Market Developments Total global installed renewable power capacity reached 3,481 gigawatts in 2022. Almost 10% of the total installed renewable power capacity was added in 2022. Renewables cover 30% of global electricity generation, with solar PV and wind power representing 12%. China, the United States, India, Brazil and Spain installed 66% of the new solar PV capacity in 2022. Announced hydrogen projects would lead to an installed electrolyser capacity of 134-240 GW by 2030. Key Facts Key Facts Bioenergy Jump to section Bioenergy (including traditional use of biomass) is the largest renewable energy source, accounting for 12.6% of overall energy consumption in 2020. Globally, most of the use of bioenergy was for heating. Global production of liquid biofuels totalled 162 billion litres in 2021, providing 3.6% of the overall energy use in the transport sector. In 2022, 672 terawatt-hours (TWh) of electricity was generated from a wide variety of biomass feedstock, with the share in overall electricity generation at 2.4%. Total installed bio-power capacity was 149 gigawatts (GW) in 2022. Key Facts Geothermal Power and Heat Jump to section New geothermal power generating capacity of 0.2 GW came online in 2022, bringing the cumulative global total to around 14.6 GW. Global geothermal power capacity additions were one-third lower in 2022 than in 2021, and well below the five-year average of 0.5 GW since 2017. Geothermal power capacity was added in Indonesia, Japan, Kenya, Nicaragua, the Philippines, and the United States, with most countries adding only single, small units. Geothermal direct-use (excluding heat pumps) grew nearly an estimated 10% in 2022, to around 155 TWh (560 petajoules, PJ). China is the world's fastest-growing geothermal heat market, and other key markets are Türkiye, Iceland and Japan. Together, these four countries are estimated to account for nearly 90% of global geothermal direct use in 2022. Key Facts Heat Pumps Jump to section Heat pumps are an established technology and met around 10% of the world's heating needs in buildings in 2022. Sales of heat pumps grew 11% globally in 2022, notably in Europe where they increased 38%, driven in part by the Russian Federation's invasion of Ukraine. In the United States, annual sales of heat pumps eclipsed fossil gas furnaces for the first time. Many countries experienced reductions in the upfront cost of heat pumps, which remains a significant barrier to deployment. In 2022, more than EUR 5 billion (USD 5.4 billion) of investment was announced in heat pump manufacturing facilities in Europe, while the United States earmarked USD 10 billion in tax credits for manufacturing, for which heat pumps are eligible. Poland is one of the world's fastest growing markets for heat pumps and solar photovoltaics (PV). Heat pump sales grew 120% in 2022, and Poland became the third largest solar PV market in the European Union. Key Facts Hydrogen Jump to section Despite the rapid scale-up of electrolysis plants to 510 MW by the end of 2021 – up by 210 MW or 70% relative to 2020 – the demand for hydrogen is still being met almost entirely (around 95%) by hydrogen produced from fossil fuels. More than 393 deals related to hydrogen were closed in 2022, up significantly from the 277 deals registered in 2021. Realisation of all of the projects in the hydrogen pipeline could lead to an installed electrolyser capacity of 134-240 GW by 2030, with the lower end of the range similar to the total installed renewable capacity in Germany and the upper end similar to the capacity in all of Latin America. Australia has the largest number of announced renewable hydrogen plants among countries. Governments continue to consider hydrogen a pillar of their energy sector strategies, with around 30 countries having national hydrogen strategies as of 2022. Key Facts Hydropower Jump to section Global installed hydropower capacity reached 1,220 GW in 2022, up 22.2 GW from 2021. China grew its lead in installed hydropower capacity, bringing the total to 368 GW in 2022, more than in Brazil, Canada, the United States and the Russian Federation combined. Hydropower generation reached 4,429 TWh in 2022, half of it produced by only four countries (China, Brazil, Canada and the United States). European hydropower production dropped 19% in 2022 due to extreme drought. Hydropower provides crucial services including load following, grid support and caseload electricity; in areas where hydroelectric production has declined due to drought, coal has been used to supplement these services. Key Facts Ocean Power Jump to section Europe still leads the race to commercialisation of ocean power, but ambitious support programmes are spurring developments in Canada, China and the United States. Five tidal stream devices (2.7 MW) and six wave power devices (165 kW) were deployed in 2022. Tidal stream has demonstrated its reliability, with total generation surpassing 80 GWh in 2022. The UK government's Contracts for Difference scheme earmarked 41 MW for tidal power in 2022, for the first time ever. Developers of ocean power attracted EUR 16 million (USD 17 million) in funding from diverse sources during the year. Key Facts Solar Photovoltaics (PV) Jump to section Solar PV maintained its record-breaking streak, with new capacity increasing 37% in 2022, while global solar production reached an average of 6.2%, up from 5% in 2021. For the tenth consecutive year, Asia dominated regionally in new solar PV installations, contributing 64% of the global added capacity in 2022. The leading countries for cumulative installed solar PV capacity remained China, the United States, India, Brazil, and Spain, while the leading markets for per capita capacity remained Australia, the Netherlands and Germany. Poland was a new entrant to the top 10 solar PV installers (eighth globally and third in Europe), adding 4.9 GW of capacity, nearly 50% more than its capacity added in 2021. Centralised utility-scale solar PV reached a total of 124.8 GW of new installations, driven by tenders and the attractiveness of power purchase agreements. Distributed PV added 115.2 GW and was driven by falling module costs, which made installations more attractive and accessible. Although solar PV panel production remains concentrated in China, more countries have strengthened import barriers and incentives for local manufacturing, pioneered by the United States and India. Key Facts Concentrating Solar Thermal Power (CSP) Jump to section Following the first-ever year of contraction in global CSP capacity, 200 MW was added in the United Arab Emirates in 2022 to reach a total of 6.3 GW worldwide. For nearly one decade, no new CSP capacity has been added in historical leaders of Spain and the United States. China is poised to become a global leader in installed CSP capacity, with at least 30 projects under various stages of construction and commissioning as of the end of 2022. Several African countries also were developing CSP projects. Hybrid projects, where CSP is co-located with solar PV and wind power, are increasingly common and have been responsible for driving down costs. Nearly all new CSP plants contain some form of thermal energy storage. The cost of electricity generated by CSP plants fell 68% between 2010 and 2021. Key Facts Solar Thermal Heating Jump to section The global solar thermal market contracted 9.3% in 2022, due largely to a drop in China. Sales grew at double-digit rates in several large markets including Italy (up 43%), France (29%), Greece (almost 17%), Germany and Poland (both 11%). Although small-scale systems for water and space heating continued to lose market share in many countries, demand for large-scale projects increased. Solar thermal continued to face fierce competition from solar PV as well as heat pumps and biomass boilers. By the end of 2022, millions of residential, commercial and industrial clients in some 150 countries were benefiting from solar thermal heating systems. The leading markets for solar thermal technology in district heating were China, which commissioned an estimated 25 systems, and Germany, which had a record year with 8 new plants. Key Facts Wind Power Jump to section An estimated 89 GW of wind power capacity was mechanically installed in 2022, of which more than 77 GW was added to the world's grids, bringing the total grid-connected capacity to an estimated 906 GW. Global grid-connected additions fell more than 17% due mainly to slowdowns in China and the United States; Europe was the only region where installations rose. Countries around the world increased their wind power targets, driven by climate change, energy security, and economic growth goals, as well as the cost-competitiveness of wind energy. While offshore installations declined relative to 2021, due mainly to a temporary slowdown in China, the global pipeline nearly doubled in 2022 to nearly 1.2 terawatts across 38 countries. The industry continued to innovate to change the cost base of projects; to address challenges associated with scaling up production, transport and other logistical issues; and to enhance the value of wind energy while further improving its environmental and social sustainability. Market Developments Bioenergy