Renewable Energy Surges in 2023 Despite Economic Challenges

Solar, wind, and battery sectors set records, with China leading in growth and the U.S. investing heavily in battery manufacturing.

The world added renewable energy at a rapid pace in 2023, led by new solar power, despite economic challenges. The International Energy Agency (IEA) projected that more than 440 gigawatts of renewable energy would be added in 2023, more than the entire installed power capacity of Germany and Spain combined.
China, Europe, and the U.S. each set solar installation records for a single year. Solar is now the cheapest form of electricity in a majority of countries, and solar panel prices fell significantly in Europe between December 2022 and November 2023.
By the end of 2023, the world will have added enough wind energy to power nearly 80 million homes. Most of the growth was added in China, which is on track to surpass its ambitious 2030 target of 1,200 gigawatts of utility-scale solar and wind power capacity five years ahead of schedule.
The electric vehicle trend accelerated globally in 2023, with one in five cars sold this year expected to be electric. More than $43.4 billion has been spent on battery manufacturing and battery recycling just in the U.S. this year, thanks largely to the Inflation Reduction Act.
Despite the growth in renewable energy, there were challenges. There has been a shortage of transformers and rising interest rates. There were also roadblocks in minerals, responsible supply chains, and the buildout of charging infrastructure.