electricity generation, with the share of wind and solar PV doubling to 25%. 

“The new IEA report shows that under current policies and market conditions, global renewable capacity is already on course to increase by two-and-a-half times by 2030. It’s not enough yet to reach the COP28 goal of tripling renewables, but we’re moving closer – and governments have the tools needed to close the gap,” said IEA Executive Director Fatih Birol. “Onshore wind and solar PV are cheaper today than new fossil fuel plants almost everywhere and cheaper than existing fossil fuel plants in most countries. There are still some big hurdles to overcome, including the difficult global macroeconomic environment. For me, the most important challenge for the international community is rapidly scaling up financing and deployment of renewables in most emerging and developing economies, many of which are being left behind in the new energy economy. Success in meeting the tripling goal will hinge on this.”

What is needed to triple renewables by 2030 varies significantly by country, region and technology. The report lays out an accelerated case in which more rapid policy implementation drives renewable power capacity growth 21% higher than in the main forecast, which would push the world towards being on track to meet the global tripling pledge.

In advanced and large emerging economies, this would mean addressing challenges such as policy uncertainty in a fragile economic environment, insufficient investment in grid infrastructure to accommodate greater shares of renewables, and cumbersome administrative barriers and permitting delays. In other emerging and developing economies, access to finance, strong governance and robust regulatory frameworks are essential to reduce risk and attract investment, including establishing new targets and policies in countries where they do not exist yet.

What is needed to triple renewables by 2030 varies significantly by country, region and technology. The report lays out an accelerated case in which more rapid policy implementation drives renewable power capacity growth 21% higher than in the main forecast, which would push the world towards being on track to meet the global tripling pledge.

In advanced and large emerging economies, this would mean addressing challenges such as policy uncertainty in a fragile economic environment, insufficient investment in grid infrastructure to accommodate greater shares of renewables, and cumbersome administrative barriers and permitting delays. In other emerging and developing economies, access to finance, strong governance and robust regulatory frameworks are essential to reduce risk and attract investment, including establishing new targets and policies in countries where they do not exist yet.

As a company mainly dedicated to providing professional services for the industrial development in the field of new energy, we are full of expectations for the development of new energy in the next 10 years and will continue to participate in it. In order to help the Premium Clients we cooperate with to quickly occupy the local market and gain a high-quality reputation. We will launch a policy support called "SunRise 2024". This policy mainly reflects the following three points:

1. For the development of large-scale photovoltaic power stations of 50MW or above, as long as local government policies support it, we will provide the highest quality EPC services or cost-effective financing services.
2. For high-quality customers who need to purchase photovoltaic-related products and whose total annual purchase exceeds 10MW, we can provide 30-day OA account service to help customers improve their capital turnover rate.
3. For customers who have cooperated for 3 years or more, we will provide new product development services for free.

This policy has specified evaluation standards, which mainly refer to the following aspects:

1. Project Viability and Technological Soundness:

   • Assess the technical feasibility and soundness of the solar energy project. Ensure that the proposed technology is proven and reliable.
   • Evaluate the project's potential for long-term sustainability and its compatibility with local environmental conditions.

2. Cost-Benefit Analysis:

   • Conduct a thorough cost-benefit analysis to determine the economic viability of the project.
   • Evaluate the return on investment (ROI) and consider the long-term financial implications of the solar energy initiative.

3. Financial Stability of Recipients:

   • Evaluate the financial stability and credibility of the entities or individuals receiving financial support.
   • Ensure that recipients have the capacity to manage funds responsibly and implement the project effectively.

4. Policy Alignment:

   • Ensure that financial support aligns with broader energy and environmental policies to maximize the impact on national or regional sustainability goals.
   • Verify that the project complies with relevant regulations and standards.

5. Market Conditions and Trends:

   • Consider the current market conditions for solar energy, including pricing, demand, and supply.
   • Stay informed about market trends and adjust financial support mechanisms accordingly to address emerging opportunities or challenges.

6. Risk Assessment:

   • Identify and assess potential risks associated with the solar energy project, including technological, financial, regulatory, and environmental risks.
   • Implement risk mitigation strategies to minimize the impact of potential challenges.

7. Job Creation and Economic Impact:

   • Evaluate the potential for job creation and the broader economic impact of the solar energy initiative.
   • Consider how financial support can contribute to local economic development and community well-being.

8. Innovation and Research Needs:

   • Assess the level of innovation and research incorporated into the project.
   • Consider whether financial support should be directed towards projects that contribute to technological advancements and research in the solar energy sector.

9. Social and Environmental Impact:

   • Evaluate the social and environmental implications of the solar energy project.
   • Consider projects that promote social equity, community engagement, and minimize negative environmental impacts.

10. Monitoring and Evaluation Mechanisms:

    • Implement robust monitoring and evaluation mechanisms to track the progress and impact of the supported projects.
    • Regularly review and assess the outcomes to make informed decisions on future financial support.

11. Accessibility and Inclusivity:

    • Ensure that financial support mechanisms are accessible to a diverse range of stakeholders, including small and medium-sized enterprises, local communities, and marginalized groups.

12. International Collaboration and Standards:

    • Consider international collaboration and adherence to global standards to promote interoperability and alignment with best practices in the solar energy sector.