Back then, the growth of renewable electricity generation was driven by factors such as long-term contracts and priority grid access, leading to a 7% increase in renewable energy generation. In 2024, market is driven by government policies and incentives, technological advancements in energy storage, the aim to reduce dependence on imported fossil fuels, enhance energy security by investing in domestic renewable energy sources, global initiatives, agreements and economic benefits.
So, what is renewable energy? It is energy collected from resources that are naturally restored on a human timescale. This means that resources are restored naturally and at a rate that allows us to use them over a long period without depleting them, unlike fossil fuels, which take millions of years to form.
This includes sources like solar energy, which is abundant in sunny regions. It generates sunlight using solar panels and is mainly used to generate electricity, heating, and vehicles. Wind energy is produced by wind turbines that can convert wind’s kinetic energy into electricity. Hydropower is sourced from the energy of moving water usually by using dams on large rivers to store water in reservoirs. Geothermal energy is produced from the heat within the earth, it can be used for electricity generation and direct heating applications. Biomass is also produced from materials like plant and animal waste that can be converted into bioenergy, such as biofuels for transportation and biogas for heating and electricity.
Renewable energy market
As of 2024, the renewable energy market accounts for $1,219 billion globally, according to Statista. In 2023, China led in installed renewable energy capacity with 1,453 gigawatts, followed by the US, with 388 gigawatts, Brazil with 194 gigawatts, India with 176 gigawatts and Germany with 167 gigawatts. The global investment in renewable energy reached $ 1.1 trillion in 2022, encompassing both country-level and industry-level investments. This means it accounts for investments made by individual countries, as well as investments by companies and industries within those countries. Solar energy accounted for 60% of renewable energy investments with solar PV investments approximately $300 billion, according to Statista.
What are the benefits of green energy?
As the market for this sector surges so do the economic benefits of investing in green energy. For example, the World Resources Institute reports that $1 million invested in green energy creates more jobs than the amount invested in fossil fuels. In the United States, the wind turbine has created jobs in Iowa. Companies like Siemens, Tesla NextEra Energy and Vesta have hired energy analysts and asset managers to streamline the processes in green energy. Apart from this, a surge in renewable energy investment on the country or industry level will increase both regional and global GDP.
Other notable benefits other than economic are the environment, lower cost of healthcare benefits, innovation and technological advances.
What are the challenges?
Challenges are like blockages that inhibit a sector’s growth, and in the renewable energy sector is no different. For example, the leading challenge for emerging and developing countries is securing financing for renewable energy projects, which hinders them from reaping the same economic benefits as the developed countries. India, Brazil, South Africa and Indonesia, although having a strong foothold in the renewable sector, struggle to scale up their projects. This could become a global challenge because the faster more countries invest in green energy, the faster we can all become a green economy.
This global challenge indicates the importance of international cooperation and investment to accelerate the transition into a green economy.
What do we expect in the future?
Global renewable capacity is projected to grow as more countries aim for ambitious 2030 targets. The market is estimated to reach $2,025 billion by then. India, for example, has also set a goal to achieve net zero by 2070.
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