WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 50
How to make money
from renewables
Global added wind and solar capacity in 2022 and 2023
• Europe: The EU’s REPowerEU plan aims to reduce dependence on
Russian fossil fuels and accelerate the green transition. In 2023,
Europe added 40 GW of renewable capacity, with a strong focus
on offshore wind and solar PV. However, profitability remains a
challenge due to high land and labor costs.
• Asia: As show in figure 1. China continues to lead in renewable
energy capacity additions, with close to 300 GW added in 2023.
The country benefits from lower production costs and economies
of scale but faces challenges in grid integration and curtailment.
Despite this growth, renewables still have the lowest profit margins
compared to other energy sector capacities. Coal, or oil and gas are
more established industries than renewables and possess a level of
profitability that renewables struggle to achieve.
400
+73%
350
300
250
+152%
200
150
+46%
100
+105%
+27%
+31%
50
+19%
-27%
-18%
0
Global
EU27
Wind 2022
Source: Renewable Energy Capacity Statistics 2024 (IRENA)
USA
Wind 2023
Solar 2022
China
Solar 2023
Other
WEMO 2024
• North America: The USA saw a significant increase in utility-scale
solar capacity, adding nearly 24 GW in 2023, driven by federal
incentives and state-level mandates. However, wind capacity
additions lagged, with only 8 GW added due to permitting delays
and supply chain issues.
HOME
FIGURE 1
The renewables industry has seen remarkable growth in recent
years. According to IRENA, in 2023, global renewable energy capacity
increased by as much as 12%, hitting 3,372 gigawatts (GW). Solar PV
and wind power were the two leading sources of growth, with 20%
and 10% growth rates, respectively. In the first half of 2024, EU’s
wind and solar power even surpassed fossil fuels, reaching a share of
30% of electricity generation.
Global spending on renewables also hit a new record of $735 billion
in 2023, driven by solar PV and wind.
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ARTICLE
50
Renewable energy: Growth and
profitability trends
GLOBAL
OUTLOOK
Added Capacity (GW)
01
