Global Renewable Energy Growth Surges as Fossil Fuel Use Declines

In a landmark report released today, the International Renewable Energy Agency (IRENA) announced that renewable energy capacity additions reached record levels in 2023, with new installations exceeding 310 gigawatts (GW)—up from 295 GW in 2022. This growth was driven primarily by solar and wind energy, which together accounted for more than 90% of all new power generation capacity.

“The transition to renewables is accelerating at an unprecedented pace,” said Francesco La Camera, Director-General of IRENA. “Countries that have set ambitious targets for renewable energy deployment are now seeing the tangible benefits of these policies.”

Solar energy led the expansion, with over 160 GW of new solar capacity added globally, followed by wind energy, which saw around 110 GW of new installations. Hydropower, bioenergy, and geothermal energy also contributed to the growth, though at a slower pace.

The report highlights that renewable energy now supplies approximately 30% of the world’s electricity, a significant increase from just 10% a decade ago. “The data clearly shows that renewables are not just a niche solution but the backbone of the global energy transition,” added La Camera.

Meanwhile, fossil fuel use continues to decline in many regions. The International Energy Agency (IEA) reported that global coal demand fell by more than 2% in 2023, marking the first decline in over a decade. Oil demand also showed signs of stabilization, with growth slowing to a modest pace compared to previous years.

Experts warn, however, that despite these gains, the world is still off track to meet the Paris Agreement's goal of limiting global warming to 1.5°C. "We need to see even faster deployment of renewables and a more aggressive phase-out of fossil fuels."

Governments and private sector leaders are increasingly investing in renewable energy infrastructure. The report notes that over $500 billion was invested in renewable energy projects worldwide last year, with emerging markets seeing particularly strong growth.

Looking ahead, IRENA projects that renewable energy could meet up to 80% of global electricity demand by 2050 if current trends continue and policy support remains strong.