RENEWABLES 2023 GLOBAL STATUS REPORT

RENEWABLES
IN ENERGY DEMAND

Topic: Market Developments

This topic bundles the Market Developments sections accross energy demand sectors of this publication. Expand by clicking on one of the topics.



Buildings in Focus | Market Developments in Buildings

Market Developments

Markets for renewable energy technologies in buildings have been on the upswing, due largely to favourable economics, supportive government policy and the need to address climate change. The use of on-site and community-generated renewable electricity, as well as markets for renewable heating and cooling technologies (especially heat pumps), grew strongly during 2021 and 2022.

Distributed solar PV supplied electricity to around 25 million households worldwide in 2021. 90 Distributed solar accounted for nearly half of the global solar market that year, its highest share since 2012. 91 (Centralised solar PV generation overtook distributed generation in 2015 and has since accounted for the majority of PV installations worldwide, at 56%, a share that has remained roughly stable. 92 ) Of the estimated 78 GW of distributed solar PV installed in 2021, around 60% was residential and 40% commercial. 93

Europe had the highest regional share of distributed solar PV in 2021, but China, with its overall market lead, was the world's top installer. 94 China also was one of the few top markets to install more distributed solar PV (29 GW) than centralised solar PV (26 GW), joined by Germany (3.75 GW versus 2 GW), Australia (3.2 GW versus 1.7 GW) and Japan (3.6 GW versus 3.0 GW). 95 Countries that installed more utility-scale plants than distributed capacity included the United States (20 GW centralised versus 6.6 GW distributed) and India (11.6 GW versus 2 GW). 96 Rooftop solar also picked up in nascent markets such as Israel and Jordan. 97

Global technology companies have launched several projects to use waste heat from data centres for district heating and other purposes. For example, the waste heat from an Amazon data centre in Dublin (Ireland) is heating local homes and offices; Microsoft launched a similar project in Helsinki (Finland) in early 2022; and an Interxion data centre aims to provide heat to a hospital in Vienna (Austria). 98

Heating for space and water is the largest energy use in buildings and the one most heavily based on fossil fuels. In 2022, markets for many renewable heating and cooling technologies grew in response to the energy crisis.

The use of bioenergy to provide heating services is the largest renewable energy end-use in buildings. Much of this comes from the traditional use of biomass i , which increased from 24.3 EJ in 2019 to 24.5 EJ in 2021. 99 Europe consumes more than three-quarters of the world's biomass pellets, many of them imported from the United States and Canada. 100 Sales of biomass stoves surged in Europe during 2022, notably in Germany, and wood pellets in Europe and the United States faced a supply crunch as more households turned to biomass heat. 101 China also is an emerging market for biomass heat. 102

Solar heat provided around 10.5% of modern renewable heating consumption in 2021. 103 In 2021, the global market for solar collectors grew 3% to reach a cumulative 522 gigawatts-thermal, continuing its rebound from a 2019 low. 104 China's solar heat market, the world's largest, grew modestly during 2021, and strong growth also occurred in Brazil, Greece, India, Italy, Poland and the United States. 105 In Africa, a solar thermal project in Namibia provides water heating to at least 58 social housing residences, and southern African countries such as Botswana, Lesotho, Namibia, South Africa and Zimbabwe have published roadmaps on the potential to increase solar thermal uptake. 106 The European solar thermal industry struggled in 2022 due to the aftershocks of the COVID-19 pandemic and the war in Ukraine. 107

Solar heat increasingly provides space heating through large-scale installations and district heating networks. In 2021, 44 new large-scale solar heat systems came online – mainly in China and Europe but also in Mexico (3 systems) – and growth continued in 2022 with the start of construction of a solar district heating plant in the Netherlands, among other projects. 108 The use of hybrid solar PV-thermal (PVT) panels grew 13% in 2021, with more than 6,000 systems brought online for a total capacity of 751 megawatts-thermal ( MWth). 109

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Direct use of geothermal heat also provides space and water heating services. Around 39% of geothermal direct use is for space heating. 110 In total, the global installed geothermal heating capacity grew around 9% annually from 2014 to 2019. 111 The world leaders in geothermal direct use for heating and cooling are China, the United States, Sweden, Türkiye and Japan; on a per capita basis, the leaders are Iceland, Sweden, Finland and Norway. 112

During 2022, China launched geothermal heating services covering millions of households in more than 60 cities and counties. 113 In the United States, construction started on New York City's largest district heating and cooling system; work progressed on projects in Massachusetts and Texas; and the Department of Energy announced a USD 13 million fund to develop geothermal district heat. 114 In total, the United States has 23 geothermal district heating systems, with the first installed in 1892. 115 Canada allotted CAD 1.3 million (USD 960,000) to develop geothermal heat projects in Nova Scotia. 116

In Europe, 13 new geothermal district heating and cooling projects were brought online in 2021, providing more than 154 MWth of new capacity. 117 Three-quarters of this growth was in France, Poland and Iceland. 118 During 2022, more than 20 projects were in development, including in these three countries. 119 The first geothermal district heating plant in Vienna (Austria) also was given the green light. 120

Policies that support building electrification continued to boost markets for electric heat technologies, notably electric heat pumps. Heat pump markets set growth records in many countries in 2022, including in the EU and the United States. 121 Year-on-year growth over the first half of the year exceeded 10% in six countries: Italy (up 114%), the Netherlands (100%), Poland (96%), Finland (80%), Germany (25%) and Norway (11%). 122 The US market grew 7.3% in the first half of 2022 compared to the same period in 2021. 123

Influenced by the war in Ukraine and by REPowerEU, several heat pump manufacturers announced or made significant investments in production facilities during the year. Viessmann plans to spend EUR 1 billion (USD 1,067 million) over three years; Daikin announced a EUR 1.2 billion (USD 1,281 million) investment in heat pump manufacturing to 2025 in Europe, aiming to triple its manufacturing capacity; and Bosch, Panasonic and many other manufacturers made similar announcements. 124

District heating networks met a rising share of heating demand in buildings in 2022. The use of renewable energy in district heating grew from 0.4 EJ in 2011 to 0.6 EJ in 2021. 125 Overall, the share of renewables in district heating systems grew from 4.1% to an estimated 5.6% during the decade. 126 Most district heating activity is in Europe, although much of this entails converting existing networks to renewable sources (biomass, solar and geothermal heat, and large-scale heat pumps), rather than building new networks. 127 More projects are integrating waste heat into district networks, such as in the Netherlands and Sweden. 128 In a novel example in Finland, ambient heat from the Baltic Sea is fed into a district heat network to heat homes in place of coal and fossil gas. 129

Wood pellets in Europe and the United States faced a supply crunch in 2022 as more households turned to biomass heat.

Markets for cooling technologies are changing quickly. Globally, 1.2 billion people are at risk due to lack of access to cooling, and demand for air conditioning and other cooling services has been the fastest growing energy use in buildings. 130 The average efficiency of cooling appliances has been increasing, helping to mitigate the growth in electricity demand from cooling. 131 However, the most efficient models have not necessarily had the highest uptake. 132 Examples of renewable cooling applications in 2022 included the drilling of the first wells for a geothermal cooling system in India and plans for geothermal cooling in Bali, Indonesia. 133

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Footnotes

i The traditional use of biomass includes the burning of woody biomass or charcoal, as well as dung and other agricultural residues, in simple and inefficient devices to provide energy for residential cooking and heating in developing and emerging economies.

  1. International Energy Agency (IEA), “World Energy Balances 2020: Extended Energy Balances,” August 2022, https://www.iea.org/data-and-statistics/data-product/world-energy-balances, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).1
  2. Ibid.2
  3. Ibid.3
  4. Ibid.4
  5. Organisation for Economic Co-operation and Development (OECD), “Decarbonising Buildings in Cities and Regions,” June 2022, https://read.oecd-ilibrary.org/urban-rural-and-regional-development/decarbonising-buildings-in-cities-and-regions_a48ce566-en.5
  6. IEA, op. cit. note 1.6
  7. Ibid. 7
  8. IEA, “Buildings – Analysis,” September 2022, https://www.iea.org/reports/buildings.8
  9. Ibid.9
  10. Figure 3 from IEA, op. cit. note 1.10
  11. Ibid.11
  12. Figure 4 from Ibid.12
  13. IEA, op. cit. note 1.13
  14. Ibid.14
  15. Ibid.15
  16. Ibid.16
  17. IEA et al., “Tracking SDG 7: The Energy Progress Report 2022,” 2022, https://trackingsdg7.esmap.org/data/files/download-documents/sdg7-report2022-full_report.pdf; L. Cozzi et al., “For the First Time in Decades, the Number of People Without Access to Electricity Is Set to Increase in 2022 – Analysis,” IEA, November 3, 2022, https://www.iea.org/commentaries/for-the-first-time-in-decades-the-number-of-people-without-access-to-electricity-is-set-to-increase-in-2022.17
  18. IEA et al., op. cit. note 17.18
  19. Cozzi et al., op. cit. note 17; Empresa de Pesquisa Energética, “Brazilian Energy Balance – Year 2021,” 2022, https://www.epe.gov.br/sites-pt/publicacoes-dados-abertos/publicacoes/PublicacoesArquivos/publicacao-675/topico-638/BEN2022.pdf. 19
  20. See Box 2 in “Global Overview” in REN21, “Renewables 2022 Global Status Report,” 2022, www.ren21.net/gsr-2022.20
  21. Figure 5 from IEA, “Heating – Analysis,” 2022, https://www.iea.org/reports/heating.21
  22. IEA, op. cit. note 1.22
  23. IEA, “Renewables 2022 – Analysis,” 2022, https://www.iea.org/reports/renewables-2022.23
  24. IEA, op. cit. note 1.24
  25. IEA, op. cit. note 21.25
  26. IEA, “Heat Pumps – Analysis,” 2022, https://www.iea.org/reports/heat-pumps; IEA, op. cit. note 1.26
  27. IEA, op. cit. note 1. 27
  28. IEA, op. cit. note 1; IEA, op. cit. note 21. 28
  29. IEA, “Energy Efficiency 2022 – Analysis,” 2022, https://www.iea.org/reports/energy-efficiency-2022.29
  30. IEA, op. cit. note 1; B. Naran, R. Padmanabhi and P. Rosane, “Tracking Incremental Energy Efficiency Investments in Certified Green Buildings,” Climate Policy Initiative, December 16, 2021, https://www.climatepolicyinitiative.org/publication/incremental-investments-in-energy-efficiency-in-green-buildings.30
  31. Ibid.31
  32. J. Psaropoulos, “Is Ukraine War Speeding Europe's Transition to Renewable Energy?” Al Jazeera, November 6, 2022, https://www.aljazeera.com/news/2022/11/6/is-ukraine-war-speeding-europes-transition-to-renewable-energy; IEA, “Executive Director Rebuts Three Myths About Today's Global Energy Crisis,” September 7, 2022, https://www.iea.org/news/executive-director-rebuts-three-myths-about-today-s-global-energy-crisis. Snapshot: Europe based on the following sources: Eurostat, “Energy Balance Visualisation Tool,” https://ec.europa.eu/eurostat/cache/infographs/energy_balances/enbal.html, accessed November 14, 2022; IEA, “A 10-Point Plan to Reduce the European Union's Reliance on Russian Natural Gas – Analysis,” March 2022, https://www.iea.org/reports/a-10-point-plan-to-reduce-the-european-unions-reliance-on-russian-natural-gas; G. Zachmann, G. Sgaravatti and B. McWilliams, “European Natural Gas Imports,” Bruegel, https://www.bruegel.org/dataset/european-natural-gas-imports, accessed November 14, 2022; European Commission, “REPowerEU: Joint European Action for More Affordable, Secure and Sustainable Energy,” May 18, 2022, https://eur-lex.europa.eu/resource.html?uri=cellar:fc930f14-d7ae-11ec-a95f-01aa75ed71a1.0001.02/DOC_1&format=PDF; B. Claeys, J. Rosenow and M. Anderson, “Is REPowerEU the Right Energy Policy Recipe to Move Away from Russian Gas?” Euractiv, June 27, 2022, https://www.euractiv.com/section/energy/opinion/is-repowereu-the-right-energy-policy-recipe-to-move-away-from-russian-gas; Odyssee-Mure, “EU Heating Energy | Heating Energy Consumption by Energy Source,” https://www.odyssee-mure.eu/publications/efficiency-by-sector/households/heating-energy-consumption-by-energy-sources.html, accessed November 14, 2022; D. Gibb et al., “Turning Off the Gas: Stronger and Coherent EU Policy to Accelerate the Fossil Gas Phaseout,” Regulatory Assistance Project, October 18, 2022, https://www.raponline.org/knowledge-center/turning-off-gas-stronger-coherent-eu-policy-accelerate-fossil-gas-phaseout; Buildings Performance Institute of Europe, “EPBD Recast: New Provisions Need Sharpening to Hit Climate Targets,” January 20, 2022, https://www.bpie.eu/publication/epbd-recast-new-provisions-need-sharpening-to-hit-climate-targets.32
  33. Ember, “EU's Record Growth in Wind and Solar Avoids €11bn in Gas Costs During War,” October 18, 2022, https://ember-climate.org/press-releases/eus-record-growth-in-wind-and-solar-avoids-e11bn-in-gas-costs-during-war.33
  34. IEA, op. cit. note 23; BloombergNEF, “Energy Transition Factbook 2022,” September 2022, https://assets.bbhub.io/professional/sites/24/BloombergNEF-CEM-2022-Factbook.pdf.34
  35. IEA, op. cit. note 23.35
  36. Bnamericas, “Ministry of Energy Launches National Heat and Cold Strategy,” June 24, 2021, https://www.bnamericas.com/en/news/ministry-of-energy-launches-national-heat-and-cold-strategy; Government of the UK, “Heat and Buildings Strategy,” October 29, 2021, https://www.gov.uk/government/publications/heat-and-buildings-strategy; Sustainable Energy Authority of Ireland, “National Heat Study,” https://www.seai.ie/data-and-insights/national-heat-study, accessed October 29, 2022.36
  37. N. Kurmayer, “Netherlands to Ban Fossil Heating from 2026, Make Heat Pumps Mandatory,” Euractiv, May 17, 2022, https://www.euractiv.com/section/energy-environment/news/netherlands-to-ban-fossil-heating-by-2026-make-heat-pumps-mandatory.37
  38. L. Sunderland and D. Gibb, “Taking the Burn Out of Heating for Low-Income Households,” Regulatory Assistance Project, December 1, 2022, https://www.raponline.org/knowledge-center/taking-burn-out-of-heating-low-income-households.38
  39. D. Gibb, S. Thomas and J. Rosenow, “Metrics Matter: Efficient Renewable Heating and Cooling in the Renewable Energy Directive,” Regulatory Assistance Project, September 6, 2022, https://www.raponline.org/knowledge-center/metrics-matter-efficient-renewable-heating-cooling-renewable-energy-directive.39
  40. European Parliament, “Renewable Energy Directive – Amendments Adopted in Sept 2022,” September 14, 2022, https://www.europarl.europa.eu/doceo/document/TA-9-2022-0317_EN.pdf.40
  41. R. Lowes et al., “A Policy Toolkit for Global Mass Heat Pump Deployment,” Regulatory Assistance Project, November 14,
    2022, https://www.raponline.org/knowledge-center/policy-toolkit-global-mass-heat-pump-deployment. 41
  42. Chinese Ministry of Housing and Urban-Rural Development, “14th Five-Year' Building Energy Efficiency and Green Building Development Plan,” 2021, www.mohurd.gov.cn/gongkai/fdzdgknr/zfhcxjsbwj/202203/20220311_765109.html.42
  43. IEA, “World Energy Outlook 2022,” October 2022, https://www.iea.org/reports/world-energy-outlook-2022.43
  44. REN21 Policy Database. See Reference Table R1 in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.44
  45. G. De Clercq, “France Ends Gas Heaters Subsidies, Boosts Heat Pumps in Bid to Cut Russia Reliance,” Reuters, March 16, 2022, https://www.reuters.com/world/europe/france-ends-gas-heaters-subsidies-boosts-heat-pumps-bid-cut-russia-reliance-2022-03-16.45
  46. B. Epp, “Fund of EUR ٣ Billion for Decarbonising German District Heating,” Solar Thermal World, August 30, 2022, https://solarthermalworld.org/news/fund-of-eur-3-billion-for-decarbonising-german-district-heating.46
  47. Ministerio para la Transición Ecológica y el Reto Demográfico, “Real Decreto 477/2021, de 29 de junio, por el que se aprueba la concesión directa a las comunidades autónomas y a las ciudades de ceuta y melilla de ayudas para la ejecución de diversos programas de incentivos ligados al autoconsumo y al almacenamiento, con fuentes de energía renovable, así como a la implantación de sistemas térmicos renovables en el sector residencial, en el marco del plan de recuperación, transformación y resiliencia,” 2021, https://www.boe.es/eli/es/rd/2021/06/29/477; A. Rosell, “More Than EUR 1 Billion of Incentives Available in Spain,” Solar Thermal World, October 12, 2022, https://solarthermalworld.org/news/more-than-eur-1-billion-of-incentives-available-in-spain.47
  48. Government of the UK, “Ditching Costly Gas and Oil Is Cheaper Thanks to Heat Pump Scheme,” May 23, 2022, https://www.gov.uk/government/news/ditching-costly-gas-and-oil-is-cheaper-thanks-to-heat-pump-scheme.48
  49. E. Hougaard, “Energistyrelsen åbner for ansøgninger til tilskudsordning for etablering af eldrevne varmepumper og solvarmeanlæg til produktion af fjernvarme,” Energistyrelsen, July 12, 2022, https://ens.dk/presse/energistyrelsen-aabner-ansoegninger-til-tilskudsordning-etablering-af-eldrevne-varmepumper-og.49
  50. B. Epp, “EUR ٦٥ Million Provided for Solar District Heating in Kosovo,” Solar Thermal World, July 7, 2022, https://solarthermalworld.org/news/eur-65-million-provided-for-solar-district-heating-in-kosovo.50
  51. cking, “What the ‘Inflation Reduction Act of 2022' Means for Solar,” Solar Energy International, August 22, 2022, https://www.solarenergy.org/what-the-inflation-reduction-act-of-2022-means-for-solar.51
  52. United News of India, “UP Targets to Generate 22k MW Solar Energy in Next 5 Yrs,” November 16, 2022, http://www.uniindia.com/~/up-targets-to-generate-22k-mw-solar-energy-in-next-5-yrs/Business Economy/news/2861956.htm.52
  53. R. Desmornes, “The Inflation Reduction Act ‘Pumps Up' Heat Pumps,” HVAC Solutions, November 4,2022, https://www.hvac.com/resources/inflation-reduction-act-heat-pump-rebates; Rewiring America, “High-Efficiency Electric Home Rebate Act,” 2022, https://www.rewiringamerica.org/policy/high-efficiency-electric-home-rebate-act.53
  54. D. Gibb and M. Morawiecka, “Cleaning Up Heat: The Changing Economics for Heat Pumps in Poland,” Regulatory Assistance Project, November 7, 2022, https://www.raponline.org/knowledge-center/cleaning-up-heat-the-changing-economics-for-heat-pumps-in-poland.54
  55. Bercy Infos, “MaPrimeRénov': la prime pour la rénovation énergétique,” December 30, 2022, https://www.economie.gouv.fr/particuliers/prime-renovation-energetique.55
  56. Figure 6 from REN21 Policy Database, op. cit. note 44.56
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  58. Energy Foundation China, op. cit. note 57.58
  59. D. Gibb and A. Jahn, “‘Game On' for Germany's Heat Pump Transformation,” Regulatory Assistance Project, July 20, 2022, https://www.raponline.org/blog/game-on-germany-heat-pump-transformation.59
  60. N. Kurmayer, “Netherlands to Ban Fossil Heating from 2026, Make Heat Pumps Mandatory,” Euractiv, May 17, 2022, https://www.euractiv.com/section/energy-environment/news/netherlands-to-ban-fossil-heating-by-2026-make-heat-pumps-mandatory.60
  61. Data as of 9 February 2023, from Building Decarbonization Coalition, “Zero Emissions Building Ordinances,” 2022, https://www.buildingdecarb.org/zeb-ordinances.html.61
  62. Ibid.62
  63. L. Louis-Prescott and R. Golden, “How Local Governments and Communities Are Taking Action to Get Fossil Fuels Out of Buildings,” RMI, August 9, 2022, https://rmi.org/taking-action-to-get-fossil-fuels-out-of-buildings.63
  64. E. Pontecorvo, “California's 2030 Ban on Gas Heaters Opens a New Front in the War on Fossil Fuels,” Grist, September 26, 2022, https://grist.org/buildings/californias-2030-ban-on-gas-heaters-opens-a-new-front-in-the-war-on-fossil-fuels; New York State Public Service Commission, “PSC Breathes New Life into Popular Con Edison Clean Heat Program,” November 8, 2022, https://ar.dps.ny.gov/system/files/documents/2022/10/psc-breathes-new-life-into-popular-con-edison-clean-heat-program.pdf.64
  65. T. DiChristopher and A. Duquiatan, “States That Outlaw Gas Bans Account for 31% of US Residential/Commercial Gas Use,” S&P Global Commodity Insights, June 9, 2022, https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/states-that-outlaw-gas-bans-account-for-31-of-us-residential-commercial-gas-use-70749584.65
  66. European Commission, op. cit. note 32.66
  67. E. Christensen, “California's New Building Energy Efficiency Standards, Mandating Solar + Storage, Are Set to Go into Effect on January 1, 2023,” August 1, 2022, https://www.energytoolbase.com/newsroom/blog/californias-new-building-energy-efficiency-standards-mandating-solar-storage.67
  68. J. Spector, “California Is Finally Unlocking Community Solar for the Masses,” Canary Media, September 8, 2022, https://www.canarymedia.com/articles/solar/california-is-finally-unlocking-community-solar-for-the-masses.68
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  70. CTV News, “N.S. Government Kills Electric Utility's Bid to Impose ‘Net-Metering' Charge on Solar,” Atlantic, February 2, 2022, https://atlantic.ctvnews.ca/n-s-government-kills-electric-utility-s-bid-to-impose-net-metering-charge-on-solar-1.5764723.70
  71. IEA, op. cit. note 1.71
  72. Global Alliance for Buildings and Construction, “2022 Global Status Report for Buildings and Construction,” 2022, http://globalabc.org/our-work/tracking-progress-global-status-report.72
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  75. D. Rajeev, “Energy Conservation Bill 2022: Implications and Next Steps,” The Economic Times, December 28, 2022, https://economictimes.indiatimes.com/industry/renewables/energy-conservation-bill-2022-implications-and-next-steps/articleshow/96562493.cms.75
  76. T. Sawachi, “Context for Building Heating Systems and How Their Energy Efficiencies Are Evaluated in a Building Energy Code of Japan,” 8th IEA-Tsinghua Joint Workshop: Making Buildings Zero-Carbon Ready by 2030 – Near-term Solutions for Heating Systems, October 2022, https://iea.blob.core.windows.net/assets/9820c21f-47dc-431d-8b11-28b99dfab44c/
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  77. IEA, op. cit. note 21.77
  78. Based on USD 489.6 billion global new investment in renewable power capacity in 2022 (not including hydropower projects larger than 50 MW), from BloombergNEF, “Energy Transition Investment Trends 2023,” 2023, https://about.bnef.com/energy-transition-investment; 50% from M. Santamouris and K. Vasilakopoulou, “Present and Future Energy Consumption of Buildings: Challenges and Opportunities Towards Decarbonisation,” E-Prime – Advances in Electrical Engineering, Electronics and Energy, Vol. 1 (January 1, 2021): 100002, https://doi.org/10.1016/j.prime.2021.100002.78
  79. K. Mathiesen et al., “Putin's War Accelerates the EU's Fossil Fuel Detox,” Politico, October 12, 2022, https://www.politico.eu/article/vladimir-putin-war-ukraine-accelerates-eu-fossil-fuel-detox.79
  80. BloombergNEF, op. cit. note 78; IEA, “World Energy Investment 2022,” 2022, https://iea.blob.core.windows.net/assets/b0beda65-8a1d-46ae-87a2-f95947ec2714/WorldEnergyInvestment2022.pdf.80
  81. IEA, op. cit. note 80.81
  82. B. Epp, “37 MW Solar District Heating Plant in the Netherlands with Outstanding Features,” Solar Thermal World, November 11, 2022, https://solarthermalworld.org/news/37-mw-solar-district-heating-plant-in-the-netherlands-with-outstanding-features.82
  83. International District Energy Association, “Canada Infrastructure Bank, CIBC and Markham District Energy Close $270 Million District Energy Infrastructure Investment,” November 25, 2022, https://www.districtenergy.org/blogs/district-energy/2022/11/25/canada-infrastructure-bank-cibc-and-markham-distri.83
  84. B. Epp, “Fund of EUR 3 Billion for Decarbonising German District Heating,” Solar Thermal World, August 30, 2022, https://solarthermalworld.org/news/fund-of-eur-3-billion-for-decarbonising-german-district-heating; A. Walstad, “Germany Ploughs €3bn into Phasing out District Heating Gas,” Gas Outlook, August 18, 2022, https://gasoutlook.com/analysis/germany-ploughs-e3bn-into-phasing-out-district-heating-gas.84
  85. IEA, op. cit. note 80; Solar Heat Europe, “Solar Heat Market Report 2021,” December 2022, http://solarheateurope.eu/wp-content/uploads/2022/12/Solar_Heat_Market_Report-2021.pdf.85
  86. Solar Heat Europe, op. cit. note 85.86
  87. IEA, “Energy Efficiency 2022,” 2022, https://iea.blob.core.windows.net/assets/7741739e-8e7f-4afa-a77f-49dadd51cb52/EnergyEfficiency2022.pdf.87
  88. IEA, op. cit. note 80.88
  89. Ibid.89
  90. IEA, “Approximately 100 Million Households Rely on Rooftop Solar PV by 2030 – Analysis,” September 2022, https://www.iea.org/reports/approximately-100-million-households-rely-on-rooftop-solar-pv-by-2030.90
  91. IEA, “Solar PV – Analysis,” September 2022, https://www.iea.org/reports/solar-pv.91
  92. Ibid.92
  93. IEA Photovoltaic Power Systems Programme (PVPS), “Trends in PV Applications 2022,” 2022, https://iea-pvps.org/trends_reports/trends-2022; IEA, op. cit. note 91.93
  94. IEA PVPS, op. cit. note 93.94
  95. Ibid.95
  96. Ibid.96
  97. Ibid.97
  98. Fortum, “Fortum and Microsoft Announce World's Largest Collaboration to Heat Homes, Services and Businesses with Sustainable Waste Heat from New Data Centre Region,” March 17, 2022, https://www.fortum.com/media/2022/03/fortum-and-microsoft-announce-worlds-largest-collaboration-heat-homes-services-and-businesses-sustainable-waste-heat-new-data-centre-region; IrishCentral, “Heat Created by Amazon Data Center in Dublin to Be Used in Local Housing,” September 22, 2021, https://www.irishcentral.com/news/amazon-data-center-dublin-heat-local-housing; World Economic Forum, “Your Data Could Warm You Up This Winter, Here's How,” August 8, 2022, https://www.weforum.org/agenda/2022/08/sustainable-data-centre-heating; P. Judge, “Vienna Hospital to Get Waste Heat from Interxion Data Center,” Data Center Dynamics, April 27, 2022, https://www.datacenterdynamics.com/en/news/vienna-hospital-to-get-waste-heat-from-interxion-data-center.98
  99. IEA, op. cit. note 1.99
  100. International Renewable Energy Agency (IRENA), “Bioenergy for the Transition: Ensuring Sustainability and Overcoming Barriers,” August 2022, https://www.irena.org/publications/2022/Aug/Bioenergy-for-the-Transition.100
  101. N. Kurmayer, “As Winter Looms, Germans Increasingly Turn to Wood for Heating,” Euractiv, September 23, 2022, https://www.euractiv.com/section/energy/news/as-winter-looms-germans-increasingly-turn-to-wood-for-heating; Euronews, “Energy Crisis: Germans Turn to Wood Burning Stoves to Save on Gas,” November 11, 2022, https://www.euronews.com/green/2022/11/11/energy-crisis-in-germany-rising-trend-in-wood-burning-stoves-to-save-on-gas; H. Thompson, “Wood Pellet Shortages in France Cause Prices to Soar,” Connexionfrance, 15 September, 2022, https://www.connexionfrance.com/article/French-news/Wood-pellet-shortages-in-France-cause-prices-to-soar; D. Brooks, “Wood Pellets May Be Scarcer, and More Costly, This Winter,” NH Business Review, October 21, 2022, https://www.nhbr.com/wood-pellets-may-be-scarcer-and-more-costly-this-winter; United Nations Economic Commission for Europe, “Wood Energy on the Rise in Europe,” November 4, 2022, https://unece.org/climate-change/press/wood-energy-rise-europe.101
  102. IRENA, op. cit. note 100.102
  103. IEA, op. cit. note 21.103
  104. W. Weiss and M. Spörk-Dür, “Solar Heat Worldwide: Edition 2022,” May 2022, https://www.iea-shc.org/Data/Sites/1/publications/Solar-Heat-Worldwide-2022.pdf.104
  105. Ibid.105
  106. B. Epp, “IEA SHC Solar Award Winner: Social Housing Project in Namibia,” Solar Thermal World, October 18, 2022, https://solarthermalworld.org/news/iea-shc-solar-award-winner-social-housing-project-in-namibia; Southern African Solar Thermal Demonstration and Training Initiative (SOLTRAIN), “Solar Thermal Roadmaps,” https://soltrain.org/assets/roadmaps, accessed November 20, 2022.106
  107. J. Meyer, “Strongly Downsized, But Crisis-Ridden Solar Collector Industry in Germany,” Solar Thermal World, August 2, 2022, https://solarthermalworld.org/news/strongly-downsized-but-crisis-ridden-solar-collector-industry-in-germany; J. Meyer, “Survey of German Solar Collector Industry: ‘Daily Struggle to Procure Materials,'” Solar Thermal World, August 4, 2022, https://solarthermalworld.org/news/survey-of-german-solar-collector-industry-daily-struggle-to-procure-materials; E. Gerden, “Russian Solar Thermal Industry in Deep Crisis,” Solar Thermal World, September 18, 2022, https://solarthermalworld.org/news/russian-solar-thermal-industry-in-deep-crisis.107
  108. Weiss and Spörk-Dür, op. cit. note 104; B.Epp, “37 MW solar district heating plant in the Netherlands with outstanding features,” Solar Thermal World, November 11, 2022, https://solarthermalworld.org/news/37-mw-solar-district-heating-plant-in-the-netherlands-with-outstanding-features.108
  109. Weiss and Spörk-Dür, op. cit. note 104.109
  110. J. Lund and A. Toth, “Direct Utilization of Geothermal Energy 2020 Worldwide Review,” Geothermics, Vol. 90 (February 2021): 101915, https://www.sciencedirect.com/science/article/pii/S0375650520302078. 110
  111. Ibid.111
  112. Ibid.112
  113. C. Cariaga, “Sinopec Launches Expanded Geothermal Heating in China for Winter,” ThinkGeoEnergy, November 17, 2022, https://www.thinkgeoenergy.com/sinopec-launches-expanded-geothermal-heating-for-winter.113
  114. Ibid.; D. Olick, “Largest-Ever Geothermal Grid Under This Texas Housing Development Is Saving Homeowners Serious Money,” CNBC, 2022, https://www.cnbc.com/2022/09/01/geothermal-powered-housing-development-saves-homeowners-big-bucks.html; US Department of Energy, “Community Geothermal Heating and Cooling Design and Deployment,” July 12, 2022, https://www.energy.gov/eere/geothermal/articles/community-geothermal-heating-and-cooling-design-and-deployment.114
  115. IEA Geothermal, “2021 Annual Report,” October 2022, https://iea-gia.org/publications-2/annual-reports.115
  116. C. Cariaga, “Canada to Invest in Geothermal Projects in Nova Scotia,” ThinkGeoEnergy, November 10, 2022, https://www.thinkgeoenergy.com/canada-to-invest-on-geothermal-projects-in-nova-scotia.116
  117. C. Cariaga, “EGEC Market Report 2021 Highlights Post-COVID Resurgence of Geothermal,” ThinkGeoEnergy, June 14, 2022, https://www.thinkgeoenergy.com/egec-market-report-2021-highlights-post-covid-resurgence-of-geothermal. 117
  118. Ibid. 118
  119. C. Cariaga, “Meudon, France Targets Geothermal District Heating by 2026,” ThinkGeoEnergy, November 7, 2022, https://www.thinkgeoenergy.com/meudon-france-targets-geothermal-district-heating-by-2026; C. Cariaga, “Germany Aims for 100 New Geothermal Projects by 2030,” ThinkGeoEnergy, November 11, 2022, https://www.thinkgeoenergy.com/germany-aims-for-100-new-geothermal-projects-by-2030; C. Cariaga, “Geothermal Heating Plant in Torun, Poland Officially Opens,” ThinkGeoEnergy, October 13, 2022, https://www.thinkgeoenergy.com/geothermal-heating-plant-in-torun-poland-officially-opens. 119
  120. C. Cariaga, “Wien Energie to Build First Geothermal Heating Plant in Vienna, Austria,” ThinkGeoEnergy, November 15, 2022, https://www.thinkgeoenergy.com/wien-energie-to-build-first-geothermal-heating-plant-in-vienna-austria.120
  121. J. Rosenow et al., “Heating Up the Global Heat Pump Market,” Nature Energy (September 7, 2022): 1-4, https://doi.org/10.1038/s41560-022-01104-8; IEA, op. cit. note 26.121
  122. Installatore Professionale, “Climatizzazione: incrementi a tre cifre per le pompe di calore idroniche nel primo semestre 2022,” July 29, 2022, https://www.installatoreprofessionale.it/news/905-climatizzazione-incrementi-a-tre-cifre-per-le-pompe-di-calore-idroniche-nel-primo-semestre-2022.html; M. Beerling, “Reactie Vereniging Warmtepompen op Gasmonitor 2022,” Vereniging Warmtepompen, September 5, 2022, https://warmte-pompen.nl/reactie-vereniging-warmtepompen-op-gasmonitor-2022; PORT PC, “Ponad dwukrotny wzrost sprzedaży powietrznych pomp ciepła w I poł. 2022 roku!,” Polska Organizacja Rozwoju Technologii Pomp Ciepła, August 17, 2022, https://portpc.pl/ponad-dwukrotny-wzrost-sprzedazy-powietrznych-pomp-ciepla-w-i-pol-2022-roku; J. Hirvonen, “Record High Sales Growth of 80% Recorded for Heat Pumps in the First Six Months of the Year in Finland,” SULPU, July 19, 2022, https://www.sulpu.fi/record-high-sales-growth-of-80-recorded-for-heat-pumps-in-the-first-six-months-of-the-year-in-finland; Bundesverband der DeutschenHeizungsindustrie, “Heizungsindustrie: Solider Markt in Dynamischem Umfeld,” August 12, 2022, https://www.bdh-industrie.de/presse/pressemeldungen/artikel/heizungsindustrie-solider-markt-in-dynamischem-umfeld; Norsk Varmepumpeforening, “Boligeiere har skjønt det- når kommer bedriftene? Varmepumpeforeningen,” 2022, https://www.novap.no/artikler/boligeiere-vil-spare-strom-hvor-blir-det-av-bedriftene.122
  123. Air Conditioning, Heating & Refrigeration Institute, “AHRI Releases June 2022 U.S. Heating and Cooling Equipment Shipment Data,” August 12, 2022, https://www.ahrinet.org/sites/default/files/2022-09/June2022StatisticalRelease.pdf.123
  124. IEA, op. cit. note 21; T. Nowak, “LinkedIn Post on Heat Pump Manufacturer Announcements,” 2022, https://www.linkedin.com/posts/thomasnowakeu_conversation-activity-6970985100586950657-VNc1.124
  125. IEA, op. cit. note 21. 125
  126. IEA, op. cit. note 1.126
  127. C. Delmastro, IEA, personal communication with REN21, October 25, 2022.127
  128. European Commission, “Innovative Waste Heat Recovery Experiment in Sweden,” https://cordis.europa.eu/article/id/436169-innovative-waste-heat-recovery-experiment-in-sweden, accessed November 20, 2022; Delmastro, op. cit. note 127; J. Yoon, OECD, personal communication with REN21, November 15, 2022.128
  129. T. Gualtieri and K. Pohjanpalo, “How Cold Seawater Can Heat Helsinki's Homes,” Bloomberg, October 18, 2022, https://www.bloomberg.com/news/articles/2022-10-18/helsinki-utility-finds-a-surprising-heat-source-icy-seawater.129
  130. Sustainable Energy for All, “Chilling Prospects: Tracking Sustainable Cooling for All,” 2022, https://www.seforall.org/chilling-prospects-2022; IEA, “Space Cooling – Analysis,” 2022, https://www.iea.org/reports/space-cooling.130
  131. IEA, op. cit. note 130.131
  132. Delmastro, op. cit. note 127.132
  133. K. Cromartie, “GEG Successfully Breaks Ground on Geothermal Cooling Project in India,” September 6, 2022, http://gegpower.is/geg-successfully-breaks-ground-on-geothermal-cooling-project-in-india; A. Richter, “US Firm Plans Geothermal Deep Closed-Loop Cooling System in Bali, Indonesia,” ThinkGeoEnergy, March 19, 2022, https://www.thinkgeoenergy.com/us-firm-plans-geothermal-deep-closed-loop-cooling-system-in-bali-indonesia.133

Renewables in Energy Supply | Market Developments

Market Developments

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Total global installed renewable power capacity reached 3,481 gigawatts in 2022.

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Almost 10% of the total installed renewable power capacity was added in 2022.

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Renewables cover 30% of global electricity generation, with solar PV and wind power representing 12%.

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China, the United States, India, Brazil and Spain installed 66% of the new solar PV capacity in 2022.

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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.

Industry in Focus | Market Developments in Industry

Market Developments

Most of the energy used in industry (around 75%) is for process heat, with the rest going to electrical operations (such as cooling and powering motors) and non-process activities (such as lighting). 50

A key trend is electrification via renewables, which is generally easier to achieve for industrial processes that require low- or medium-temperature heat (below 400 degrees Celsius, °C). Renewable electrification occurs mainly in the food and beverage, transport equipment, machinery, and pulp and paper industries, although it has great potential in chemicals, pharmaceuticals and textiles, notably through the installation of heat pumps. 51 Industries with higher temperature requirements for process heat – such as cement, chemicals, and iron and steel – are harder to electrify; however, the use of electric arc furnaces in steelmaking now represents around 25% of global production. 52

In parallel, many industries that already use high shares of electricity in their operations are switching to renewable electricity supply. Steel and cement companies, driven by net zero commitments, are increasingly using PPAs to procure renewable power for their operations. 53 In 2022, the steel manufacturer ArcelorMittal invested in wind and solar plants in Argentina and India, and German steelmakers such as the GMH Group and Salzgitter signed PPAs with renewable providers to power their electric arc furnaces. 54 Cement manufacturers that signed renewable PPAs included Cemex in Spain, Suez Cement in Egypt, Opterra in Germany and Lafarge in Hungary. 55 In the chemical sector, the global manufacturer BASF committed to PPAs at various European and US locations. 56 In addition, mining companies have developed decentralised renewable energy projects in Australia, Madagascar and Mali that provide reliable and affordable energy for both mine sites and local communities. 57

Globally, the number of eco-industrial parks has grown rapidly, with the aim of creating resource-efficient industrial parks that are more competitive, risk-resilient and attractive for investment. 58
By integrating processes within a cluster – such as generating low-cost renewable power and heat on-site – industries can share energy and material streams. 59 Vietnam's Decree 35 relies on policies and incentives to boost the eco-transition of local industrial parks to attract global manufacturers. 60 In 2022, four industrial clusters in Belgium, the Netherlands and the US states of Ohio and Texas joined the World Economic Forum's “Transitioning Industrial Clusters Towards Net Zero” initiative. 61 Eco-industrial parks also are being developed in Colombia, Egypt, Indonesia, Peru, South Africa, Ukraine and Vietnam, with support from the United Nations Industrial Development Organization (UNIDO). 62 (See Snapshot: South Africa)

Because of a lack of financing, the adoption of renewable electricity by small and medium-sized industries represents a largely untapped solution area for low-carbon industrialisation, particularly in developing countries. 63 (See Snapshot: Pakistan) However, in some countries smaller-scale businesses have been able to access co-financing for energy efficiency and self-consumption of renewables. Chile expanded its pilot programme “Put your energy to your SME” in 2021, and France's new climate action loan supports the energy transition of small and medium-sized businesses. 64

In general, the uptake of renewables and electrification in industry varies greatly depending on the specific sub-sector and on the processes and technologies being used. 65 (See Figure 8)

FIGURE 8.

Renewable Energy Share and Electrification Rates in Selected Industry Sub-Sectors, 2020

 FIGURE 8.

Source: See endnote 65 for this module.

Snapshot.SOUTH AFRICA

Clustering development to meet energy demand and decarbonisation commitments

Mpumalanga province in eastern South Africa is using a cluster development model to encourage the growth of renewable energy manufacturing. The regional economy depends heavily on coal exploitation, accounting for around 80% of South Africa's coal production and hosting most of the country's coal-fired power plants and coal mining activities. Mpumalanga also is rich in wind and solar resourcesi, with a combined grid capacity of 6,520 megawatts (MW). These assets make the province an ideal location for large-scale renewable energy projects that take advantage of former coal mining sites and the existing transmission infrastructure.

Read more Collapse

Clustering development to meet energy demand and decarbonisation commitments

Mpumalanga province in eastern South Africa is using a cluster development model to encourage the growth of renewable energy manufacturing. The regional economy depends heavily on coal exploitation, accounting for around 80% of South Africa's coal production and hosting most of the country's coal-fired power plants and coal mining activities. Mpumalanga also is rich in wind and solar resourcesi, with a combined grid capacity of 6,520 megawatts (MW). These assets make the province an ideal location for large-scale renewable energy projects that take advantage of former coal mining sites and the existing transmission infrastructure.

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In May 2022, the Mpumalanga Department of Economic Development and Tourism, in collaboration with GreenCape, UKPACT and Germany's technical co-operation agency GIZ, launched the Mpumalanga Green Cluster Agency, an independent entity that seeks to overcome investment barriers and unlock new economic opportunities, including in renewables. The Green Cluster aligns with recent policies and legislation aimed at decarbonising South Africa's economy, such as the national Renewable Energy Masterplan, which envisions opportunities to develop renewable manufacturing value in key regions like Mpumalanga.

In July 2022, South Africa removed the 100 MW cap on self-generation of electricity without a licence. As a result, energy-intensive users such as industrial and mining companies can now generate or buy electricity from independent power producers on a larger scale. Mining companies already have committed to developing 4 gigawatts (GW) of renewables nationally, and as of July they had registered 73 self-generation projects totalling 295 MW. In Mpumalanga, the market is expected to grow to around 2 GW by 2030.

Additionally, South Africa's state-owned utility Eskom is set to decommission up to 11 GW of coal-fired generation by 2030. This presents an opportunity to re-purpose and re-power coal plants and adjacent land. Eskom issued tenders in April 2022 to lease land for renewable energy projects, and in June the utility announced that it had selected 18 companies to lease 4,000 hectares to develop renewable projects totalling 1.8 GW.

i Wind speeds in the province are between 4 and 7 metres per second at 100 metres above ground level, which is sufficient for commercially viable wind farms. The long-term average global horizontal irradiation in Mpumalanga ranges between 1,752 and 2,044 kilowatts per square metre annually (only around 16% lower than in the Northern Cape).

Source: See endnote 62 for this module.

The use of modern solid bioenergy in industry increased 46% between 2011 and 2021, rising from 8.2 exajoules (EJ) to
12.0 EJ. 66 However, the share of this bioenergy use relative to total final energy consumption increased by only 15%.67 Driven by net zero commitments, various pulp and paper companies adopted bioenergy during 2022. For example, South Africa's Sappi replaced coal boilers with biomass, Finno-Swedish Stora Enso announced the replacement of fuel oil with renewable pitch oil, and Finland's Metsä invested in biomass electricity generation to help achieve its 2030 fossil-free energy target. 68

Examples of biogas use in industry are found mainly in the food sector, where several leading manufacturers operate anaerobic digestion facilities to generate heat and electricity for factories. 69 In 2022, Danone (France) committed to increase its use of biogas (as well as solar and biomass) as part of its decarbonisation plan, and in 2021 both Unilever (UK) and Starbucks (US) joined the US Biogas Alliance. 70

The use of biomass as an industry feedstock remains limited. In 2021, global production of biomass-based plastic accounted for less than 1% of global plastic production. 71 Bio-based chemicals such as methanoli could be used as key substitutes for oil in decarbonising the chemical industry. 72

Solar thermal can be an efficient means of providing zero-carbon heat and a cost-effective alternative to the electrification of heat. Although solar thermal has been used mainly for low-temperature applications, new designs serve applications with temperature requirements of up to 400°C. 73 However, high initial capital costs and low deployment rates have limited uptake, even in sectors with significant technical and economic potential, such as textiles and food. 74 As of 2022, there were an estimated 136 solar heat projects in industry, most of them in the food and beverage sector, including large-scale projects at malting plants in Croatia, France and Spain. 75 A recent technical development is the commercialisation of a versatile solar hot water solution capable of generating high operating temperatures, including for industrial heating processes. 76

High-temperature geothermal energy can be used to generate electricity or a combination of heat and power. 77 Direct geothermal use accounted for only 1.6% of the total thermal energy use in industry in 2019, mainly in mining and food manufacturing. 78 Barriers to wider application include resource availability and high upfront costs. 79 The International Geothermal Association has sought to scale direct industrial applications in the agri-food sector in South America and the Caribbean. 80 In Europe, the oil, gas and chemicals company OMV started two geothermal projects in 2022: one in Austria using heat as a direct carrier and one in Germany for electricity generation. 81 In the United States, a research programme aims to replace diesel fuel with geothermal to power mining operations, particularly in remote areas. 82 Meanwhile, start-ups in the United Kingdom are developing technologies to extract lithium using geothermal waters, to replace the energy-intensive extraction practice of heating seawater brine to high temperatures; two pilot sites were expected by spring 2023. 83

Heat pumps are an energy-efficient alternative to traditional heating and cooling systems and a key technology for electrifying industry. 84 The growing focus on efficiency, combined with the recent rise in fossil gas prices (especially in Europe), could drive market uptake among the three main industrial users of heat pumps: the pulp and paper, food and beverage, and chemicals sectors. 85 However, technical barriers and high initial costs continue to impede more generalised use. 86

As of 2022, commercial trials of heat pumps operating at 160°C were ongoing, with prototypes also available for heat pumps to achieve 200°C. 87 In the context of the EU-funded PUSH2HEAT project, launched in October 2022, technologies for processes of 90°C to 160°C will be demonstrated at four industrial sites in the food, paper and chemicals sub-sectors, with the aim of increasing the deployment of heat pump technologies for heat upgrade. 88 On the demand side, interest is rising in heat pumps that have additional performance and energy-saving features, such as re-using low-temperature waste heat (for example, from refrigeration processes). 89

Renewable hydrogen is being discussed mainly in the context of decarbonising energy-intensive processes, in particular in petrochemicals and steelmaking. Despite growing momentum for renewable hydrogen, applications remain limited due to high production costs and the need for related infrastructure. 90 In 2022, two Important Projects of Common European Interest were approved in the context of REPowerEU, aiming to integrate green hydrogen into industrial steel, cement and glass processes. 91 Producing high-value-added products such as renewable ammonia (or steel) for domestic production or for export to the EU is seen as a way to sustainably industrialise countries and boost renewable hydrogen uptake in Africa, particularly in South Africa and other members of the Africa Green Hydrogen Alliance (Egypt, Kenya, Mauritania, Morocco and Namibia). 92

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Snapshot.PAKISTAN

Making Progress in Decarbonising Industry with Renewables

Pakistan, which experienced devastating floods in 2022, faces an urgent need to decarbonise its industry sector and mitigate the risks of climate change. The country aims to halve its emissions by 2030 while also expanding energy access. A quarter of the population, mainly in rural areas, still lacks access to electricity.

Read more Collapse

Making Progress in Decarbonising Industry with Renewables

Pakistan, which experienced devastating floods in 2022, faces an urgent need to decarbonise its industry sector and mitigate the risks of climate change. The country aims to halve its emissions by 2030 while also expanding energy access. A quarter of the population, mainly in rural areas, still lacks access to electricity.

In 2022, several renewable energy initiatives were undertaken to promote economic development while developing local industry. For example, the Nationally Appropriate Mitigation Actions (NAMA) facility provided funding and advisory support to help small and medium-sized businesses invest in energy efficiency and renewables in the textile industry, which is Pakistan's largest industrial employer and contributes around 6% of national greenhouse gas emissions. In the sugar industry, the EU supported a programme to help sugar mills produce their own electricity from sugarcane bagasse and feed surplus power to the grid.

In addition, UNIDO has provided small businesses and micro-enterprises in Pakistan with interest-free loans to procure and install renewables. Under this scheme, the country added 1.3 MW of solar photovoltaics (PV) in 2022, generating 1,825 megawatt-hours of electricity per year. The solar power enabled businesses to improve their productivity and increase incomes 25% on average, while reducing their vulnerability to power outages and eliminating more than 827 tonnes of CO2 emissions annually. In addition, the UK government, through the Climate Finance Accelerator, announced a programme to install 150 MW of distributed solar PV at commercial and industrial sites under a pay-as-you-go model.

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Source: See endnote 63 for this chapter.

Steelmaking using renewable hydrogen has experienced strong momentum globally, with more than 70 projects under development and 10 new projects announced in 2022. 93 Major European manufacturers such as ArcelorMittal and ThyssenKrupp have developed at least 19 pilot and large-scale projects in Europe, including in France, Germany, the Netherlands, Spain and Sweden. 94 In China, which produces over half the world's steel, hydrogen-based projects are being developed in Hebei, Guangdong and Inner Mongolia. 95 Tangshan city announced a plan in 2022 to become a hydrogen production hub and to support local steelmakers in using hydrogen-based direct-reduced iron (DRI). 96 Most of the hydrogen will be produced using coke oven gas, but solar power plants will also be built to produce renewable hydrogen. 97 Overall, however, hydrogen-run DRI plants remain limited. 98 A key factor impeding the conversion to DRI plants in Asia is the relatively young age of the conventional equipment in steel plants, which makes it financially difficult to justify their conversion. 99

The production of ammonia – a key product in the fertiliser and chemical industries – using renewable hydrogen is still in the early stages of development and commercialisation, and further efforts are needed to improve its cost efficiency and scalability. 100 Around 54 projects exist currently, notably in Australia, Mauritania and Oman, although projects also have been announced in Latin America, particularly in Chile, which is rich in wind and solar energy. 101 The first renewable hydrogen-based ammonia plant became operational in 2021 in Spain, while the first gigawatt-scale renewable ammonia plant is being built in Saudi Arabia and set to begin operations in 2025. 102 In 2022, the Zero Carbon Certification Scheme pre-certified Yara International's green ammonia plant in Western Australia in recognition of the company's commitment to using energy from on-site solar PV. 103

Footnotes

i Methanol is a key chemical product, contributing to 10% of total greenhouse gas emissions from chemicals. It is produced mainly from oil today but also can be produced from biomass feedstocks, including forestry and agricultural waste and by-products; biogas from landfills, sewage and municipal solid waste; and black liquor from the pulp and paper industry.

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  2. International Energy Agency (IEA), World Energy Statistics Database, 2022, www.iea.org/statistics, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).2
  3. Ibid.3
  4. Ibid.4
  5. IEA, “Industry – Analysis,” September 2022, https://www.iea.org/reports/industry. 5
  6. Ibid.6
  7. IEA, op. cit. note 2. Figure 7 from idem.7
  8. IEA, op. cit. note 2. 8
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  10. IEA, “World Energy Outlook 2022,” 2022, https://iea.blob.core.windows.net/assets/830fe099-5530-48f2-a7c1-11f35d510983/WorldEnergyOutlook2022.pdf.10
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  63. Vienna Energy Forum, op. cit. note 11. Snapshot: Pakistan based on the following sources: United Nations Development Programme Climate Promise, “Pakistan,” November 18, 2022, https://climatepromise.undp.org/what-we-do/where-we-work/pakistan; Trading Economics, “Pakistan – Access to Electricity (% of Population) – 2023 Data 2024 Forecast 1990-2020 Historical,” https://tradingeconomics.com/pakistan/access-to-electricity-percent-of-population-wb-data.html, accessed January 4, 2023; NAMA Facility, “Pakistan – Decarbonising Textile Manufacturing,” https://nama-facility.org/projects/pakistan-decarbonising-textile-manufacturing, accessed January 5, 2023; Delegation of the European Union to Pakistan, “Implementation of Resource and Energy Efficient Technologies (IREET) in the Sugar Sector of Pakistan,” August 26, 2020, https://www.eeas.europa.eu/delegations/pakistan/implementation-resource-and-energy-efficient-technologies-ireet-sugar-sector_en; Global Environment Facility and UNIDO, “Sustainable Energy Initiative for Industries in Pakistan,” 2022, https://www.thegef.org/projects-operations/projects/4753; “UK Announces First Projects for Pakistan's ‘Climate Finance Accelerator' Initiative,” Pakistan Today, February 11, 2022, https://www.pakistantoday.com.pk/2022/11/02/uk-announces-first-projects-for-pakistans-climate-finance-accelerator-initiative.63
  64. Chilean Ministry of Energy, “Ministerio de Energía Lanza Concurso Ponle Energía a Tu Pyme,” August 3, 2021, https://energia.gob.cl/noticias/nacional/ministerio-de-energia-lanza-concurso-ponle-energia-tu-pyme; Les-Aides.Fr, “Climate Action Loan,” https://les-aides.fr/aide/aFCf3w/bpifrance/pret-action-climat.html, accessed February 13, 2023; Ministry of the Economy, Finance and Industrial and Digital Sovereignty of France, “Aides aux entreprises pour favoriser leur transition écologique,” https://www.economie.gouv.fr/cedef/aides-entreprises-transition-ecologique, accessed February 13, 2023.64
  65. IEA, op. it. note 9; IEA, op. cit. note 15; IEA, “Chemicals – Analysis,” September 2022, https://www.iea.org/reports/chemicals; Accenture, “Industrial Clusters. Working Together to Achieve Net Zero,” 2021, https://www.accenture.com/_acnmedia/PDF-147/Accenture-WEF-Industrial-Clusters-Report.pdf. Figure 8 from IEA, op. cit. note 2.65
  66. IEA, op. cit. note 2.66
  67. IEA, “Bioenergy Use by Sector and Share of Modern Bioenergy in Total Final Consumption in the Net Zero Scenario, 2010-2030,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/bioenergy-use-by-sector-and-share-of-modern-bioenergy-in-total-final-consumption-in-the-net-zero-scenario-2010-2030.67
  68. Sappi Global, “Co-creating a Shift from Coal to Renewables at Gratkorn Mill,” https://www.sappi.com/fr/decarbonisation-at-gratkorn-mill-in-austria, accessed February 13, 2023; Sappi Global, “Transitioning to Bioenergy at Kirkniemi Mill,” https://www.sappi.com/fr/transitioning-to-bioenergy-at-kirkniemi-mill, accessed February 13, 2023; Bioenergy International, “Stora Enso to Replace Heavy Fuel Oil at Enocell,” May 1, 2022, https://bioenergyinternational.com/stora-enso-to-replace-heavy-fuel-oil-at-enocell; Metsä Group, “Renewable energy fuels the majority of our mills,” https://www.metsagroup.com/metsafibre/sustainability/sustainability-targets-and-progress/#:~:text=Our%20goal%20is%20, accessed February 13, 2023; Afry, “Shift toward Biomass Based Electricity at Metsä Board Husum, Sweden,” https://afry.com/en/project/shift-toward-biomass-based-electricity-metsa-board-husum-sweden, accessed February 13, 2023.68
  69. S. de Groot et al., “The Growing Competition Between the Bioenergy Industry and the Feed Industry,” Wageningen University & Research, June 29, 2022, https://fefac.eu/wp-content/uploads/2022/07/22_DOC_106.pdf.69
  70. Danone, “Danone Announces Re-Fuel Danone: A Global Energy Excellence Programme to Drive Energy Efficiency, Resilience and Decarbonisation Journey,” November 17, 2022, https://www.danone.com/media/press-releases-list/danone-announces-re-fuel-danone.html; G. Fuh, “Danone Builds Bioenergy Plant to Mitigate Climate Change and Endorse Circularity,” BECIS, June 17, 2022, https://be-cis.com/danone-builds-bioenergy-plant-to-mitigate-climate-change-and-endorse-circularity; J. Hughes, “Unilever and Starbucks Join Biogas Alliance,” World Biogas Association, January 22, 2021, https://www.worldbiogasassociation.org/unilever-and-starbucks-join-biogas-alliance.70
  71. IRENA, op. cit. note 9.71
  72. IRENA, “Innovation Outlook: Renewable Methanol,” January 2021, https://www.irena.org/publications/2021/Jan/Innovation-Outlook-Renewable-Methanol.72
  73. KeepItGreen, “How Manufacturers Are Developing and Using Renewable Energy,” Smart Cities Dive, https://www.smartcitiesdive.com/ex/sustainablecitiescollective/how-manufacturers-are-developing-and-using-renewable-energy/1175001, accessed December 15, 2022. 73
  74. Ibid.74
  75. SHIP Plants Database, “World Map of Solar Thermal Plants,” http://ship-plants.info/solar-thermal-plants-map?industry_sector=4, accessed December 23, 2022; B. Epp, “10 MW Solar Plant Heats Air for Malting Plant in France,” Solar Thermal World, September 28, 2021, https://solarthermalworld.org/news/10-mw-solar-plant-heats-air-malting-plant-france; A. Rosell, “Heat Purchase Agreements on the Rise in Spain,” Solar Thermal World, August 10, 2022, https://solarthermalworld.org/news/heat-purchase-agreements-on-the-rise-in-spain; B. Epp, “Innovation Fund Approves EUR 4.5 Million for Croatian SHIP Plant,” Solar Thermal World, September 16, 2021, https://solarthermalworld.org/news/innovation-fund-approves-eur-45-million-croatian-ship-plant.75
  76. C. Erber, “ClimAccelerator Start-up Naked Energy Taps into Solar Thermal,” ClimAccelerator, June 3, 2022, https://climaccelerator.climate-kic.org/news/solar-thermal-energy-an-industry-with-untapped-potential.76
  77. Planète Énergies, “Using High-Temperature Geothermal Energy to Generate Electricity,” April 28, 2021, https://www.planete-energies.com/en/medias/close/using-high-temperature-geothermal-energy-generate-electricity.77
  78. J. Lund and A. Toth, “Direct Utilization of Geothermal Energy 2020 Worldwide Review,” Geothermics, Vol. 90 (February 1, 2021): 101915, https://doi.org/10.1016/j.geothermics.2020.101915.78
  79. BloombergNEF and WBCSD, op. cit. note 50.79
  80. International Geothermal Association, “Webinar: Scaling-up Geothermal Direct Use for Industrial Applications in Latin America,” August 8, 2021, https://www.lovegeothermal.org/webinar-scaling-up-geothermal-direct-use-for-industrial-applications-in-latin-america; International Geothermal Association, “Call for Geothermal Direct Use Projects in Latin America and Caribbean,” November 22, 2022, https://www.lovegeothermal.org/call-for-geothermal-direct-use-projects-in-latin-america-and-caribbean.80
  81. OMV, “OMV Starts Two Geothermal Projects,” October 3, 2022, https://www.omv.com/en/news/221003-omv-starts-two-geothermal-projects.81
  82. A. Levine et al., “Mining G.O.L.D. (Geothermal Opportunities Leveraged Through Data): Exploring Synergies Between the Geothermal and Mining Industries,” US National Renewable Energy Laboratory, 2022, https://www.nrel.gov/docs/fy22osti/81946.pdf.82
  83. Cornish Lithium Plc, “Direct Lithium Extraction,” https://cornishlithium.com/projects/lithium-in-geothermal-waters/direct-lithium-extraction, accessed December 23, 2022; Jelena Temunovic, “Cornish Lithium Set for a Momentous 2023 Following Significant Progress in 2022,” Cornish Lithium Plc, December 20, 2022, https://cornishlithium.com/company-announcements/cornish-lithium-set-for-a-momentous-2023-following-significant-progress-in-2022.83
  84. IEA, op. cit. note 51; GEA, “Decarbonizing Industry, One Heat Pump Installation at a Time,” September 21, 2022, https://www.gea.com/en/stories/decarbonizing-industry-one-heat-pump-installation.jsp.84
  85. “Smart Integration of HP with Energy Storage and Solar Photo Voltaics,” HPT Magazine, Vol. 40, No. 3 (2022), https://issuu.com/hptmagazine/docs/hpt_magazine_no3_2022; Technavio, “Industrial Heat Pumps Market by End-User, Type and Geography – Forecast and Analysis 2023-2027,” December 2022, https://www.technavio.com/report/industrial-heat-pumps-market-industry-analysis; “Global Industrial Heat Pumps Market 2017-2021: Industry Analysis and Forecasts by Technavio,” July 12, 2017, https://www.businesswire.com/news/home/20170712006252/en/Global-Industrial-Heat-Pumps-Market-2017-2021-Industry-Analysis-and-Forecasts-by-Technavio; IEA, op. cit. note 51. 85
  86. IEA, op. cit. note 51; Technavio, op. cit. note 85. 86
  87. Bronswerk Heat Transfer, “Industry – Pulp & Paper,” https://www.bronswerk.com/industry-pulp-paper, accessed December 21, 2022; IEA, op. cit. note 51. 87
  88. European Heat Pump Association, “PUSH2HEAT: Pushing Forward the Market Potential of Heat Upgrade Technologies,” November 4, 2022, https://www.ehpa.org/press_releases/push2heat-pushing-forward-the-market-potential-of-heat-upgrade-technologies.88
  89. WBCSD, “Industrial Heat Pumps: It's Time to Go Electric,” September 2022, https://www.wbcsd.org/contentwbc/download/14846/211001/1; GEA, op. cit. note 84; Bronswerk Heat Transfer, op. cit. note 87; Technavio, op. cit. note 85; gCaptain, “Climeon Launches New Waste Heat Recovery Technology,” September 13, 2022, https://gcaptain.com/climeon-launches-new-waste-heat-recovery-technology.89
  90. IEA, op. cit. note 15; Vienna Energy Forum, op. cit. note 11.90
  91. European Commission, “State Aid: Commission Approves Up to €5.2 Billion of Public Support by Thirteen Member States for the Second Important Project of Common European Interest in the Hydrogen Value Chain,” September 21, 2022, https://ec.europa.eu/commission/presscorner/detail/en/ip_22_5676; European Commission, “Hydrogen,” https://energy.ec.europa.eu/topics/energy-systems-integration/hydrogen_en, accessed December 13, 2022.91
  92. L. Gómez, “Natural Gas and Renewable Hydrogen in Africa and Cooperation Opportunities with the EU,” Global Forum on Sustainable Energy, https://www.gfse.at/fileadmin/user_upload/gfse_policy_brief_gas_africa_v7_clean.pdf, accessed December 19, 2022; C. Owen-Burge, “Green Hydrogen Could Sustainably Industrialise Africa and Boost GDP by 6 to 12% in Six Key Countries – New Report,” Climate Champions, November 15, 2022, https://climatechampions.unfccc.int/unlocking-africas-green-hydrogen-potential; G. Müller, “Green Hydrogen: The Energy Opportunity for Decarbonization and Developing Countries,” Industrial Analytics Platform, November 2022, https://iap.unido.org/articles/green-hydrogen-energy-opportunity-decarbonization-and-developing-countries.92
  93. World Economic Forum, op. cit. note 11; Leadership Group for Industry Transition, “Green Steel Tracker,” https://www.industrytransition.org/green-steel-tracker, accessed December 22, 2022.93
  94. O.Wallach, Visual Capitalist,, “Green Steel: Decarbonising with Hydrogen-Fueled Production,” September 28, 2022, https://www.visualcapitalist.com/sp/green-steel-decarbonising-with-hydrogen-fueled-production.94
  95. J. Zhang, “For Steel Sector, China's Decarbonization Is a Costly Quest,” S&P Global, May 19, 2022, https://www.spglobal.com/commodityinsights/en/market-insights/blogs/metals/051922-green-steel-china-decarbonization-dri.95
  96. World Economic Forum, op. cit. note 11; China Dialogue, “China's Steel Capital to Turn Itself into a Hydrogen Hub,” July 7, 2022, https://chinadialogue.net/en/digest/chinas-steel-capital-to-turn-itself-into-a-hydrogen-hub.96
  97. World Economic Forum, op. cit. note 11; China Dialogue, op. cit. note 96.97
  98. Zhang, op. cit. note 95.98
  99. E. Ng, “Asia's Steel Industry Will Take Decades to Go Green, Says Mining Giant BHP,” South China Morning Post, December 1, 2022, https://www.scmp.com/business/article/3201543/green-steel-still-decades-away-asia-hydrogen-struggles-replace-coal-fired-furnaces-says-mining-giant.99
  100. IRENA, “Innovation Outlook: Renewable Ammonia,” 2022, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/May/IRENA_Innovation_Outlook_Ammonia_2022.pdf; World Economic Forum, op. cit. note 11. 100
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  102. IRENA, op. cit. note 100; Iberdrola Corporativa, “Iberdrola Builds the Largest Green Hydrogen Plant for Industrial Use in Europe,” https://www.iberdrola.com/about-us/what-we-do/green-hydrogen/puertollano-green-hydrogen-plant, accessed December 23, 2022.102
  103. Bureau Veritas, “Yara Pre-Certification Announcement,” September 19, 2022, https://www.bureauveritas.com.au/newsroom/yara-pre-certification-announcement.103

Agriculture in Focus | Market Developments in Agriculture

Market Developments

Globally, the agriculture, fisheries and aquaculture sectors have adopted a wide range of energy efficiency and renewable energy technologies, including solar PV and solar thermal, geothermal, hydropower and bioenergy.

Solar PV applications offer some of the most developed off-grid solutions for productive uses of energy, from both a technical and a business perspective. 65 Solar water pumps for irrigation have huge potential for smallholder operations, and most farmers that have adopted them report an increase in productivity. 66 In 2021, solar pumping capacity totalled
654 MW, led by India (588 MW) and Bangladesh (48 MW) followed by Rwanda (3.3 MW) and Yemen (2.3 MW). 67 In Niger, a project launched in October 2021 is helping farmers install a total of 4.6 MW of solar water pumping capacity to improve irrigation systems. 68

Development partners and donors have supported renewable cooling technologies for the cold chain to keep produce fresh, helping to reduce post-harvest losses and expand the market reach of farmers. 69 In Sub-Saharan Africa and South Asia, farmers in India, Kenya, Nigeria and Rwanda have started using large-scale, solar-powered cold rooms, which help make cooling more affordable. 70 (See Snapshot: India) Expanding access to solar water pumps and cold storage technologies could improve the livelihoods of around 22 million smallholder farmers across India and sub-Saharan Africa. 71 The use of solar thermal for cooling, refrigeration and food drying in agriculture has remained limited. 72

Electricity generated from agrivoltaics has been used to directly power irrigation pumps and refrigeration as well as processing equipment for agricultural products. 73 The global installed agrivoltaic power capacity surged from around 5 MW peak in 2012 to more than 14 GW peak in 2021, supported in part by national funding programmes in Japan (since 2013), China (since 2014), France (since 2017), the United States (since 2018) and most recently the Republic of Korea. 74 Pilot projects are ongoing to determine the optimal use of the electricity generated. 75

In fisheries and aquaculture, solar PV systems are being used to charge vessel motors, power aquaculture equipment (such as feeders, pumps, aerators and security lighting) and run processing, ice-making, refrigeration and cold storage appliances, including during transport and retail. 76 German and Vietnamese partners have developed an aquaculture photovoltaics (aqua-PV) project to install PV panels above shrimp farming ponds in Vietnam, using the electricity generated on-site to power the aquaculture systems. 77 The aim is to assess the technical and economic feasibility of the concept after studies showed that aqua-PV nearly doubles land-use efficiency. 78 In Norway, two new commercial-scale floating solar PV projects are generating electricity to power fish farms off the coast. 79

Geothermal energy allows farmers to grow crops in difficult environments and to increase food availability and yields through greenhouse and soil heating, food drying, sterilisation, refrigeration, milk pasteurisation and irrigation. 80 By the end of 2022, around 31 countries – including Iceland and the Netherlands as well as emerging economies such as Algeria and Tunisia – were using geothermal greenhouse heating to grow vegetables and fruits as well as flowers, houseplants and tree seedlings. 81 In addition, some 21 countries use geothermal energy to heat water in aquaculture ponds and to support fish drying. 82 In 2019, around 2% of the geothermal energy used globally was for aquaculture. 83

Snapshot.INDIA

Solar-powered Cold Storage to Reduce Food Waste

Food waste has been a major issue in India due to the lack of cold storage and food processing facilities. As of 2022, an estimated 40% of the food produced in the country was wasted. Rural farmers often are forced to sell perishable items as quickly as possible before they become overripe. Extreme weather caused by climate change is putting farmers in an even more difficult situation.

Read more Collapse

Solar-powered Cold Storage to Reduce Food Waste

Food waste has been a major issue in India due to the lack of cold storage and food processing facilities. As of 2022, an estimated 40% of the food produced in the country was wasted. Rural farmers often are forced to sell perishable items as quickly as possible before they become overripe. Extreme weather caused by climate change is putting farmers in an even more difficult situation.

A solar cold storage project implemented by the Science, Technology & Innovation Council in India's Mizoram state has benefited farmers in the village of Kawnzar. The project uses solar PV and ice battery technology to convert water into ice within six hours. The cold storage allows farmers to stock up to 10 tonnes of food, enabling them to store their harvest for longer time periods instead of being forced to sell it cheaply or discard it. The USD 27,100 project, funded by India's Department of Science & Technology, has helped increase the incomes of small-scale farmers while also supporting the adoption of renewables in the agriculture sector. The project falls in line with the country's target to install 500 gigawatts (GW) of renewable energy capacity by 2030.

Similar cold storage systems have been installed throughout India by different companies, including Ecozen, Inficold and Oorja Development Solutions. This activity is expected to scale up further, and solar energy also is being used in food processing such as drying perishable goods, thereby improving the lives of local farmers.

Image
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Source: See endnote 70 for this module.

In agriculture and aquaculture, farmers use hydropower mainly at the micro scale as an alternative to diesel to power agro-processing activities. 84 In Sierra Leone, a 250 kilowatt hydro-based mini-grid provides electricity to run a palm oil pressing plant, and in Nepal micro-hydropower plants power local mills, replacing labour-intensive manual processing and allowing other income-generating activities. 85 Micro-hydropower systems also are used to provide clean electricity for aquaculture. 86

Bioenergy accounts for 5.4% of the total energy consumption in agriculture, where it is used to produce heat and electricity for farm use, processing and storage. 87 Between 2010 and 2020, the use of biogas in agriculture doubled, while the use of liquid biofuels grew 9.4 times. 88 In Vietnam, thousands of biogas digesters transform livestock manure into biogas to power income-generating food production activities. 89 In Africa, farmers have adopted biogas digesters in Burkina Faso, Ethiopia, Kenya, Rwanda, Senegal, Tanzania and Uganda, among other countries. 90

Improving the energy efficiency of food cold chains – including through the use of fridge insulation, efficient compressors and better controllers – has helped reduce energy use. 91 Additionally, some companies have developed and introduced models for “cooling-as-a-service”. 92 In Africa, a project launched in The Gambia in 2022 aims to provide vulnerable fishing communities with fuel-efficient biomass ovens for fish smoking, to help reduce air pollution and its health impacts among fishers. 93 In some fisheries, intermediate fuel oils i are being substituted for marine diesel oil to reduce fuel costs. 94

21 countries use geothermal energy to heat water in aquaculture ponds and to support fish drying.
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Footnotes

i These fuel oils are classified and named according to their viscosity and typically reduce fuel consumption costs. The most common oils used for inboard fishing vessel engines are IFO 180 and IFO 380. See endnote 94 for this module.

  1. World Bank, “Agriculture, Forestry, and Fishing, Value Added (% of GDP),” https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS, accessed December 16, 2022.1
  2. International Labour Organisation (ILO), “Employment Rate in Agriculture, World,” Data Finder – World Employment and Social Outlook, https://www.ilo.org/wesodata/?chart=Z2VuZGVyPVsiVG90YWwiXSZ1bml0PSJSYXRlIiZzZWN0b3I9WyJBZ3JpY3VsdHVyZSJdJnllYXJGcm9tPTIwMTAmaW5jb21lPVtdJmluZGljYXRvcj1bImVtcGxveW1lbnREaXN0cmlidXRpb24iXSZzdGF0dXM9W10mcmVnaW9uPVsiV29ybGQiXSZjb3VudHJ5PVtdJndvcmtpbmdQb3ZlcnR5PVtdJnllYXJUbz0yMDIzJnZpZXdGb3JtYXQ9IkNoYXJ0IiZhZ2U9WyJBZ2UxNXBsdXMiXSZsYW5ndWFnZT0iZW4i, accessed December 16, 2022.2
  3. ILO, “Employment Rate in Agriculture, by Region,” Data Finder – World Employment and Social Outlook, https://www.ilo.org/wesodata/chart/J45qDX-tp, accessed December 16, 2022.3
  4. Ibid.4
  5. International Energy Agency (IEA), “World Energy Balances 2020: Extended Energy Balances,” August 2022, https://www.iea.org/data-and-statistics/data-product/world-energy-balances, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).5
  6. Based on IEA data, op. cit. note 5.6
  7. European Commission, Directorate-General for Maritime Affairs and Fisheries, “Energy Efficiency,” https://stecf.jrc.ec.europa.eu/web/ee, accessed December 23, 2022.7
  8. European Commission, Directorate-General for Maritime Affairs and Fisheries, “2022 Annual Economic Report on the EU Fishing Fleet: The Sector Is Affected by High Fuel Prices in the Wake of the War in Ukraine,” October 11, 2022, https://oceans-and-fisheries.ec.europa.eu/news/2022-annual-economic-report-eu-fishing-fleet-sector-affected-high-fuel-prices-wake-war-ukraine-2022-10-11_en.8
  9. Food and Agriculture Organization of the United Nations (FAO), “FAOSTAT,” https://www.fao.org/faostat/en/#data/GN, accessed January 10, 2023.9
  10. Ibid. The dimensionless conversion factors used are: GWP-CH4 = 21 and GWP-N2O = 310 (100-year time horizon global warming potential), from Intergovernmental Panel on Climate Change, “SAR Climate Change 1995: The Science of Climate Change,” 1995, Table 4, https://www.ipcc.ch/report/ar2/wg1.10
  11. Ibid.11
  12. Figure 14 from IEA data, op. cit. note 5.12
  13. Ibid.13
  14. Ibid.14
  15. Ibid.15
  16. Ibid.16
  17. International Renewable Energy Agency (IRENA) and FAO, “Renewable Energy for Agri-Food Systems: Towards the Sustainable Development Goals and the Paris Agreement,” 2021, http://www.fao.org/3/cb7433en/cb7433en.pdf.17
  18. R. Van Anrooy et al., “Review of the Techno-Economic Performance of the Main Global Fishing Fleets,” FAO, 2021, https://www.fao.org/3/cb4900en/cb4900en.pdf. 18
  19. IRENA, “Renewable Energy for Agri-Food Systems: How Cross-Sector Partnerships Are Driving Action and Investments,” November 12, 2022, https://www.irena.org/News/articles/2022/Nov/Renewable-Energy-for-Agri-food-Systems.19
  20. IRENA and FAO, “Renewable Energy and Agri-Food Systems: Advancing Energy and Food Security Towards Sustainable Development Goals,” 2021, http://www.fao.org/3/cb7433en/cb7433en.pdf. 20
  21. Ibid..21
  22. Lighting Global, “Market Research on Productive Use Leveraging Solar Energy (PULSE),” September 23, 2019, https://www.lightingglobal.org/resource/pulse-market-opportunity.22
  23. IRENA, “Accelerating Geothermal Heat Adoption in the Agri-Food Sector,” January 2019, https://www.irena.org/publications/2019/Jan/Accelerating-geothermal-heat-adoption-in-the-agri-food-sector.23
  24. IRENA and FAO, op. cit. note 17.24
  25. European Environmental Bureau, “Beyond Net-Zero Emission in Agriculture: Creating an Enabling Climate Governance for Agriculture,” July 5, 2021, https://eeb.org/library/beyond-net-zero-emission-in-agriculture.25
  26. IRENA and FAO, op. cit. note 17. 26
  27. REN21 Policy Database. See Reference Table R4 in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.27
  28. Mint, “Renewable Energy to Replace Diesel in Agriculture by 2024, Says Govt,” February 12, 2022, https://www.livemint.com/news/india/renewable-energy-to-replace-diesel-in-agriculture-by-2024-says-govt-11644592411948.html.28
  29. REN21 Policy Database, op. cit. note 27. 29
  30. Figure 15 from Ibid.30
  31. Ibid.31
  32. Outlook, “Government Extends PM-KUSUM Scheme Till March 2026 as Covid Affects Implementation,” February 2, 2023, https://www.outlookindia.com/business/government-extends-pm-kusum-scheme-till-march-2026-as-covid-affects-implementation-news-258895; N. Pasupalati et al., “Learnings for Tamil Nadu from Grid-Connected Agricultural Solar Photovoltaic Schemes in India,” World Resources Institute, February 15, 2022, https://www.wri.org/research/learnings-tamil-nadu-grid-connected-agricultural-solar-photovoltaic-schemes-india.32
  33. A. Kumar and D. Mohapatra, “Fuelling India's Future with Bioenergy,” PwC, January 25, 2023, https://www.pwc.in/research-and-insights-hub/fuelling-indias-future-with-bioenergy.html.33
  34. L. Concessao and H. Meenawat, “Distributed Renewable Energy Applications Have a New and Encouraging Framework; Applying It on Ground Is Crucial for Success,” ET EnergyWorld, May 9, 2022, https://energy.economictimes.indiatimes.com/news/renewable/opinion-distributed-renewable-energy-applications-have-a-new-and-encouraging-framework-applying-it-on-ground-is-crucial-for-success/91434372; IRENA and FAO, op. cit. note 20.34
  35. Fraunhofer Institute for Solar Energy Systems (ISE), “Agrivoltaics: Opportunities for Agriculture and the Energy Transition,” April 2022, https://www.ise.fraunhofer.de/content/dam/ise/en/documents/publications/studies/APV-Guideline.pdf; H. Aposporis, “Greece Passes Renewables Law Targeting 15 GW in New Capacity by 2030,” Balkan Green Energy News, June 30, 2022, https://balkangreenenergynews.com/greece-passes-renewables-law-targeting-15-gw-in-new-capacity-by-2030.35
  36. A. Bhambhani, “Turkey Facilitates Solar for Irrigation Systems,” Taiyang News, August 3, 2022, https://taiyangnews.info/markets/turkey-facilitates-solar-for-irrigation-systems.36
  37. Rockefeller Foundation, “REA Launches New Program to Boost GDP, Accelerate Renewable Energy and Unlock Agricultural Productivity in Nigeria,” March 31, 2022, https://www.rockefellerfoundation.org/news/rea-launches-new-program-to-boost-gdp-accelerate-renewable-energy-and-unlock-agricultural-productivity-in-nigeria.37
  38. Fraunhofer ISE, “Agrivoltaics,” https://www.ise.fraunhofer.de/en/key-topics/integrated-photovoltaics/agrivoltaics.html, accessed January 3, 2023. .38
  39. J. Jacobo, “Italy to Allocate US$1.5 Billion for 375MW of Agrivoltaics,” PV Tech, August 29, 2022, https://www.pv-tech.org/italy-to-allocate-us1-5-billion-for-375mw-of-agrivoltaics.39
  40. Italian Ministry for Ecological Transition, “Guidelines for Agrivoltaics,” June 2022, https://www.mase.gov.it/sites/default/files/archivio/allegati/PNRR/linee_guida_impianti_agrivoltaici.pdf; E. Bellini, “France Defines Standards for Agrivoltaics,” pv magazine, April 28, 2022, https://www.pv-magazine.com/2022/04/28/france-defines-standards-for-agrivoltaics; E. Bellini, “Historical Court Ruling for Agrivoltaics in Italy,” pv magazine, June 27, 2022, https://www.pv-magazine.com/2022/06/27/historical-court-ruling-for-agrivoltaics-in-italy.40
  41. A. Fischer, “US Government Allocates $8 Million to Support Agrivoltaics,” pv magazine, December 15, 2022, https://www.pv-magazine.com/2022/12/15/us-government-allocates-8-million-to-support-agrivoltaics.41
  42. Fraunhofer ISE, op. cit. note 38; US National Renewable Energy Laboratory (NREL), “Agrivoltaics,” https://www.nrel.gov/solar/market-research-analysis/agrivoltaics.html, accessed January 3, 2023; NREL, “Benefits of Agrivoltaics Across the Food-Energy-Water Nexus,” September 11, 2019, https://www.nrel.gov/news/program/2019/benefits-of-agrivoltaics-across-the-food-energy-water-nexus.html. 42
  43. Fraunhofer ISE, op. cit. note 35.43
  44. J. Dahm and N. Kurmayer, “Germany to Boost Renewables in Agriculture, Link Moorlands with Solar Panels,” Euractiv, February 11, 2022, https://www.euractiv.com/section/agriculture-food/news/germany-to-boost-renewables-in-agriculture-link-moorlands-with-solar-panels.44
  45. Franhaufer ISE, op. cit. note 35. 45
  46. H. Horton, “Ministers Hope to Ban Solar Projects from Most English Farms,” The Guardian (UK), October 10, 2022, https://www.theguardian.com/environment/2022/oct/10/ministers-hope-to-ban-solar-projects-from-most-english-farms.46
  47. IRENA and FAO, op. cit. note 20.47
  48. Ibid.48
  49. Ibid.49
  50. Acumen, “Acumen Launches a $25 Million Investment Initiative to Power Livelihoods with Clean Energy,” July 12, 2022, https://acumen.org/blog/acumen-launches-a-25-million-investment-initiative-to-power-livelihoods-with-clean-energy.50
  51. F. Agbejule, M. Mattern and J. Mensah, “Savings at the Pump: Financing Solar Irrigation to Support Rural Women,” CGAP, March 22, 2022, https://www.cgap.org/blog/savings-pump-financing-solar-irrigation-to-support-rural-women.51
  52. Interreg Europe, “Romania: New Financing for Renewables in Agriculture,” April 15, 2021, https://projects2014-2020.interregeurope.eu/agrores/news/news-article/11786/romania-new-financing-for-renewables-in-agriculture.52
  53. M. Raji, personal communication with REN21, February 1, 2023.53
  54. US Department of Agriculture, Rural Development, “Rural Energy for America Program Renewable Energy Systems & Energy Efficiency Improvement Guaranteed Loans & Grants,” January 5, 2015, https://www.rd.usda.gov/programs-services/energy-programs/rural-energy-america-program-renewable-energy-systems-energy-efficiency-improvement-guaranteed-loans.54
  55. IRENA, op. cit. note 19. 55
  56. A. Rosell, “Zero CAPEX Solar Heat for Mexican Industry,” Solar Thermal World, March 18, 2022, https://solarthermalworld.org/news/zero-capex-solar-heat-for-mexican-industry.56
  57. A. Rosell, “Solar Heat for Multinational Agribusinesses Under Way,” Solar Thermal World, November 10, 2022, https://solarthermalworld.org/news/solar-heat-for-multinational-agribusinesses-under-way. 57
  58. B. Epp, “10 MW Solar Plant Heats Air for Malting Plant in France,” Solar Thermal World, September 28, 2021, https://solarthermalworld.org/news/10-mw-solar-plant-heats-air-malting-plant-france.58
  59. B. Epp, “Innovation Fund Approves EUR 4.5 Million for Croatian SHIP Plant,” Solar Thermal World, September 16, 2021, https://solarthermalworld.org/news/innovation-fund-approves-eur-45-million-croatian-ship-plant.59
  60. A. Rosell, “Heat Purchase Agreements on the Rise in Spain,” Solar Thermal World, August 10, 2022, https://solarthermalworld.org/news/heat-purchase-agreements-on-the-rise-in-spain.60
  61. S. Schindele et al., “Implementation of Agrophotovoltaics: Techno-Economic Analysis of the Price-Performance Ratio and Its Policy Implications,” Applied Energy, Vol. 265, 1 May 2020, p. 114737, https://www.sciencedirect.com/science/article/pii/S030626192030249X.61
  62. Blind Creek Solar Farm, “About Blind Creek Solar Farm,” https://www.blindcreeksolarfarm.com.au/about-blind-creek-solar-farm, accessed February 12, 2023; Clean Energy Finance Corporation, “NSW Regenerative Agriculture Boosted with Solar and Storage,” July 2022, https://www.cefc.com.au/where-we-invest/case-studies/nsw-regenerative-agriculture-boosted-with-solar-and-storage.62
  63. M. Van Nguyen et al., “Uses of Geothermal Energy in Food and Agriculture: Opportunities for Developing Countries,” FAO, January 1, 2014, https://www.fao.org/publications/card/fr/c/045ca001-4849-43b7-8dc6-e99635ddb5ea.63
  64. R. McRae, “$10m Investment in Geothermal Direct Use in Balikesir, Sindirgi, Turkey,” ThinkGeoEnergy, December 8, 2021, https://www.thinkgeoenergy.com/10m-investment-in-geothermal-direct-use-in-balikesir-sindirgi-turkey; C. Cariaga, “Grant Awarded for Geothermal Greenhouse Installation in Eskisehir, Turkiye,” ThinkGeoEnergy, October 14, 2022, https://www.thinkgeoenergy.com/grant-awarded-for-geothermal-greenhouse-installation-in-eskisehir-turkiye.64
  65. US Department of Energy, Office of Scientific and Technical Information, “2013 Market Trends Report,” January 1, 2014, https://www.osti.gov/servlets/purl/1220825. 65
  66. Energy Sector Management Assistance Program (ESMAP), “Off-Grid Solar Market Trends Report 2022: Outlook,” October 17, 2022, https://esmap.org/Off-Grid_Solar_Market_Trends_Report_2022_Outlook.66
  67. IRENA, “Off-Grid Renewable Energy Statistics 2022,” December 2022, https://www.irena.org/Publications/2022/Dec/Off-grid-renewable-energy-statistics-2022.67
  68. Green Climate Fund, “Hydro-Agricultural Development with Smart Agriculture Practices Resilient to Climate Change in Niger,” October 7, 2021, https://www.greenclimate.fund/project/fp176.68
  69. ESMAP, op. cit. note 66; IRENA and FAO, op. cit. note 20. 69
  70. Efficiency for Access, “Solar Appliance Technology Brief: Walk-in Cold Rooms,” July 2021, https://storage.googleapis.com/e4a-website-assets/EforA_Solar_Technology_Brief_WalkInColdRooms_July-2021.pdf; ESMAP, op. cit. note 66. Snapshot: India based on the following sources: B. Moushumi, “Indian Farmers Turn to Solar-Powered Fridges to Reduce Food Waste,” Scroll.in, December 5, 2022, https://scroll.in/article/1038916/indian-farmers-turn-to-solar-powered-fridges-to-reduce-food-waste; “Food Wastage in India: A Concern,” Eastern Mirror, October 25, 2022, https://easternmirrornagaland.com/food-wastage-in-india-a-concern; F. Birol and A. Kant, “India's Clean Energy Transition Is Rapidly Underway, Benefiting the Entire World,” IEA, January 10, 2022, https://www.iea.org/commentaries/india-s-clean-energy-transition-is-rapidly-underway-benefiting-the-entire-world; H. Lalramenga, “Deputy CM Hmalaknain Khawzawlah Solar Cold Storage Bun Dt. 21.12.2021,” DC Khawzawl, December 22, 2021, https://dckhawzawl.mizoram.gov.in/post/deputy-cm-hmalaknain-khawzawlah-solar-cold-storage-bun.70
  71. ESMAP, op. cit. note 66.71
  72. Based on IEA data, op. cit. note 5.72
  73. Fraunhofer ISE, op. cit. note 35.73
  74. Fraunhofer ISE, op. cit. note 38.74
  75. Fraunhofer ISE, op. cit. note 35.75
  76. FAO, “The State of World Fisheries and Aquaculture 2022. Towards Blue Transformation,” 2022, http://www.fao.org/3/cc0461en/cc0461en.pdf. 76
  77. CLIENT II, “SHRIMPS – Solar-Aquaculture Habitats as Resource-Efficient and Integrated Multilayer Production Systems,” https://www.bmbf-client.de/en/projects/shrimps, accessed January 4, 2023.77
  78. Ibid.78
  79. B. Santos, “Floating Solar Tech for Aquaculture,” pv magazine, January 4, 2023, https://www.pv-magazine.com/2023/01/04/floating-solar-tech-for-aquaculture.79
  80. IRENA, “Accelerating Geothermal Heat Adoption in the Agri-Food Sector,” January 2019, https://www.irena.org/publications/2019/Jan/Accelerating-geothermal-heat-adoption-in-the-agri-food-sector.80
  81. Ibid. 81
  82. Ibid; FAO, op. cit. note 76.82
  83. IRENA, op. cit. note 80.83
  84. IRENA and FAO, op. cit. note 20.84
  85. Ibid.85
  86. FAO, op. cit. note 76.86
  87. Based on IEA data, op. cit. note 5.87
  88. Ibid.88
  89. IRENA and FAO, op. cit. note 20.89
  90. Ibid.90
  91. Ibid.91
  92. Ibid.92
  93. Green Climate Fund, “Climate Resilient Fishery Initiative for Livelihood Improvement in the Gambia (PROREFISH Gambia),” July 20, 2022, https://www.greenclimate.fund/project/fp188.93
  94. R. Van Anrooy et al., op. cit. note 18.94
  95. C. Carletto, “Better Data, Higher Impact: Improving Agricultural Data Systems for Societal Change,” European Review of Agricultural Economics, Vol. 48, No. 4, September 2021, 719-740, https://doi.org/10.1093/erae/jbab030. 95
  96. D. Mohapatra et al., “Decentralised Renewable Energy Innovations to Boost Agri-Sector Productivity & Address Global Food System Challenges,” Alliance for Rural Electrification, January 2021, https://www.ruralelec.org/publications/decentralised-renewable-energy-innovations-boost-agri-sector-productivity-address.96

Transport in Focus | Market Developments in Transport

Market Developments

The transport sector moves an estimated 60 trillion passenger-kilometres of people and nearly 150 trillion tonne-kilometres of freight annually. 74 These volumes are expected to more than double by 2050. 75 Asia (in particular China) is the main driver of transport demand for both passengers and freight, followed by North America and Europe. 76 Transport demand in sub-Saharan Africa is expected to increase sharply, with passenger-kilometres rising from around 2 trillion in 2015 to 10 trillion in 2050, and freight tonne-kilometres rising from around 1 trillion in 2015 to more than 3 trillion in 2050. 77

Transport accounted for around 29% of global energy use in 2020, and in most countries it is either the first or second largest energy-consuming sector. 78 The Asia-Pacific region and North America together accounted for more than half of all transport energy use in 2022. 79 The United States consumed an estimated 23.3 EJ, followed by China (15.2 EJ) and India (4.4 EJ). 80 The Asia-Pacific region experienced the highest average annual growth in transport energy demand between 2011 and 2019, at 4.7%, driven largely by India and China (where growth exceeded 6%). 81 Africa and Latin America and the Caribbean had the lowest demand, although Africa witnessed the second highest growth, at 3.7%. 82

The Asia-Pacific region also has the fastest growing use of renewables in transport, with demand increasing 13.9% annually on average between 2010 and 2019. 83 (See Figure 13) In 2019, the leading countries in Asia were Indonesia (around 0.17 EJ of renewables) and China (around 0.12 EJ). 84 The United States, the largest consumer of renewables for transport, represented around 40% of global demand, or 1.6 EJ. 85 The second largest consumer was Brazil, with 0.9 EJ, while in Europe, three countries – France, Germany and Spain – together accounted for 44% of the regional consumption. 86

Road transport contributes nearly a fifth of global CO2 emissions, with automobiles, vans and two- and three-wheelers together accounting for 68% of that share. 87 By using existing data on the production, sale and use of these light-duty vehicles, it is possible to approximate the evolution of energy use in transport and the overall targets to be pursued.

Globally, nearly 60 million new cars were sold in 2022. 88 The Asia-Pacific region led the market with a 61% share, followed by Europe at 25%. 89 By country, China sold the largest share of new cars worldwide (38%, or more than 21 million) in 2021 (latest data available), followed by Japan, the United States, India and Germany, at between 4% and 6% each. 90

The highest rates of vehicle ownership are in the United States, New Zealand, Canada, Australia, Japan and European countries, at between 600 and 900 vehicles per 1,000 inhabitants, suggesting that as countries develop, vehicle ownership worldwide will onlycontinue to rise. 91 This points to the need to target more policy and investment at delivering accessible, good-quality public transport infrastructure and services to help decouple economic growth and vehicle ownership and reduce emissions.

FIGURE 13

Renewables in Transport, by Region, 2010-2019

 FIGURE 13

Source: See endnote 83 for this module.

Biofuels account for around 90% of the renewable energy use in transport, with average annual growth of 5% between 2010 and 2020. 92 Biofuel consumption fell 4% in 2020 but is expected to grow significantly in the coming decade (potentially four-fold, by some estimates). 93 Much of this rise will likely be driven by blending mandates and regulations that increase the share of biofuels in blends.

Transport fuels produced from advanced biomass feedstocks provide a short-term option towards decarbonising aviation and maritime transport as well as heavy-duty trucks and public buses. 94 (See Snapshot: Spain)The EU's ReFuelEU Aviation initiative proposes raising the required share of SAF used in flights departing from the EU to 2% in 2025 and 63% in 2050, which could accelerate changes globally. 95 More ambitious targets could be set in the future, following successful test flights in 2022 of commercial aircraft running entirely on SAF, resulting in life-cycle emission reductions of 80%. 96

Renewable electricity accounts for 10% of the renewable energy used in transport, with average annual growth of 7% between 2010 and 2020. 97 Overall electricity demand in the sector grew at an average rate of 3.6% per year. 98 In 2020, despite the slowdown in electricity use in transport (down 3% compared to 2019), the demand for renewable electricity in the sector grew 5.4%. 99

Electric cars accounted for 14% of all new automobiles sold in 2022, reflecting the steep sales growth in recent years. 100 China alone registered around half of the estimated 10 million electric vehicles sold globally in 2022. 101 In just a five-year period, electric car sales grew 10-fold in China and 18-fold in the Republic of Korea. 102 In Europe, around 17% of all automobile sales were electric in 2022, with this share reaching 86% in Norway. 103 In Germany, the electric car fleet grew nearly 30-fold between 2016 and 2021, at an average annual rate of 109%. 104

Although electric vehicle sales have focused mainly on light-duty passenger vehicles, annual sales of electric buses are projected to triple by 2025, and electric trucks to grow 13-fold, to reach a combined 468,000 units. 105 By the end of 2022, the number of electric two- and three-wheelers exceeded an estimated
250 million worldwide, dominated by the Asian market; China alone has around 195 million electric two-wheelers, while in India nearly 40% of three-wheelers are electric. 106 These increases are driven mostly by battery electric vehicles, whereas plug-in hybrids have shown only modest growth. 107

Concerns about costs, range, prolonged charging times and a lack of dense charging networks have all hampered greater adoption of electric vehicles. 108 This is especially true for electric trucks, which are crucial to cutting transport emissions because trucks are the least-efficient transport mode in energy use per tonne-kilometre. 109 In the medium term, promising advancements include greater government investment in charging networks, as well as technology innovations that point to much faster charging times. 110 Prototype vehicle-integrated solar PV modules are being tested to improve electric vehicle ranges by 800 kilometres per year and electric trucks ranges by 10,000 kilometres per year. 111

In another industry development, the European ISO 15118-20 standard for vehicle-to-grid technology was published in 2022, supporting communication between electric vehicle batteries and the power grid. Such communication will enable efficiency gains in charging operations as well as the use of electric vehicles as distributed energy sources that supply power to the electricity grid, contributing to grid stability. 112

In 2021, the stock of hydrogen-powered fuel cell electric vehicles was still very small, at 51,600 units, with 82% of these being automobiles and the rest being trucks and buses. 113 Although fuel cell electric vehicles are less efficient than battery electric vehicles, they are a plausible option for cutting emissions from heavy road transport in the medium term. 114 Advancements in fuel cell technology have enabled ranges of up to 1,500 kilometres and faster tank fill-up, and efforts are progressing to green the production of hydrogen and make it more efficient. 115 China has led the way, with buses and trucks comprising most of its hydrogen fleet, and a network of 146 charging stations in 2021. 116

Asia-Pacific has the fastest growing use of renewables in transport, with a 13.9% annual increase between 2010 and 2019.

Globally, however, less than 1% of the hydrogen that is currently supplied across sectors is low-emission – produced mainly from bioenergy and from fossil fuels using carbon capture, utilisation and storage technology. 117 To meet future demand, the hydrogen obtained from these two sources, and especially zero-emission hydrogen, must increase significantly, alongside efforts to produce renewable hydrogen through electrolysis. This will require adding up to an estimated 700 gigawatts of electrolyser capacity by 2030. 118 If achievable, the shift to renewable hydrogen could play an important role in reducing emissions in maritime transport and aviation in the coming decade. 119

Snapshot.SPAIN

Transitioning from Polluting Compressed Fossil Gas to Biogas

In 2022, Madrid City Council in Spain announced a project to power city buses with biomethane generated by the Valdemingómez Technology Park, one of the largest waste treatment plants in Europe. Since the 2000s, Madrid Municipal Transport Company (EMT) has used compressed fossil gas (CNG) buses to replace its diesel units. Although CNG improves urban air quality by reducing nitrogen oxide pollutants, it does not reduce CO2 emissions. The use of biomethane, a biofuel obtained from organic waste transformed through anaerobic digestion processes, contributes to reduced emissions while performing similarly to fossil gas.

Read more Collapse

Transitioning from Polluting Compressed Fossil Gas to Biogas

In 2022, Madrid City Council in Spain announced a project to power city buses with biomethane generated by the Valdemingómez Technology Park, one of the largest waste treatment plants in Europe. Since the 2000s, Madrid Municipal Transport Company (EMT) has used compressed fossil gas (CNG) buses to replace its diesel units. Although CNG improves urban air quality by reducing nitrogen oxide pollutants, it does not reduce CO2 emissions. The use of biomethane, a biofuel obtained from organic waste transformed through anaerobic digestion processes, contributes to reduced emissions while performing similarly to fossil gas.

During 2023, the Valdemingómez Technology Park will supply at least 6 gigawatt-hours (GWh) of biomethane to a fleet of 20 CNG buses for the C1 circular line, one of the network's busiest. In 2021, the C1 line covered more than 1 million kilometres and transported around 4.4 million passengers. The Park was recently renovated to increase its biomethane production capacity to 180 GWh per year, equivalent to the fossil gas consumption of 20,000 Spanish homes or 500 EMT buses. The plant's waste treatment services represent an estimated reduction of more than 43,500 tonnes of CO2-equivalent emissions annually.

The initiative is made possible through an agreement between EMT and the Valdemingómez Technology Park, with the participation of private groups such as PreZero (the company in charge of the biogas treatment plant at the Park) and the trading company Axpo. The project has secured EUR 285,000 (USD 305,000) in grant financing from the Madrid Business Forum, a public-private platform for business development. The initiative is part of the Madrid City Council's Circular Mobility Project and EMT's Strategic Plan, and is also aligned with the Madrid 360 Environmental Sustainability Strategy, which aims to reduce the city's emissions through programmes such as sustainable mobility.

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Source: See endnote 94 for this module.

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  1. Global GDP from transport calculated by applying transport share of GDP to global GDP, from World Bank, “GDP (current US$),” https://data.worldbank.org/indicator/NY.GDP.MKTP.CD, accessed January 12, 2023. Transport share of GDP estimated using a sample of 94 countries, based on the following sources: Trading Economics, “GDP from Transport,” https://tradingeconomics.com/country-list/gdp-from-transport, and “GDP,” https://tradingeconomics.com/country-list/gdp, both accessed January 12, 2023; Government of Canada, “Transportation Enabling Economy Growth,” https://tc.canada.ca/en/corporate-services/transparency/corporate-management-reporting/transportation-canada-annual-reports/transportation-enabling-economy-growth, accessed January 12, 2023; Gambia Data Portal, “Gross Domestic Product of Gambia,” https://gambia.opendataforafrica.org/lmljwvg/gross-domestic-product-of-gambia?indicator=1000140-transport-storage-communication, accessed January 12, 2023. As the value for Spain included hostelry, to estimate it more accurately the figure corresponding to tourism activity during 2021 was discounted, based on INE, “Tourism Satellite Account of Spain. Year 2021,” https://www.ine.es/dyngs/INEbase/en/operacion.htm?c=Estadistica_C&cid=1254736169169&menu=ultiDatos&idp=1254735576863, accessed January 12, 2023. For Jamaica and Namibia, it was assumed that the values on Trading Economics were provided in local currency rather than US dollars. Global transport workforce calculated by applying transport share of workforce to global workforce, from World Bank, “Labor Force, Total,” https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?end=2021&start=1990&view=chart, accessed January 12, 2023. Transport share of workforce estimated based on a sample of 53 countries, from International Labour Organization, “Indicator Catalogue,” https://ilostat.ilo.org/data, accessed January 12, 2023. 1
  2. International Energy Agency (IEA), “World Energy Outlook 2022,” October 2022, https://iea.blob.core.windows.net/assets/830fe099-5530-48f2-a7c1-11f35d510983/WorldEnergyOutlook2022.pdf; growth estimates based on datasets in IEA, “World Energy Balances Highlights,” October 2022, https://www.iea.org/data-and-statistics/data-product/world-energy-balances-highlights#data-sets, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21).2
  3. IEA, “World Energy Balances,” op. cit. note 2. 3
  4. Ibid.4
  5. Ibid.5
  6. Ibid.6
  7. Ibid. 7
  8. Estimates based on IEA, “Energy Consumption in Transport by Fuel in the Net Zero Scenario, 2000-2030,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/energy-consumption-in-transport-by-fuel-in-the-net-zero-scenario-2000-2030, and on REN21 Policy Database. See Reference Table R3a in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.8
  9. Estimates based on IEA, op. cit. note 8, and on REN21 Policy Database, op. cit. note 8. 9
  10. REN21 estimates the drop in biofuel demand at 4.4%, based on datasets in IEA, “World Energy Balances,” op. cit. note 2.10
  11. IEA, op. cit. note 8.11
  12. H. Ritchie and M. Roser, “Emissions by Sector,” Our World in Data, https://ourworldindata.org/emissions-by-sector, accessed January 3, 2023.12
  13. IEA, “Transport,” September 2022, https://www.iea.org/reports/transport.13
  14. Ibid.14
  15. IEA, “Global CO2 Emissions from Transport by Sub-sector in the Net Zero Scenario, 2000-2030,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/global-co2-emissions-from-transport-by-sub-sector-in-the-net-zero-scenario-2000-2030. Total value of CO2 emissions for 2021 from European Commission Joint Research Centre, “Global CO2 Emissions Rebound in 2021 After Temporary Reduction During COVID Lockdown,” October 14, 2022, https://joint-research-centre.ec.europa.eu/jrc-news/global-co2-emissions-rebound-2021-after-temporary-reduction-during-covid19-lockdown-2022-10-14_en.15
  16. IEA, op. cit. note 15.16
  17. Ibid.17
  18. IEA, “Energy Efficiency Indicators Data Explorer,” December 2, 2022, https://www.iea.org/data-and-statistics/data-tools/energy-efficiency-indicators-data-explorer.18
  19. Ibid.19
  20. Transformative Urban Mobility Initiative (TUMI), “Sustainable Urban Transport: Avoid Shift Improve (ASI),” March 2019, https://www.transformative-mobility.org/assets/publications/ASI_TUMI_SUTP_iNUA_No-9_April-2019.pdf. 20
  21. Ibid.21
  22. Ibid. 22
  23. IEA, “Global EV Outlook 2022,” May 2022, https://www.iea.org/reports/global-ev-outlook-2022.23
  24. M. Vitorino, “Portugal Sets New Goals for Renewable Energy Consumption,” Lexology, December 12, 2022, https://www.lexology.com/library/detail.aspx?g=fe7c9067-8562-475a-bcb9-399b9a6fe73c; Dutch Emissions Authority, “Renewable Energy for Transport 2022-2030,” https://www.emissionsauthority.nl/topics/general---renewable-energy-for-transport, accessed February 7, 2023.24
  25. European Renewable Ethanol, “Overview of Biofuels Policies and Markets Across the EU,” October 2022, https://www.epure.org/wp-content/uploads/2022/10/221011-DEF-REP-Overview-of-biofuels-policies-and-markets-across-the-EU-October-2022.pdf.25
  26. TUMI, “Curitiba,” April 6, 2022, https://www.transformative-mobility.org/campaigns/curitiba.26
  27. King County, “Transitioning to a Zero-Emissions Fleet,” https://kingcounty.gov/depts/transportation/metro/programs-projects/innovation-technology/zero-emission-fleet.aspx, accessed February 14, 2023.27
  28. C. Isidore, “Why US Gas Prices Are at a Record, and Why They'll Stay High for a Long Time,” CNN Business, June 6, 2022, https://www.cnn.com/2022/06/06/energy/record-gas-prices-causes/index.html; IEA, “World Energy Outlook 2022,” op. cit. note 2.28
  29. Figure 10 from REN21 Policy Database, op. cit. note 8. 29
  30. “Cabinet Amends Biofuels Policy, Advances Ethanol Blending Target to 2025-26,” Economic Times, May 18, 2022, https://economictimes.indiatimes.com/industry/renewables/cabinet-amends-biofuels-policy-advances-ethanol-blending-target-to-2025-26/articleshow/91637676.cms.30
  31. A. Parmar, “Viewpoint: Asian Biofuels Breaking Away from Europe,” Argus Media, December 15, 2022, https://www.argusmedia.com/en/news/2400935-viewpoint-asian-biofuels-breaking-away-from-europe; S. Kelly and J. Renshaw, “U.S. EPA Proposes Revamp of Biofuel Program to Include Electric Vehicles,” Reuters, December 1, 2022, https://www.reuters.com/business/energy/us-epa-proposes-higher-biofuel-blending-volumes-ev-program-2022-12-01.31
  32. REN21 Policy Database, op. cit. note 8. 32
  33. “Brazil to Keep 10% Biodiesel Mandate Until March – CNPE,” Reuters, November 22, 2022, https://www.reuters.com/business/energy/brazil-keep-10-biodiesel-mandate-until-march-cnpe-2022-11-21.33
  34. Figure 11 from REN21 Policy Database. See Reference Table R3b in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.34
  35. J. Amir, “Thai Government Announces EV Roadmap,” S&P Global, March 16, 2020, https://www.spglobal.com/mobility/en/research-analysis/thai-government-announces-ev-roadmap.html; 35
  36. Baker Mckenzie, “Philippines: The Electric Vehicle Industry Development Act (EVIDA), Republic Act No. 11697, Lapses into Law,” May 10, 2022, https://insightplus.bakermckenzie.com/bm/tax/philippines-the-electric-vehicle-industry-development-act-evida-republic-act-no-11697-lapses-into-law.36
  37. Kelly and Renshaw, op. cit. note 31.37
  38. REN21 Policy Database, op. cit. note 34.38
  39. “Germany Includes Plug-in Hybrids to Achieve Target of 15 Million EVs by 2030,” Power Technology, February 25, 2022, https://www.power-technology.com/comment/germany-target-15-million-evs. 39
  40. The White House, “FACT SHEET: Biden-Harris Administration Proposes New Standards for National Electric Vehicle Charging Network,” June 9, 2022, https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/09/fact-sheet-biden-harris-administration-proposes-new-standards-for-national-electric-vehicle-charging-network. 40
  41. G.Jacquot, “L'obligation de pose de panneaux photovoltaïques sur les grands parkings extérieurs adoptée au Sénat,” Public Senat, November 4, 2022, https://www.publicsenat.fr/article/parlementaire/l-obligation-de-pose-de-panneaux-photovoltaiques-sur-les-grands-parkingshttps://www.publicsenat.fr/article/parlementaire/l-obligation-de-pose-de-panneaux-photovoltaiques-sur-les-grands-parkings.41
  42. Ministry of New & Renewable Energy of India, “India National Hydrogen Mission,” March 2022, https://static.pib.gov.in/WriteReadData/specificdocs/documents/2023/jan/doc2023110150801.pdf. 42
  43. REN21 Policy Database. See Reference Table R3b in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.43
  44. Ibid.44
  45. “EU Parliament Votes to Ban Sale of Petrol Car by 2035,” Le Monde, February 14, 2023, https://www.lemonde.fr/en/european-union/article/2023/02/14/eu-parliament-votes-to-ban-petrol-car-sales-by-2035_6015745_156.html.45
  46. Transport Environment, “Kerosene Taxation: How to Implement It in Europe Today,” June 2020, https://www.transportenvironment.org/wp-content/uploads/2021/07/2020_06_Kerosene_taxation_briefing.pdf.46
  47. International Air Transport Association, “Fact Sheet: EU and US Policy Approaches to Advance SAF Production,” 2021, https://www.iata.org/contentassets/d13875e9ed784f75bac90f000760e998/fact-sheet---us-and-eu-saf-policies.pdf.47
  48. European Council, “ETS Aviation: Council and Parliament Strike Provisional Deal to Reduce Flight Emissions,” December 7, 2022, https://www.consilium.europa.eu/en/press/press-releases/2022/12/07/ets-aviation-council-and-parliament-strike-provisional-deal-to-reduce-flight-emissions.48
  49. D. Shepardson, “U.S. Outlines Roadmap to Boost Sustainable Aviation Fuel,” Reuters, September 23, 2022, https://www.reuters.com/business/energy/us-outlines-roadmap-boost-sustainable-aviation-fuel-use-2022-09-23.49
  50. US Department of Energy, “SAF Grand Challenge Roadmap – Flight Plan for Sustainable Aviation Fuel,” September 2022, https://www.energy.gov/sites/default/files/2022-09/beto-saf-gc-roadmap-report-sept-2022.pdf.50
  51. D. Larsen, “Denmark Aims for Fossil-Fuel Free Inland Flights by 2030,” Electrive, January 4, 2022, https://www.electrive.com/2022/01/04/denmark-aims-for-fossil-fuel-free-inland-flights-by-2030.51
  52. L. Limb, “It's Official: France Bans Short Haul Domestic Flights in Favour of Train Travel,” euronews, December 5, 2022, https://www.euronews.com/green/2022/12/02/is-france-banning-private-jets-everything-we-know-from-a-week-of-green-transport-proposals.52
  53. SNCF, “Un contrat record pour faire rouler vos trains grâce au photovoltaïque,” https://www.sncf.com/fr/groupe/fournisseurs/contrat-ppa-photovoltaique-sncf-energie-reden, accessed December 18, 2022.53
  54. Ibid.54
  55. P. Gururaja, “A Big First Step Toward Green Shipping Corridors,” ClimateWorks Foundation, February 2, 2022, https://www.climateworks.org/blog/green-shipping-corridors; Mission Innovation, “Green Shipping Corridor Route Tracker,” 2023, http://mission-innovation.net/missions/shipping/green-shipping-corridors/route-tracker; C40 Cities, “Maritime and Port Authority of Singapore, Port of Los Angeles, Port of Long Beach and C40 Cities to Establish a Green and Digital Shipping Corridor,” November 7, 2022, https://www.c40.org/news/maritime-and-port-authority-of-singapore-port-of-los-angeles-port-of-long-beach-and-c40-cities-to-establish-a-green-and-digital-shipping-corridor. Snapshot: US-China based on C40 Cities, “Port of Los Angeles, Port of Shanghai, and C40 Cities Announce Partnership to Create World's First Transpacific Green Shipping Corridor Between Ports in the United States and China,” January 28, 2022, https://www.c40.org/news/la-shanghai-green-shipping-corridor. 55
  56. UN Climate Change Conference UK 2021, “Clydebank Declaration for Green Shipping Corridors,” November 10, 2021, https://ukcop26.org/cop-26-clydebank-declaration-for-green-shipping-corridors.56
  57. BloombergNEF, “Energy Transition Investment Trends 2023,” January 2023, https://about.bnef.com/energy-transition-investment.57
  58. IEA, “Biofuels – Renewables 2021 – Analysis,” 2021, https://www.iea.org/reports/renewables-2021/biofuels?mode=transport&region=World&publication=2021&flow=Consumption&product=Ethanol. See also Reference Table R3a in the GSR 2023 Data Pack, www.ren21.net/gsr2023-data-pack.58
  59. M. Teixeira, “High Energy Prices Fuel Investor Interest in Brazil's Idle Biofuel Capacity,” Reuters, June 8, 2022, https://www.reuters.com/markets/commodities/high-energy-prices-fuel-investor-interest-brazils-idle-biofuel-capacity-2022-06-08.59
  60. S&P Global Commodity Insights, “Top Biofuels Market Trends in 2022 and Beyond,” 2022, https://www.spglobal.com/commodityinsights/en/ci/info/0322/top-biofuels-market-trends-2022-beyond.html; glpautogas.info, “HVO 100 Stations in USA, Map and Updated Listing,” https://www.glpautogas.info/en/hvo100-stations-united-states.html, accessed January 31, 2023.60
  61. Phillips 66, “Phillips 66 Makes Final Investment Decision to Convert San Francisco Refinery to a Renewable Fuels Facility,” May 11, 2022, https://investor.phillips66.com/financial-information/news-releases/news-release-details/2022/Phillips-66-Makes-Final-Investment-Decision-to-Convert-San-Francisco-Refinery-to-a-Renewable-Fuels-Facility.61
  62. S&P Global Commodity Insights, op. cit. note 60; glpautogas.info, op. cit. note 60.62
  63. BloombergNEF, op. cit. note 57; M. Prestes, “Palm Oil for Biodiesel in the Amazon: Sustainable Fuel or Deforestation Risk?” Global Issues, May 4, 2022, https://www.globalissues.org/news/2022/04/04/30517. 63
  64. Figure 12 from BloombergNEF, op. cit. note 57.64
  65. BloombergNEF, “Electric Vehicle Outlook 2022,” 2022, https://about.bnef.com/electric-vehicle-outlook.65
  66. BloombergNEF, “Lithium-Ion Battery Pack Prices Rise for First Time to an Average of $151/kWh,” December 6, 2022, https://about.bnef.com/blog/lithium-ion-battery-pack-prices-rise-for-first-time-to-an-average-of-151-kwh.66
  67. Neste, “Green Finance Report 2021,” 2022, https://www.neste.com/investors.67
  68. P. Tisheva, “Saudi Arabia's Alfanar to Invest GBP 1bn in UK SAF Project,” Renewables Now, March 17, 2022, https://renewablesnow.com/news/saudi-arabias-alfanar-to-invest-gbp-1bn-in-uk-saf-project-777358.68
  69. S&P Global Commodity Insights, op. cit. note 60.69
  70. I. Thomas, “United Airlines Is Aiming to Have Electric Planes Flying by 2030,” CNBC, October 10, 2022, https://www.cnbc.com/2022/10/06/united-airlines-is-aiming-to-have-electric-planes-flying-by-2030.html.70
  71. “Air Canada to Buy 30 Electric Planes from Heart Aerospace,” Reuters, September 15, 2022, https://www.reuters.com/business/aerospace-defense/air-canada-buy-30-electric-planes-heart-aerospace-2022-09-15; W. Bellamy III, “Air Canada Signs Purchase Agreement for Heart's Updated ES-30 Electric Aircraft,” Aviation Today, September 20, 2022, https://www.aviationtoday.com/2022/09/20/air-canada-signs-purchase-agreement-hearts-updated-es-30-electric-aircraft.71
  72. D. Burroughs, “ÖBB to Invest €١bn in Renewable Energy by ٢٠٣٠,” International Railway Journal, May 13, 2022, https://www.railjournal.com/financial/obb-to-invest-e1bn-in-renewable-energy-by-2030.72
  73. International Renewable Energy Agency, “Technology Brief: Renewable Energy Options for Shipping,” January 2015, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2015/IRENA_Tech_Brief_RE_for-Shipping_2015.pdf.73
  74. International Transport Forum, “ITF Transport Outlook 2021,” May 17, https://www.oecd-ilibrary.org/transport/itf-transport-outlook-2021_16826a30-en. 74
  75. Ibid.75
  76. Ibid.76
  77. Based on recover scenario in Ibid.77
  78. Estimates based on datasets in IEA, “World Energy Balances,” op. cit. note 2.78
  79. Ibid.79
  80. Ibid.80
  81. Ibid. Growth rates calculated using averages pre-COVID-19. 81
  82. Ibid.82
  83. Figure 13 from Ibid. Growth rates calculated using averages pre-COVID-19.83
  84. Ibid.84
  85. Ibid.85
  86. Ibid.86
  87. Road transport's share of emissions based on IEA, “Energy Statistics Data Browser,” https://www.iea.org/data-and-statistics/data-tools/energy-statistics-data-browser?country=WORLD&fuel=Energy%20supply&indicator=TESbySource, August 18, 2022; global emissions from M. Crippa et al., “CO2 emissions of all world countries – 2022 Report,” European Commission Joint Research Centre, 2022, https://publications.jrc.ec.europa.eu/repository/handle/JRC130363; shares of light vehicles based on 2019 values from IEA, op. cit. note 13, and on International Council for Clean Transportation, “Light Vehicles,” https://theicct.org/sector/light-vehicles, accessed December 15, 2022.87
  88. Estimates based on International Organization of Motor Vehicle Manufacturers (OICA), “Global Sales Statistics 2019-2021,” https://www.oica.net/category/sales-statistics, accessed December 16, 2022, and on IEA, “As the Covid-19 Crisis Hammers the Auto Industry, Electric Cars Remain a Bright Spot,” May 18, 2020, https://www.iea.org/commentaries/as-the-covid-19-crisis-hammers-the-auto-industry-electric-cars-remain-a-bright-spot. Europe includes the Russian Federation and Türkiye.88
  89. IEA, op. cit. note 88. 89
  90. Ibid. 90
  91. European Automobile Manufacturers' Association (ACEA), “Vehicles in Use Europe 2022,” January 2022, https://www.acea.auto/files/ACEA-report-vehicles-in-use-europe-2022.pdf; Wikipedia, “List of Countries by Vehicles per Capita,” https://en.wikipedia.org/wiki/List_of_countries_by_vehicles_per_capita, accessed January 10, 2022.91
  92. REN21 Policy Database, op. cit. note 8. 92
  93. Estimates based on Ibid. and on IEA, op. cit. note 8; IEA, “Biofuels,” September 2022, https://www.iea.org/reports/biofuels. 93
  94. Snapshot: Spain based on the following sources: Energías Renovables, “Bioenergía – Una veintena de autobuses urbanos de Madrid abandonan el gas natural y lo sustituyen por biometano de vertedero,” September 8, 2022, https://www.energias-renovables.com/bioenergia/los-autobuses-urbanos-de-madrid-abandonan-el-20220908; Foro de Empresas por Madrid, “Los autobuses madrileños se moverán con biometano,” August 9, 2022, https://www.forodeempresaspormadrid.es/actualidad/foro/los-autobuses-madrilenos-se-moveran-con-biometano; NGV Journal, “Madrid Expands PTV Biogas Plant, Will Be Able to Supply 500 EMT Buses,” April 21, 2022, http://www.ngvjournal.com/s1-news/c4-stations/madrid-expands-valdemingomez-biogas-plant-will-be-able-to-supply-500-buses; Ayuntamiento de Madrid, “Madrid utilizará el biometano de Valdemingómez para mover los autobuses de EMT,” July 9, 2022, https://www.madrid.es/portales/munimadrid/es/Inicio/Actualidad/Noticias/Madrid-utilizara-el-biometano-de-Valdemingomez-para-mover-los-autobuses-de-EMT.94
  95. European Commission, “Mobility and Transport, Biofuels,” https://transport.ec.europa.eu/transport-modes/air/environment/biofuels_en, accessed January 9, 2023; G. Squadrin, B. O'Kelly and S. Barthel, “Viewpoint: HVO, SAF Demand to Outstrip Supply in 2022,” Argus Media, December 22, 2021, https://www.argusmedia.com/en/news/2285785-viewpoint-hvo-saf-demand-to-outstrip-supply-in-2022.95
  96. Airbus, “Airbus A330MRTT Completes First 100% SAF Test Flight on Both Engines,” November 18, 2022, https://www.airbus.com/en/newsroom/press-releases/2022-11-airbus-a330mrtt-completes-first-100-saf-test-flight-on-both-engines; Neste, “First Flight in History with 100% Sustainable Aviation Fuel on a Regional Commercial Aircraft,” June 21, 2022, https://www.neste.com/releases-and-news/renewable-solutions/first-flight-history-100-sustainable-aviation-fuel-regional-commercial-aircraft.96
  97. IEA, “World Energy Balances,” op. cit. note 2. 97
  98. Ibid.98
  99. Ibid.99
  100. OICA, op. cit. note 88; IEA, “Electric Vehicles,” September 2022, https://www.iea.org/reports/electric-vehicles; IEA, “Global EV Data Explorer,” May 23, 2022, https://www.iea.org/data-and-statistics/data-tools/global-ev-data-explorer.100
  101. Here “vehicles” refers to automobiles, trucks, vans and buses. Estimated based on IEA, “Global EV Data Explorer,” op. cit. note 100.101
  102. IEA, “Electric Vehicles,” op. cit. note 100.102
  103. Ibid.103
  104. Ibid. 104
  105. IEA, “Global EV Data Explorer,” op. cit. note 100.105
  106. BloombergNEF, “Electric Vehicle Outlook 2022, Executive Summary, Near Term Outlook,” 2022, https://bnef.turtl.co/story/evo-2022/page/3/2. 106
  107. IEA, “Global EV Data Explorer,” op. cit. note 100.107
  108. IEA, op. cit. note 18.108
  109. Ibid. 109
  110. J. Biba, “Will Charging an Electric Car Ever Be Quick and Easy?” Builtin, November 1, 2022, https://builtin.com/transportation-tech/electric-vehicle-charging.110
  111. INES, “ITE INES.2S Mettre du solaire dans votre véhicule (électrique),” September 15, 2022, https://www.ines-solaire.org/news/ite-ines.2s-mettre-du-solaire-dans-votre-vehicule-electrique; E. Bellini “Vehicle-integrated PV for Heavy-duty Trucks,” pv magazine, October 21, 2021, https://www.pv-magazine.com/2021/10/25/vehicle-integrated-pv-for-heavy-duty-trucks.111
  112. International Organization for Standardization, “ISO 15118-20:2022(en) Road vehicles — Vehicle to grid communication interface — Part 20: 2nd generation network layer and application layer requirements,” 2022, https://www.iso.org/obp/ui/#iso:std:iso:15118:-20:ed-1:v1:en; Virta, “Vehicle-to-Grid (V2G): Everything You Need to Know,” https://www.virta.global/vehicle-to-grid-v2g, accessed January 4, 2022.112
  113. IEA, “Fuel Cell Electric Vehicle Stock by Region and by Mode, 2021,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/fuel-cell-electric-vehicle-stock-by-region-and-by-mode-2021. 113
  114. US Department of Energy, “Hydrogen's Role in Transportation,” February 25, 2022, https://www.energy.gov/eere/vehicles/articles/hydrogens-role-transportation.114
  115. IEA, “Hydrogen,” September 2022, https://www.iea.org/reports/hydrogen; Hydrogen Central, “Quantron Hydrogen-Powered Truck Has a Range of 1500 Km,” September 27, 2022, https://hydrogen-central.com/quantron-hydrogen-powered-truck-range-1500-km.115
  116. IEA, “Fuel Cell Electric Vehicle Stock and Hydrogen Refuelling Stations by Region, 2021,” October 26, 2022, https://www.iea.org/data-and-statistics/charts/fuel-cell-electric-vehicle-stock-and-hydrogen-refuelling-stations-by-region-2021.116
  117. IEA, op. cit. note 115.117
  118. Ibid.118
  119. Ibid.119
  120. Business & Human Rights Resource Centre, “Human Rights in the Mineral Supply Chains of Electric Vehicles,” https://www.business-humanrights.org/en/from-us/briefings/transition-minerals-sector-case-studies/human-rights-in-the-mineral-supply-chains-of-electric-vehicles, accessed March 8, 2023. 120
  121. BloombergNEF, op. cit. note 106.121
  122. BloombergNEF, “Electric Vehicle Outlook 2022, Executive Summary, Batteries and Charging Infrastructure,” 2022, https://bnef.turtl.co/story/evo-2022/page/6/2.122
  123. Green Climate Fund, “B.33/11 Launch of the Second Replenishment of the GCF,” August 9, 2022, https://www.greenclimate.fund/decision/b33-11; United Nations Framework Convention on Climate Change, “COP27 Reaches Breakthrough Agreement on New ‘Loss and Damage' Fund for Vulnerable Countries,” November 20, 2022, https://unfccc.int/news/cop27-reaches-breakthrough-agreement-on-new-loss-and-damage-fund-for-vulnerable-countries; Rockefeller Foundation “Global Philanthropies Create New Multilateral Development Banks Challenge Fund to Increase Investment in Developing Countries,” December 10, 2022, https://www.rockefellerfoundation.org/news/global-philanthropies-create-new-multilateral-development-banks-challenge-fund-to-increase-investment-in-developing-countries. 123

Renewable Energy Systems and Infrastructure | Market Developments

Market Developments

Pumped storage continues to account for the largest portion of global energy storage capacity by far. In 2022, global pumped storage capacity increased by 10.5 GW for a total of 175 GW. 88 Utility-scale battery capacity has grown much faster but from a relatively small base. 89 ( See Figure 3.)

Pumped storage capacity is concentrated mainly in China, with 26% of the global capacity. 90 In 2022, China accounted for 82% of the newly added capacity, leading in pumped storage additions for the 10th year in a row. 91 The Jinzhai pumped storage plant in Anhui Province was completed in January 2023, connecting more than 1.2 GW and contributing to the total of 8.8 GW of pumped storage added to the Chinese grid in January 2023. 92 Construction began on the USD 3 billion Fengning plant, which is expected to store up to 40 gigawatt-hours (GWh) of electricity and will use 12 reversible turbines to produce energy in high demand periods, pumping water to the upper reservoir at times of low demand. 93

In Europe, two major pumped storage facilities came online in 2022. In Portugal, the Tâmega Gigabattery, capable of storing 40 GWh, was inaugurated in July, and the first of four 220 MW pump turbines at the Gouvães hydropower plant was added to the Tâmega hydropower complex, where the Gouvães, Daivões and Alto Tâmega reservoirs are poised to generate an estimated 1.8 TWh per year when completed in 2024. 94 In Switzerland, the 14-year Nant de Drance project came online at a cost of USD 2.15 billion, with a reservoir capable of storing 20 GWh that will feed a series of six turbines with a total capacity of 900 MW. 95

In the United States, two projects with a combined pumped storage capacity of up to 17 GWh were submitted for the final licencing phase, joining only six other projects that have reached that phase in the last 20 years. 96

Total utility-scale battery capacity increased by around 67% in 2022, adding 11 GW to reach 28 GW in operation. 97 In the United States, installed grid-scale battery storage reached around 9 GW, with nearly half of this (4 GW) installed just in 2022. 98 In Europe, including the United Kingdom, 1.9 GW was installed in 2022, bringing the total capacity to 4.5 GW. 99 In China, an estimated 4.8 GW of utility-scale battery storage capacity was added, for a total installed capacity of 8.5 GW. 100

FIGURE 3.

Capacity Additions of Pumped Storage and Utility-Scale Battery Storage, by Region, and Total Storage Capacity, 2022

 FIGURE 3.

Source: See endnote 89 for this module.

Image

With regard to regional interconnections, in August 2022 the transmission system operator TenneT agreed to 14 offshore grid connection contracts in the German and Dutch areas of the North Sea. 101 The contracts totalled around EUR 30 billion (USD 32.9 billion) and are expected to result in a transmission capacity of 28 GW of offshore wind power. 102 This represents Europe's largest-ever grid infrastructure contracting package and was driven mainly by concerns about the security of supply and by the transition to renewable electricity. 103

In 2022, India and the Maldives signed a memorandum of understanding to establish a transmission interconnection for renewable energy. 104 Egypt and Saudi Arabia similarly signed a memorandum of understanding and subsequent contracts to establish an electricity interconnection line between the countries. 105 The EU's Agency for the Cooperation of Energy Regulators published bidding zone configurations for transmission system operators to exchange energy without capacity allocation. 106

Sector coupling requires precise co-ordination, which can be achieved through digitalisation. Sector coupling can benefit from smart grids, smart network infrastructure development, and the development of “digital twins” as a data-based testing site for energy management and sector coupling. 107 Projects continue to be developed: Allianz provided EUR 25 million (USD 27.8 million) for a green hydrogen and power-to-gas project in Finland. 108 In Denmark, a 6 MW power-to-hydrogen prototype unit has been deployed to supply extra thermal energy to a district heating system. 109

With regard to energy storage optimisation, Pacific Gas and Electric (PG&E) in the US state of California uses artificial intelligence, advanced price forecasting, portfolio optimisation and market bidding algorithms to ensure that the electric system is responding optimally to wholesale market reliability needs. 110 In 2021, California's Independent System Operator (CAISO) implemented a trading platform powered by artificial intelligence to provide optimisation and market bidding services to the 182.5 MW (730 MWh) battery storage system in Moss Landing. 111 The platform provides asset and portfolio managers with updated price forecasts and optimised bids every hour, allowing PG&E to maximise the value of the asset for its customers, improve grid reliability and efficiency, and support California's transition to a more stable and resilient electric grid. 112

Data analytics in weather forecasting also helps power producers optimise their operations, reduce grid balancing costs, and improve the integration of wind and solar energy into the grid. In 2019, several states in India issued prediction requirements obligating operators of wind and solar farms to provide the respective grid operator with scheduling details for power generation, either through engagement with a qualified co-ordination agency or by fulfilling the prediction requirements themselves. 113 In case of imprecise predictions, power producers may incur fees due to outages.

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Image

In 2022, scientists in Spain developed a new methodology for long-term prediction that focuses on the atmospheric circulation patterns on a planetary scale. 114 In the EU, the Destination Earth initiative (Use Case Energy Systems) provides tools and guidance to support grid operators with system modelling and grid planning by improving the accuracy and reliability of clouds and storm data and analysis. 115 Those forecasting solutions use advanced models, local weather data and historical performance data to deliver high-quality predictions, contributing to greater efficiency, reliability and economic viability of projects.

During 2019-2022, the Smart4RES project (funded by the EU's Horizon 2020 research and innovation programme) focused on research and development and the validation of a next generation of tools for modelling and forecasting energy production from variable renewable energy, as well as on decision making within different power system and electricity markets. 116 The project, which concludes in 2023, has proposed tools to ensure at least a 15% increase in the forecasting performance of variable renewables. 117 It also defines requirements for forecasting technologies to enable near-100% penetration of renewables by 2030 and beyond, introducing new data-driven optimisation and decision-making tools to enable the large-scale penetration of renewables into the electricity market and the provision of system services towards transmission and distribution system operators. 118

In Japan, customer-centric demand-side management aims to optimise the operation of 74 GW of installed solar energy that drives the common “duck curve i ” of low mid-day prices and steep ramping rates in the evening. 119 Japan's Agency for Natural Resources and Energy has outlined a strategic plan that focuses heavily on demand-side measures, with new balancing and flexibility products being developed starrng in 2022. These include: 1) a capacity mechanism; 2) reserve product replacement reserves for feed-in tariffs opened to demand aggregators, with day-ahead bidding and availability payments; and 3) a suite of faster operarng services providing frequency response, requiring on-site reaction to the changing frequency. 120

A virtual power plant (VPP) is a cloud-based network that consists primarily of distributed energy resources – such as solar panels, wind turbines and energy storage systems – that are aggregated and co-ordinated to operate as a single entity ii . VPPs can be controlled and optimised using advanced software algorithms, which enable them to provide grid services, such as frequency regulation and voltage control. This can help stabilise the grid and improve the integration of renewable sources. VPPs can: 1) ensure enhanced grid reliability by pooling resources, helping to stabilise the grid during periods of peak demand or during fluctuations in renewables, improving the overall reliability of the power system; 2) ensure optimal use of distributed resources, by co-ordinating their operation according to grid requirements and market conditions; and 3) reduce investment in traditional centralised power plants, by harnessing the combined capacity of smaller, decentralised, distributed energy resources.

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Many countries worldwide saw rising interest in VPPs in 2022, and the market value globally reached USD 3.36 billion121 ( See Table 1.) One of the largest VPP operators in Europe, Next Kraftwerke, has more than 15,000 aggregated units across eight countries, with a network capacity of roughly 13 GW and an annual trade volume of more than 15 TWh. 122 Given its innovative and successful business model, the company was acquired in 2021 by Shell. 123 BP was the first to jump on this trend in 2021 when it acquired Blueprint Power, a US-based VPP operator. 124 Along with the acquisition, in early 2023 Lighthouse bp, a subsidiary of BP, began a solar plant operation in the US state of Indiana, supported by a virtual power purchase agreement. 125

Table 1.

Networked Capacity of Selected VPP Operators Worldwide, as of Early 2023

 Table 1.

Source: See endnote 121.

China has established pilot projects to build VPPs in locations such as Hebei, Shandong, Shanghai and Shanxito to distribute electricity more efficiently. The newly launched VPP in Shenzhen can pull together a capacity of 870 MW, which is planned to increase to 10 GW by 2025. 126 In Japan, Tesla has been installing its Powerwall batteries in homes on Miyako-jima island since 2021, with more than 300 installed to form the country's largest commercial VPP. 127 Dubai Electricity and Water Authority in the United Arab Emirates is now using a VPP, the first of its kind in the Middle East, to enhance its smart grid integration between different energy sources. 128

In Greece, Protergia, the power and gas unit of the Greek company Mytilineos, together with the German firm emsys VPP, officially inaugurated the country's first VPP in 2022. 129 Equipped with the complete software-as-a-service solution for aggregators, Protergia has digitised its own solar and wind power portfolio, as well as those of third parties, to monitor, forecast, remote-control and trade their variable electricity production in real time. The facilities will be enabled to participate in the market as balancing service providers on their own or through a renewable energy aggregator, which, with proper management, will revitalise existing revenue streams. 130

In the United States, the Puerto Rico Electric Power Authority (PREPA) selected Sunrun in 2022 to deploy a 17 MW solar-plus-storage VPP network, marking the first large-scale distributed storage project on the island. 131 In Puerto Rico, having experienced many hurricanes such as Maria in 2017, a VPP network can stabilise the island's power grid by connecting more than 7,000 Sunrun residential solar-plus-storage systems. 132

Microgrids represent a shift in electricity generation, distribution, and consumption, offering economic benefits, enhanced reliability, resilience, and sustainability by operating as self-contained power systems that can connect to or operate independently of the main grid, optimising the performance of renewable and conventional energy assets, particularly in rural and off-grid areas. 133 ( See Sidebar 2) Microgrids can demonstrate resilience in extreme weather events and showcase how renewables can create sustainable and resilient communities in the face of climate change and natural disasters. 134 (See Snapshot: United States.)

Snapshot.UNITED STATES

Microgrids for Resilience Against Natural Disasters

Babcock Ranch in South Florida is a 100% solar community, calling itself “America's first solar-powered town”. The local solar array, made up of 700,000 individual panels, can generate more electricity than is used in the 2,000-home neighbourhood, in a state where most power is generated by burning fossil gas. In 2022, when Hurricane Ian battered Florida's eastern coast, the community did not lose power or Internet connectivity, showcasing its robust design and ability to withstand extreme weather events. The town's infrastructure includes a network of lakes to mitigate flooding, energy-efficient buildings, and a microgrid system that enables it to function independently from the main grid.

Read more Collapse

Microgrids for Resilience Against Natural Disasters

Babcock Ranch in South Florida is a 100% solar community, calling itself “America's first solar-powered town”. The local solar array, made up of 700,000 individual panels, can generate more electricity than is used in the 2,000-home neighbourhood, in a state where most power is generated by burning fossil gas. In 2022, when Hurricane Ian battered Florida's eastern coast, the community did not lose power or Internet connectivity, showcasing its robust design and ability to withstand extreme weather events. The town's infrastructure includes a network of lakes to mitigate flooding, energy-efficient buildings, and a microgrid system that enables it to function independently from the main grid.

Image

Babcock Ranch serves as an example of how solar power, coupled with thoughtful planning and advanced technology, can create sustainable, resilient communities that can thrive in the face of climate change and natural disasters. To benefit from the inherent resiliency of distributed power and the microgrid-intelligent controllers, the solar panels must first survive a severe storm event, whether on the ground or attached to roofs. Encased in glass, the thin and technologically complicated solar PV modules would appear to be a prime target for hurricane-force destruction, but solar panels are surprisingly robust. Solar installers often take extra precautions when installing systems in hurricane-prone areas, designing them specifically to withstand the highest possible hurricane-force winds and making sure the solar panels will stay safe.

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Source: See endnote 134

Footnotes

i The term was first used in 2012 and was coined by the California Independent System Operator in the United States.

ii VPPs can also (less commonly) aggregate other, non-distributed energy resources.

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  7. Ibid.7
  8. Carbon Tracker Initiative, “Britain Wastes Enough Wind Generation to Power 1 Million Homes”, June 15, 2023, https://carbontracker.org/britain-wastes-enough-wind-generation-to-power-1-million-homes.8
  9. B. Wehrmann, “Germany Curtails Four Percent of Renewable Power Production Due to Grid Bottlenecks”, Clean Energy Wire, December 13, 2022, https://www.cleanenergywire.org/news/germany-curtails-four-percent-renewable-power-production-due-grid-bottlenecks. 9
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  11. C. Murray, “Transmission and Valuation the Major Challenges to Energy Storage Deployments in US Today”, Energy Storage News, March 28, 2023, https://www.energy-storage.news/transmission-and-valuation-the-major-challenges-to-energy-storage-deployments-in-us-today; N. El Chami and V. Gialdi Carvalho, “Evolution of Business Models for Energy Storage Systems in Europe”, Energy Storage News, April 11, 2023, https://www.energy-storage.news/evolution-of-business-models-for-energy-storage-systems-in-europe.11
  12. International Renewable Energy Agency (IRENA), “Utility-scale Batteries: Innovation Landscape”, 2019, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Sep/IRENA_Utility-scale-batteries_2019.pdf. 12
  13. IRENA, “Sector Coupling in Facilitating Integration of Variable Renewable Energy in Cities”, October 2021, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2021/Oct/IRENA_Sector_Coupling_in_Cities_2021.pdf. 13
  14. Ibid.14
  15. Hydrogen Central, “Greenhyscale Has Begun the Installation Process of a 6 MW Prototype Electrolyser in the Danish Green Industrial Park, Greenlab”, April 12, 2023, https://hydrogen-central.com/greenhyscale-begun-installation-process-6-mw-prototype-electrolyser-danish-green-industrial-park-greenlab. 15
  16. Energy Market Authority, Government of Singapore, “What Is Demand Side Management”, 2022, https://www.ema.gov.sg/Demand_Side_Management.aspx.16
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  20. Sidebar 1 based on the following sources: IEA and Réseau de Transport d'Electricité, “Conditions and Requirements for the Technical Feasibility of a Power System with a High Share of Renewables in France Towards 2050”, March 16, 2021, https://doi.org/10.1787/6be9f3ac-en; N.K. Roy et al., “Virtual Inertia Support in Power Systems for High Penetration of Renewables – Overview of Categorization, Comparison, and Evaluation of Control Techniques”, IEEE Access, Vol. 10 (2022), pp. 129190–216, https://doi.org/10.1109/ACCESS.2022.3228204; D. Pagnani et al., “Overview of Black Start Provision by Offshore Wind Farms”, IECON 2020 The 46th Annual Conference of the IEEE Industrial Electronics Society, 2020, pp. 1892-1898, https://ieeexplore.ieee.org/document/9254743; Think Grid, “Synchronous Condensers for Better Grid Stability”, March 16, 2016, https://www.think-grid.org/synchronous-condensers-better-grid-stability; P. Denholm et al., “Inertia and the Power Grid: A Guide Without the Spin”, National Renewable Energy Laboratory (NREL), May 1, 2020, https://www.nrel.gov/docs/fy20osti/73856.pdf; Y. Lin et al., “Research Roadmap on Grid-Forming Inverters”, NREL, November 2020, https://www.nrel.gov/docs/fy21osti/73476.pdf.20
  21. BloombergNEF, “A Power Grid Long Enough to Reach the Sun Is Key to the Climate Fight”, March 8, 2023, https://about.bnef.com/blog/a-power-grid-long-enough-to-reach-the-sun-is-key-to-the-climate-fight.21
  22. Ibid.22
  23. Electric Power Research Institute, “Understanding Flexible Interconnection”, September 20, 2018, https://restservice.epri.com/publicdownload/000000003002014475/0/Product.23
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  28. Ibid.28
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  33. A. Colthorpe, “Israel Adds Energy Storage-Friendly Tariffs to Maximise Renewable Energy Potential”, Energy Storage News, April 17, 2023, https://www.energy-storage.news/israel-adds-energy-storage-friendly-tariffs-to-maximise-renewable-energy-potential. 33
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  70. Ibid.70
  71. China Briefing News, “China's Energy Storage Sector: Policies and Investment Opportunities”, July 8, 2022, https://www.china-briefing.com/news/chinas-energy-storage-sector-policies-and-investment-opportunities. 71
  72. BloombergNEF, “Top 10 Energy Storage Trends in 2023”, January 11, 2023, p. 10, https://about.bnef.com/blog/top-10-energy-storage-trends-in-2023; C. Murray, “US Battery Supply Chain Investments Reach US$92 Billion Since Biden Took Office”, Energy Storage News, January 26, 2023, https://www.energy-storage.news/us-battery-supply-chain-investments-reach-us92-billion-since-biden-took-office. 72
  73. G. de Blas, “Japan's FIP Scheme and Battery Storage Subsidy Are
    Driving Forces to Boost Renewables”, RatedPower, December 21,
    2022, https://ratedpower.com/blog/japan-fip-scheme-battery-storage.73
  74. A. Colthorpe, “ARENA Pledges Funding Support to 4.2GWh of Battery Storage Across Australia”, Energy Storage News, December 19, 2022, https://www.energy-storage.news/arena-pledges-funding-support-to-4-2gwh-of-battery-storage-across-australia. 74
  75. A. Colthorpe, “Australia to Begin ‘Energy Storage Target' Tenders This Year, Details to Come in Budget”, Energy Storage News, May 4, 2023, https://www.energy-storage.news/australia-to-begin-energy-storage-target-tenders-this-year-details-to-come-in-budget. 75
  76. C. Murray, “Development Banks IFC and AfDB Finance Solar-plus-Storage Projects in Malawi and Eritrea”, Energy Storage News, April 19, 2023, https://www.energy-storage.news/development-banks-ifc-and-afdb-finance-solar-plus-storage-projects-in-malawi-and-eritrea. 76
  77. C. Murray, “US' DFC Provides US$25 Million for Malawi Solar-plus-Storage Project”, Energy Storage News, September 26, 2022, https://www.energy-storage.news/us-dfc-provides-us25-million-for-malawi-solar-plus-storage-project. 77
  78. C. Murray, “Development Banks Invest US$83 Million in 34MWh of Storage Projects in Guyana”, Energy Storage News, June 21, 2022, https://www.energy-storage.news/development-banks-invest-us83-million-in-34mwh-of-storage-projects-in-guyana. 78
  79. International Hydropower Association (IHA), “New Tool Maps World's Water Batteries: The Clean Storage Solution for Renewables”, September 11, 2017, https://www.hydropower.org/news/new-tool-maps-world-e2-80-99s-water-batteries-the-clean-storage-solution-for-renewables. 79
  80. rPlus Hydro, “rPlus Hydro Reaches Major Milestone on Its 900-Megawatt Seminoe Pumped Storage Project”, January 26, 2023, https://www.prnewswire.com/news-releases/rplus-hydro-reaches-major-milestone-on-its-900-megawatt-seminoe-pumped-storage-project-301731647.html; Litian Heavy Industry Machinery Co., Ltd, “Zhejiang Jinyun Pumped Storage Hydropower Project”, https://www.litechtools.com/rock-drilling-tools-zhejiang-jinyun-pumped-storage-hydropower-project.html, accessed May 5, 2023; Hydro Review, “Iberdrola Connects First 220 MW Pump-Generating Unit at Tâmega Complex”, January 31, 2022, https://www.hydroreview.com/hydro-industry-news/iberdrola-connects-first-220-mw-pump-generating-unit-at-tamega-complex. 80
  81. BloombergNEF, op. cit. note 67; IEA, op. cit. note 69.81
  82. IEA, op. cit. note 69.82
  83. Ibid.83
  84. Ibid.84
  85. Colthorpe, op. cit. note 75.85
  86. R. Kumar Singh, “India Unveils $30 Billion Plan to Upgrade Grid for Clean Power”, Bloomberg, December 8, 2022, https://www.bloomberg.com/news/articles/2022-12-08/india-unveils-30-billion-plan-to-upgrade-grid-for-clean-power. 86
  87. IEA, op. cit. note 69.87
  88. Hydropower generation data in 2022 for all countries from IHA, personal communications with REN21, May 11, 2023, unless otherwise stated.88
  89. Ibid. IEA, “Annual grid-scale battery storage additions, 2017-2022”,
    2023, https://www.iea.org/data-and-statistics/charts/annual-grid-scale-battery-storage-additions-2017-2022. Figure 3 from
    all sources in this note.89
  90. Ibid.90
  91. Ibid.91
  92. General Electric, “GE Connects All Units at 12 GW Jinzhai Pumped Storage Hydro Power Plant in China”, January 31, 2023, https://www.ge.com/news/press-releases/ge-connects-all-units-at-12-gw-jinzhai-pumped-storage-hydro-power-plant-in-china; China National Energy Administration, “Transcript of the press conference of the National Energy Administration in the first quarter of 2023”, http://www.nea.gov.cn/2023-02/13/c_1310697149.htm.92
  93. I. Todorović, “China's State Grid Puts World's Biggest Pumped Storage Hydropower Plant Online”, Balkan Green Energy News, https://balkangreenenergynews.com/chinas-state-grid-puts-worlds-biggest-pumped-storage-hydropower-plant-online. 93
  94. Water Power Magazine, “First Unit Connected at Gouves Plant, Portugal”, January 24, 2022, https://www.waterpowermagazine.com/news/newsfirst-unit-connected-at-gouves-plant-portugal-9448843; C. Murray, “Iberdrola's 880 MW Pumped Hydro Plant in Portugal to Go Online in Mid-2022”, Energy Storage News, February 3, 2022, https://www.energy-storage.news/iberdrolas-880mw-pumped-hydro-plant-in-portugal-to-go-online-in-mid-2022; I. Todorović, “Portugal, Switzerland Launch Pumped Storage Hydropower Plants of Over 2 GW in Total”, Balkan Green Energy News, July 22, 2022, https://balkangreenenergynews.com/portugal-switzerland-launch-pumped-storage-hydropower-plants-of-over-2-gw-in-total. 94
  95. France 3 Auvergne-Rhône-Alpes, “Suisse : dans les entrailles de la toute-puissante centrale hydroélectrique de Nant de Drance”, November 14, 2022, https://france3-regions.francetvinfo.fr/auvergne-rhone-alpes/haute-savoie/annecy/video-suisse-dans-les-entrailles-de-la-toute-puissante-centrale-hydroelectrique-de-nant-de-drance-2654772.html. 95
  96. C. Murray, “rPlus Energies Submits Final License Application for 9GWh Pumped Hydro Plant in Wyoming”, Energy Storage News, January 26, 2023, https://www.energy-storage.news/rplus-energies-submits-final-license-application-for-9gwh-pumped-hydro-plant-in-wyoming; C. Murray, “rPlus Hydro Submits Final License Application for 8GWh Pumped Hydro Plant in Nevada”, Energy Storage News, March 8, 2023. https://www.energy-storage.news/rplus-hydro-submits-final-license-application-for-8gwh-pumped-hydro-plant-in-nevada; IEA, “Annual grid-scale battery storage additions, 2017-2022”, 2023, https://www.iea.org/data-and-statistics/charts/annual-grid-scale-battery-storage-additions-2017-2022. 96
  97. IEA, op. cit. note 8997
  98. A. Colthorpe, “US Installed Grid-Scale Battery Storage Capacity Reached 9GW/25GWh in ‘Record-Breaking' 2022”, Energy Storage News, February 28, 2023, https://www.energy-storage.news/us-installed-grid-scale-battery-storage-capacity-reached-9gw-25gwh-in-record-breaking-2022. 98
  99. C. Murray, “Europe Reached 4.5GW of Battery Storage Installed in 2022; Could Hit 95GW by 2050”, Energy Storage News, April 20, 2023, https://www.energy-storage.news/europe-reached-4-5gw-of-battery-storage-installed-in-2022-could-hit-95gw-by-2050. 99
  100. S&P Global Commodity Insights, “China's Power Companies Mull Gameplan for Next Phase of Energy Transition”, April 3, 2023, https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/energy-transition/040323-chinas-power-companies-mull-gameplan-for-next-phase-of-energy-transition. 100
  101. TenneT, “Around €30 Billion: Europe's Largest-Ever Contracting Pack-Age for Security of Supply, the Energy Transition and Climate Protection Launched”, April 20, 2022, https://www.tennet.eu/news/around-eu30-billion-europes-largest-ever-contracting-pack-age-security-supply-energy. 101
  102. Ibid.102
  103. Ibid.103
  104. S. Takyar, “India and Maldives to Establish Transmission Interconnection for Renewable Power Transfer”, REGlobal, April 27, 2022, https://reglobal.co/india-and-maldives-to-establish-transmission-interconnection-for-renewable-power-transfer-. 104
  105. IEA, “Egypt-Saudi Electricity Interconnection Project – Policies”,
    April 4, 2022, https://www.iea.org/policies/14291-egypt-saudi-
    electricity-interconnection-project    .105
  106. EU Agency for the Cooperation of Energy Regulators, “ACER Has Decided on Alternative Electricity Bidding Zone Configurations”, August 9, 2022, https://www.acer.europa.eu/news-and-events/news/acer-has-decided-alternative-electricity-bidding-zone-configurations. 106
  107. H. Madsen, DTU Compute, “Digitalisation for Sector-Coupling and the Future Weather-Driven Energy System”, March 2023, https://www.flexibleenergydenmark.dk/media/bp3dizwo/talk_daces.pdf.107
  108. Green Car Congress, “Allianz to invest in Finnish green hydrogen and power-to-gas developer Ren-Gas; sector coupling”, December 12, 2022, https://www.greencarcongress.com/2022/12/20221212-rengas.html.108
  109. Hydrogen Central, “Greenhyscale Has Begun the Installation Process of a 6 MW Prototype Electrolyser in the Danish Green Industrial Park, Greenlab”, April 12, 2023, https://hydrogen-central.com/greenhyscale-begun-installation-process-6-mw-prototype-electrolyser-danish-green-industrial-park-greenlab. 109
  110. Bloomberg, “Fluence's Artificial Intelligence-Enabled Market Bidding Platform Selected to Optimize 182.5 MW Battery Energy Storage System”, February 17, 2021, https://www.bloomberg.com/
    press-releases/2021-02-17/fluence-s-artificial-intelligence-enabled-
    market-bidding-platform-selected-to-optimize-182-5-mw-battery-
    energy-storage-system    . 110
  111. Energy Industry, “Fluence's AI-Powered Trading Platform to Optimize 182.5 MW Battery Energy Storage System in California”, Energy Industry Review, February 18, 2021, https://energyindustryreview.com/marketplace/fluences-ai-powered-trading-platform-to-optimize-182-5-mw-battery-energy-storage-system-in-california. 111
  112. Ibid.112
  113. A. Parikh, “Punjab Solar & Wind Deviation Settlement Mechanism to Come into Effect from January 2020”, Mercom India, October 25, 2019, https://mercomindia.com/punjab-solar-wind-deviation-jan-2020; Forum of Regulators, “Model Guidelines for Management of RE Curtailment”, January 2020, http://www.forumofregulators.gov.in/Study_Reports.html.113
  114. P. Sánchez Molina, “New Method for Long-Term Prediction of Renewables Generation in Europe”, pv magazine International, April 25, 2022, https://www.pv-magazine.com/2022/04/25/new-method-for-long-term-prediction-of-renewables-generation-in-europe. 114
  115. European Centre for Medium-Range Weather Forecasts, “Destination Earth Use Case, Energy Systems”, https://stories.ecmwf.int/energy-systems-use-case/index.html, accessed July 2023. 115
  116. SMART4RES, https://www.smart4res.eu, accessed May 2023.116
  117. Ibid.117
  118. ENTSO-E Technopedia, “Enhanced RES Infeed Forecasting – Wind”, 2022, https://www.entsoe.eu/Technopedia/techsheets/enhanced-res-infeed-forecasting-wind.118
  119. Smart Energy International, “Customer Centric DR Key for Japan's Energy Transition Challenges”, August 3, 2022, https://www.smart-energy.com/industry-sectors/energy-grid-management/customer-centric-demand-response-a-key-solution-for-japans-energy-transition-challenges. 119
  120. Ibid.120
  121. Yahoo Finance, “Global Virtual Power Plant Market Report 2022: High Investment in VPP Installations Is a Key Trend”, May 31, 2023, https://finance.yahoo.com/news/global-virtual-power-plant-market-141500559.html. Table 1 based on the following sources: AGL, “Annual Reports | Investors | About AGL”, August 19, 2022, https://www.agl.com.au/about-agl/investors/annual-reports; Autogrid, “Webinar: Building an Adaptive Energy Grid with DERMS and VPP”, https://www.auto-grid.com/assets/guidehouse-insights-vpp-leaderboard-2022, accessed May 31, 2023; Enel, “‘Enel Box', the New Enel Grids Solution for More Sustainable Substations as Part of a Circular Economy”, April 7, 2023, https://www.enel.com/media/explore/search-press-releases/press/2023/04/enel-box-the-new-enel-grids-solution-for-more-sustainable-substations-as-part-of-a-circular-economy; Federal Ministry of Economic Affairs and Climate Action, “Virtual Power Plants Come of Age in Europe”, May 4, 2022, https://www.german-energy-solutions.de/GES/Redaktion/EN/News/2022/20220504-virtual-powerplants.html; Prospero, “Biggest Virtual Power Plants in the World”, December 11, 2021, https://www.prosperoevents.com/biggest-virtual-power-plants-in-the-world; J. St. John, “OhmConnect Bets $100M That Free Smart Thermostats Can Prevent Summer Blackouts in California”, Canary Media, June 15, 2021, https://www.canarymedia.com/articles/grid-edge/ohmconnects-100m-bet-on-1-million-free-thermostats-to-save-california-from-summer-blackouts; M. Topalov, “Statkraft Unveils 1 GW Virtual Power Plant in UK, Intends to Double Capacity by Summer”, Current News, March 5, 2019, https://www.current-news.co.uk/statkraft-unveils-1gw-virtual-power-plant-in-uk-intends-to-double-capacity-by-summer; N. Wetsman, “Tesla Quietly Built a Virtual Power Plant in Japan”, The Verge, August 29, 2022, https://www.theverge.com/2022/8/29/23326776/tesla-virtual-power-plant-japan-grid-renewable; F. Lambert, “Tesla Virtual Power Plant Is Rocketing Up, Reaches 50 MW”, Electrek, September 2, 2022, https://electrek.co/2022/09/02/tesla-virtual-power-plant-growing.121
  122. Next Kraftwerke, https://www.next-kraftwerke.com/vpp, accessed May 2023.122
  123. Shell, “Shell Acquires Full Ownership of MachineMax to Drive Next Phase of Global Commercialization to Multiple Industry Sectors”, June 24, 2021, https://www.shell.com/business-customers/lubricants-for-business/news-and-media-releases/2021/shell-acquires-full-ownership-of-machinemax-to-drive-next-phase-of-global-commercialisation-to-multiple-industry-sectors.html. 123
  124. BP, “BP to Grow Leading US Technology Company That Turns Commercial Buildings into Virtual Power Plants”, October 7, 2021, https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-to-grow-leading-us-technology-company-that-turns-commercial-buildings-into-virtual-power-plants.html. 124
  125. Power Technology, “Lightsource bp begins operations at 152MW solar plant in Indiana”, May 24, 2023, https://www.power-technology.com/news/lightsource-bp-operations-bellflower-solar-indiana. 125
  126. Z. Chenchen and X. Hua, “First Virtual Power Plant Management Center Opens in S. China”, CGTN, September 17, 2022, https://news.cgtn.com/news/2022-09-17/First-virtual-power-plant-management-center-opens-in-S-China-1doKmadzJm0/index.html. 126
  127. N. Wetsman, “Tesla Quietly Built a Virtual Power Plant in Japan”,
    The Verge, August 29, 2022, https://www.theverge.com/2022/8/
    29/23326776/tesla-virtual-power-plant-japan-grid-renewable    .127
  128. C. Murray, “Belgian TSO: Residential Virtual Power Plant Will Cover 15% of Country's Grid-balancing Needs by End of Year”, Energy Storage News, September 14, 2022, https://www.energy-storage.news/belgian-tso-residential-virtual-power-plant-will-cover-15-of-countrys-grid-balancing-needs-by-end-of-year. 128
  129. Protergia, “Protergia and emsys VPP Officially Inaugurate First Virtual Power Plant in Greece”, pv magazine, November 3, 2022 https://www.pv-magazine.com/press-releases/protergia-and-emsys-vpp-officially-inaugurate-first-virtual-power-plant-in-greece-2. 129
  130. V. Spasić, “First Virtual Power Plant in Greek Energy Market
    Inaugurated”, Balkan Green Energy News, November 4, 2022,
    https://balkangreenenergynews.com/first-virtual-power-plant-
    in-greek-energy-market-inaugurated    . 130
  131. M. Schoeck, “Sunrun Selected to Deploy 17 MW VPP Network in
    Puerto Rico”, pv magazine, November 2, 2022, https://pv-magazine-
    usa.com/2022/11/02/sunrun-selected-to-deploy-17-mw-vpp-
    network-in-puerto-rico    . 131
  132. Ibid.132
  133. Sidebar 2 based on the following sources: US Department of Energy, “Grid Systems”, https://www.energy.gov/oe/grid-systems, accessed May 2023; NREL, “Microgrids”, https://www.nrel.gov/grid/microgrids.html, accessed May 2023; Center for Climate and Energy Solutions, “Microgrids”, https://www.c2es.org/content/microgrids, accessed May 2023; Siemens, “Microgrids for Sustainability”, https://www.siemens.com/global/en/products/energy/energy-automation-and-smart-grid/microgrid.html, accessed May 2023; GE Grid Solutions, “Microgrid and DER Management Solutions”, https://www.gegridsolutions.com/powerd/catalog/microgrid_der_mgmt.htm, accessed May 2023.133
  134. Snapshot: United States based on the following sources: Babcock
    Ranch, https://babcockranch.com, accessed 2023; D. Orf, “How Microgrids and Solar Panels Are Becoming Unsung Hurricane Heroes”, Popular Mechanics, December 2, 2022, https://www.popularmechanics.com/science/green-tech/a42126384/how-microgrids-and-solar-panels-are-becoming-unsung-hurricane-heroes; R. Ramirez, “This 100% Solar Community Endured Hurricane Ian with No Loss of Power and Minimal Damage”, CNN, October 2, 2022, https://edition.cnn.com/2022/10/02/us/solar-babcock-ranch-florida-hurricane-ian-climate/index.html. 134

Economic & Social Value Creation | Market Developments

Market Developments

Employment

In 2021, renewable energy employment increased to reach a record high of 12.7 million jobs. 113 (See Figure 2.) The solar PV industry remains the largest employer in the sector with 4.3 million jobs, followed by bioenergy with 3.4 million jobs in 2021 (down from 3.5 million in 2020). 114 Between 2020 and 2021, the number of jobs in hydropower increased from 2.2 million to 2.4 million, and wind energy jobs increased from 1.25 million to 1.4 million. 115 Employment in solar heating and cooling totalled 0.77 million and in “other” technologies totalled 0.43 million. 116

By region, Asia accounted for around two-thirds of all renewable energy jobs in 2021, while the Americas represented 21% and Europe 12%. 117 China was the largest renewable energy employer worldwide with 5.36 million jobs (42% of the global total). 118 Most of the jobs in the solar PV industry, around 3.39 million or 79%, were in Asia. 119 (See Figure 3.) China alone employed around 2.7 million people, representing 63% of the solar PV jobs in 2021. 120

For bioenergy, the Americas accounted for 43% of the global workforce, closely followed by Asia with 39%, while Europe represented only 17%. 121 Around 70% of the jobs in hydropower were in Asia, with the remainder in the Americas (18%), Europe (7%) and the rest of the world (4.5%). 122 Asia had most of the wind energy employment, at almost 60% (China alone accounted for 47% of the total), followed by Europe at 25%, the Americas at 16%, and Africa and Oceania at 2%. 123 Solar heating and cooling jobs were concentrated in Asia, mainly in China with 636,000 jobs (82% of the total in 2021), down from an estimated 670,000 jobs in 2020. 124

Women accounted for one-third (32%) of the renewable energy workforce overall in 2021, and the share of female employees in the solar industry is above average, at 40%. 125 However, most women in solar PV work in administration (58%), and across the energy sector the salaries of female workers remain 20% lower than those of men in equivalent positions. 126

Although the COVID-19 pandemic led to a decline in employment in distributed renewable energy, the sector recovered quickly and in some countries exceeded pre-pandemic employment levels by 2021. 127 Of the estimated more than 500,000 direct jobs in distributed renewables worldwide, most are in African countries (374,000 jobs), followed by India (80,000). 128 In Nigeria, the estimated 50,000 jobs in distributed renewables are nearly equivalent to the estimated 65,000 jobs in the oil and gas industry. 129

FIGURE 2.

Global Renewable Energy Employment, by Technology, 2013-2021

 FIGURE 2.

Source: See endnote 113 for this module.

Local Supply Chains

Global clean energy manufacturing capacity showed strong growth in 2022, with robust expansion in batteries (72%), solar PV (39%), electrolysers (26%) and heat pumps (13%). 130 Wind manufacturing capacity grew much more modestly at around 2%. 131

Solar PV global manufacturing capacity rose nearly 40% to around 640 gigawatts (GW), with 90% of the growth taking place in China. 132 China is home to nearly 80% of the total manufacturing capacity, with Vietnam and India accounting for 5% and 3%, respectively. 133 India's solar PV manufacturing capacity more than doubled from 18 GW in March 2022 to 38 GW in March 2023. 134

Diversification of supply chains is occurring as more countries opt to participate in the global renewable energy supply chain. Maxeom, a Mexico-based solar PV manufacturer, has completed the expansion of its solar PV module plant in Baja California, reaching a combined 2.5 GW with a workforce of around 2,000 people. 135 In June 2023, Germany announced a proposal for 10 GW of solar factories with a requirement to reduce the carbon footprint of the manufacturing process as manufacturers need to demonstrate a carbon dioxide (CO2) footprint below 18 grams per kilowatt-hour. 136

Battery manufacturing throughput totalled 340 gigawatt-hours (GWh) in 2021, and in 2022 this figure nearly doubled to reach 660 GWh. 137 Around 80% of the 2022 additions in manufacturing capacity were in China, with just over 10% in Europe and just under 10% in the United States. 138 France's first electric vehicle battery gigafactory was expected to start operation in summer 2023, creating an estimated 2,000 jobs as the country aims to become self-sufficient in vehicle battery production by 2027. 139

The diversification of renewable energy supply chains can minimise geopolitical risks.

Wind manufacturing capacity was around 100 GW in 2022, with China accounting for more than 60% of this capacity globally, followed by the EU (just under 15%) and the United States (10%). 140 Following years of expansion, the supply chain for the US domestic wind industry contracted in 2021. 141 However, the effect of the Inflation Reduction Act in 2022 was immediate, enabling the industry to begin to stabilise. Two GE subsidiaries announced plans to manufacture offshore wind parts in coastal New York, and at least six other companies are developing or expanding wind facilities around the country. 142

For heat pumps, the global manufacturing capacity is just under 120 GW, with around 35% located in China, 25% in the United States and just under 20% in the EU. 143 Virtually all of the project announcements for heat pumps manufacturing are situated in Europe.

FIGURE 3.

Global Renewable Energy Employment, by Technology and Region, 2021

 FIGURE 3.

Source: See endnote 119 for this module.

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FIGURE 4.

Population with Access to Electricity Through Off-Grid Renewable Energy Systems, 2012 and 2021

 FIGURE 4.

Source: See endnote 153 for this module.

Distributed Renewables for Energy Access

Electricity access worldwide changed little between 2019 and 2021, with an estimated 754 million people lacking access to electricity. 144 The impacts of the COVID-19 pandemic slowed progress towards the goals of universal access to clean cooking and electricity by 2030. In 2020, the number of people in Sub‐Saharan Africa without electricity access increased for the first time since 2013, as many households were unable to pay their energy bills due to the impacts of the pandemic. 145

Preliminary data suggest that in 2022, for the first time in decades, the number of people without access to electricity globally was expected to rise by 20 million to reach 774 million, reflecting the impacts of the pandemic compounded by high energy prices. 146 The rise was expected to occur mainly in Sub-Saharan Africa, home to around 80% of the people who lack access. 147 The African countries with the lowest shares of the population having access to electricity are South Sudan (7%), Chad (11%) and Burundi (12%). 148 Globally, the countries where the most people lack access to electricity remain Nigeria, the DRC and Ethiopia, where in total more than 230 million people are without access. 149

In 2022, 1.2 GW of renewable energy stand-alone systems (including renewable-based mini-grids and off-grid solutions) were added globally, for a total of around 12.4 GW. 150 Off-grid solar PV capacity grew by nearly 0.5 GW, with most of the increase occurring in Asia (nearly 0.4 GW) and Africa (less than 0.1 GW). 151

Decentralised renewables are the fastest way to scale up electricity access and are also more inclusive. 152 The number of people gaining access to electricity through off-grid renewable-based systems i more than doubled from 19 million in 2012 to 41 million in 2021. 153 (See Figure 4.)

As of 2022, an estimated 48 million people globally were connected to around 21,500 mini-grids, for a combined capacity of 7,224 megawatts (MW). 154 Around half of the installed mini-grids are powered by solar energy, followed by hydropower (35%) and fossil fuels (10%). 155 South Asia accounts for 9,600 systems with a total capacity of 407 MW, East Asia and the Pacific for 7,200 systems with a total capacity of 1,530 MW, and Africa for 3,100 systems with a total capacity of 1,960 MW. 156 (See Snapshot: Africa.) By country, most mini-grid projects are in India (18,900), Nigeria (2,700), Tanzania (1,500) and Senegal (1,200). 157

Another 29,400 mini grids are in planning stages, for a total of 2,657 MW, with a potential to connect more than 35 million people, mainly in Africa (9,000 projects) and South Asia (19,000 projects). 158 Solar PV accounts for 99% of all planned projects. 159 Achieving universal access to electricity will require more than 217,000 new mini-grids by 2030, at a cumulative investment cost of nearly USD 127 billion. 160

FIGURE 5.

Volume of Off-Grid Solar Products Sold, by Size and Type of Sale, 2022

 FIGURE 5.

Source: See endnote 162 for this module.

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Snapshot.AFRICA

Africa Minigrids Program – The UN Development Programme's Energy Access Project

The Africa Minigrids Program (AMP) aims to improve access to clean electricity by reducing the cost and increasing the economic viability of renewable energy mini-grids. The AMP was officially launched at the 2022 United Nations Climate Conference in Egypt and is expected to run until 2027. Funded primarily by the Global Environment Facility, the project is being implemented by the United Nations Development Programme (UNDP) in collaboration with RMI and the African Development Bank.

Read more Collapse

Africa Minigrids Program – The UN Development Programme's Energy Access Project

The Africa Minigrids Program (AMP) aims to improve access to clean electricity by reducing the cost and increasing the economic viability of renewable energy mini-grids. The AMP was officially launched at the 2022 United Nations Climate Conference in Egypt and is expected to run until 2027. Funded primarily by the Global Environment Facility, the project is being implemented by the United Nations Development Programme (UNDP) in collaboration with RMI and the African Development Bank.

Active in 21 African countries, the AMP seeks to adapt its implementation strategy to the specifics of the energy sector in each country. The programme strives to foster business model innovation, for example by supporting the digitalisation of mini-grids with innovative models such as pay-as-you-go. The AMP aims to unlock socio-economic benefits for vulnerable communities and to increase resilience to climate change by providing access to clean electricity.

Source: See endnote 156 for this module.

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Electrification in Sub-Saharan Africa has been based largely on off-grid solar PV products. However, the high price environment, with rising inflation rates, has pushed up the cost of components for off-grid systems. In 2022, the costs of both solar and hybrid mini-grids increased by at least 20% on average compared to pre-pandemic levels. 161 Even so, sales of off-grid solar products have continued to grow. In 2022, the number of off-grid solar products sold globally increased by around 2.1 million to some 9.5 million units, of which 6 million were cash-only products ii and 3.5 million were sold on a pay-as-you-go (PAYGo) basis iii . 162 (See Figure 5.)

As in 2021, most sales in 2022 were in Sub-Saharan Africa, which recorded 3.5 million cash-only sales and 3.2 million PAYGo sales (60% and 91% of the respective totals). 163 However, these technologies offer a relatively low level of overall electricity access, since 82% of sales were for portable lanterns and small devices (0-10 watts-peak) and only 18% for solar home systems (above 11 watts-peak). 164

Clean Cooking

In 2021, 2.4 billion people lacked access to clean cooking worldwide, of whom 55% were in Asia and 45% in Africa. 165 Following the COVID-19 pandemic, the population without access to clean cooking was projected to grow as prices of liquefied petroleum gas (LPG) rose and as countries began to remove subsidy schemes for LPG and other fuels to reduce pressures on already tight state budgets. 166 Higher fuel prices have pushed some households to revert to using traditional (solid) biomass for cooking, including around 50 million people in the least-developed countries in Asia and Africa in 2020. 167

Renewable energy can play an important role in providing access to clean cooking through solutions such as renewable-based electrification, solar thermal heat and modern bioenergy. In 2022, investment in clean cooking reached a record USD 200 million, although the sector remains heavily under-invested. 168 According to a recent report, investment in clean cooking companies remains in the tens of millions of dollars, well below the USD 4.5 billion of annual investment needed for the clean cooking industry to reach billions of people that still depend on polluting fuels by 2030. 169 In 2020 (latest data available), 88% of the capital going to clean cooking companies was from the private sector. 170 Although grants have been a common source of funding for clean cooking companies, the number of companies receiving grants has declined greatly in the last few years. 171

In 2022, the number of off-grid solar products sold globally increased by around 2.1 million to some 9.5 million units.

Mechanisms to spur investment in clean cooking have expanded in recent years. In 2022, five companies in West Africa (three of them promoting technologies such as biogas, ethanol and improved biomass stoves) were added to the Venture Catalyst programme of the Clean Cooking Alliance, launched in 2021. 172 The Modern Cooking Facility for Africa programme, financed by Sweden and managed by the Nordic Environment Finance Corporation (NEFCO), aims to bridge a critical gap between early-stage support, traditionally offered by challenge funds and (impact) equity, and the concessional/commercial debt needed for scaling in Sub-Saharan African countries. In 2022, the first round included support to cooking service providers of electric, solar thermal, biogas and bioethanol stoves. 173

Innovation in the clean cooking sector includes the introduction of metering technology in biogas, electric, and gasifier pellet stoves, which can play a potential role in the verification of carbon programmes and results-based financing programmes. 174 In 2021, the voluntary carbon offset programme Gold Standard approved a new methodology for certifying CO2 emissions from modern cooking appliances, allowing verification using metered devices. 175 In 2022, the Clean Development Mechanism approved a proposal by Inclusive Energy to monitor and report carbon abatement in biogas digesters. The approval means that remote metering solutions can be used by Gold Standard and the United Nations Framework Convention on Climate Change to monitor and report carbon abatement. 176 Other tools for digital monitoring of household biogas cooking projects are being developed to demonstrate their use in cost savings, revenue gains and increased value for carbon offset projects. 177

The growing use of PAYGo business models in the clean cooking sector has been reinforced by the development of metering technologies that allow real-time tracking of the fuel used, including electricity, (bio)ethanol and biogas. The Angaza software platform, which supports more than 200 distribution partners in over 50 countries, has integrated its PAYGo technology into more than 50 devices, including electric cook stoves and biodigesters; PAYGo cookstove sales registered on the platform have reportedly increased at a compound annual growth rate of more than 140% since 2017. 178

Product diversification across fuel types continues to be a relevant strategy in the sector. For example, BURN Manufacturing, a charcoal stove manufacturer, has launched electric pressure cookers for grid-connected consumers in Kenya, and ATEC International, originally a biodigester company operating in Bangladesh and Cambodia, has begun offering magnetic induction cookers to grid-connected consumers. 179 Bundling and diversifying represent a valuable opportunity for cooking enterprises to capitalise on existing distribution networks, reducing customer acquisition costs, potentially increasing revenues and spreading risk among multiple business lines. 180

Biogas could facilitate transitions to clean fuels in rural areas, but support is needed to cover the high upfront cost of biodigesters, the availability of sufficient feedstock, and training on use and maintenance. 181 A major recent development has been the entry of companies selling prefabricated modular biodigesters in African markets. 182 For instance, Sistema.Bio has sold more than 14,000 biodigesters, offering finance, after-sale service and training. 183 In 2019, the company raised USD 12 million in venture capital, followed in 2020 by a EUR 387,000 (USD 413,119) grant from EEP Africa. 184 In 2022, Sistema.Bio closed more than USD 15 million in financing to scale climate-smart clean energy technology. 185 More than 27,000 household biodigesters were installed in 2021 in selected countries in Asia and Africa, providing biogas for clean cooking and bio-slurry as organic fertiliser for agriculture. 186 In 2021, the installation rate rose 10% compared to 2020 and 7% compared to 2019 (pre-COVID). 187

In 2022, Rwanda signed an agreement with KOKO network to establish a USD 25 million renewable cooking fuel utility, including setting up a network of bioethanol cooking fuel vending machines. 188 Households use a modern two-burner bioethanol KOKO Cooker with a smart KOKO Canister that enables access to a network of high-tech “KOKO Point” fuel ATMs, which are refilled by a fleet of Smart MicroTankers. 189

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Footnotes

i Including solar home systems and mini-grids based on solar, hydropower and biogas.

ii Cash sales include a single transaction to a customer. This category also includes products purchased by governments or humanitarian organisations.

iii With PAYGo, customers pay for a product in instalments.

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  29. Ibid. 29
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  33. Ibid. 33
  34. IEA, op. cit. note 25. 34
  35. Ibid. 35
  36. Ibid. Snapshot: United States from the following sources: IRENA, op. cit. note 3; Ørsted, “North America's Building Trades Unions and Ørsted Agree to Build an American Offshore Wind Energy Industry with American Lab”, May 5, 2022, https://us.orsted.com/news-archive/2022/05/national-offshore-wind-agreement; P. Smith and S. Lee, “Unions Jockey for Offshore Wind Leasing Wins in Hostile States”, Bloomberg Law, July 12, 2022, https://news.bloomberglaw.com/daily-labor-report/unions-vie-to-get-in-on-ground-floor-of-offshore-wind-industry; N. Groom, “Vineyard Wind Strikes Labor Union Pact for U.S. Offshore Wind Farm”, Reuters, July 16, 2021, https://www.reuters.com/business/sustainable-business/vineyard-wind-strikes-labor-union-pact-us-offshore-wind-farm-2021-07-16; H. McCarron, “Mayflower Wind, Labor Unions Sign Pact for Offshore Wind Jobs”, May 10, 2023, https://eu.capecodtimes.com/story/news/2022/10/06/mayflower-wind-labor-unions-sign-pact-off-shore-wind-jobs/8169753001.36
  37. IRENA, op. cit. note 3. 37
  38. IEA, “Gender and Energy Data Explorer”, 2022, https://www.iea.org/data-and-statistics/data-tools/gender-and-energy-data-explorer?Topic=Employment&Indicator=Gender+wage+gap+conditional+on+skills; Cecelski and Oparaocha, op. cit. note 32. 38
  39. REN21 Policy Database, see GSR 2023 Data Pack, Reference Table R3, https://www.ren21.net/gsr2023-data-pack/esvc.39
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  43. D. Carroll, “Australia to Earmark $10 Billion Fund to Support Clean Energy Manufacturing”, pv magazine, March 31, 2023, https://www.pv-magazine.com/2023/03/31/australia-to-earmark-10-billion-fund-to-support-clean-energy-manufacturing.43
  44. International Trade Administration, “Brazil – Country Commercial Guide”, March 27, 2023, https://www.trade.gov/country-commercial-guides/brazil-energy.44
  45. IRENA, “The Hashemite Kingdom of Jordan – Renewables Readiness Assessment”, 2021, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2021/Feb/IRENA_RRA_Jordan_2021.pdf. 45
  46. JMK Research and Institute for Energy Economics and Financial Analysis, “India's Photovoltaic Manufacturing Capacity Set to Surge”, 2023, https://jmkresearch.com/renewable-sector-published-reports/indias-photovoltaic-manufacturing-capacity-set-to-surge. 46
  47. V. Srivastava, “Cabinet Approves Second Tranche of Rs 19,500 Crore Solar PLI Scheme”, BQ Prime, September 1, 2022, https://www.bqprime.com/business/cabinet-approves-second-tranche-of-rs-19500-crore-solar-pli-scheme; Shri R.K. Singh, Union Power and NRE Minister, “A Number of Steps Taken to Make India Self-reliant in Solar PV Module Manufacturing as Well as Their Exports”, Press Information Bureau, Government of India, March 21, 2023, https://pib.gov.in/PressReleseDetailm.aspx?PRID=1909269.47
  48. D. Omondi, “Power Companies Operating Mini-grids to Get Tax Refunds”, The Standard, January 14, 2022, https://www.standardmedia.co.ke/business/news/article/2001434330/power-companies-operating-mini-grids-to-get-tax-refunds.48
  49. North Africa Post, “Zimbabwe Bans Raw Lithium Exports as Demand, Prices Soar”, December 28, 2022, https://northafricapost.com/63912-zimbabwe-bans-raw-lithium-exports-as-demand-prices-soar.html; H. Muhammad, “Zimbabwe, DR Congo Ban Lithium, Cobalt Exports – How It Impacts Battery, EV Industry in Indonesia?” February 14, 2023, https://indonesiabusinesspost.com/world/zimbabwe-dr-congo-ban-lithium-cobalt-exports-how-it-impacts-battery-ev-industry-in-indonesia; Q. Zhou, “Indonesia to Ban Bauxite Export from June 2023: An Explainer”, ASEAN Briefing, 2022, https://www.aseanbriefing.com/news/indonesia-to-ban-bauxite-export-from-june-2023. 49
  50. The Business Standard, “China Bans Core Solar Panel Technologies' Export”, February 1, 2023, https://www.tbsnews.net/world/global-economy/china-bans-core-solar-panel-technologies-export-577842. 50
  51. BloombergNEF, “Energy Transition Investment Trends”, January 2023, https://about.bnef.com/energy-transition-investment.51
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  69. Ibid.69
  70. Ibid.70
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  79. Ibid.79
  80. J. St. John, “Manufacturing vs. Deployment: The Clean Energy Tax-credit Conundrum”, Canary Media, June 7, 2023, https://www.canarymedia.com/articles/clean-energy-manufacturing/manufacturing-vs-deployment-the-clean-energy-tax-credit-conundrum. 80
  81. Ibid.81
  82. IEA, “The State of Clean Technology Manufacturing”, 2023, https://www.iea.org/reports/the-state-of-clean-technology-manufacturing.82
  83. J. Touriño Jacobo, “New Initiative Aims to Scale Up Renewable Energy Manufacturing in Africa”, PV Tech, January 23, 2023, https://www.pv-tech.org/new-initiative-aims-to-scale-up-renewable-energy-manufacturing-in-africa.83
  84. The Brief, “Namibia Set for N$9bn Renewables Funding from European Investment Bank”, November 8, 2022, https://thebrief.com.na/index.php/component/k2/item/2008-namibia-set-for-n-9bn-renewables-funding-from-european-investment-bank.84
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  86. Ibid.86
  87. Ibid.87
  88. IRENA, “Off-grid Renewable Energy Solutions to Expand Electricity Access: An Opportunity Not to Be Missed”, 2019, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Jan/IRENA_Off-grid_RE_Access_2019.pdf.88
  89. GOGLA, op. cit. note 8. 89
  90. Ibid.90
  91. IEA, op. cit. note 54; ESMAP, “Mini-grids for Half a Billion People”, September 27, 2022, https://www.esmap.org/mini_grids_for_half_a_billion_people_the_report. 91
  92. IRENA, “Global Landscape of Renewable Energy Finance 2023”, 2023, https://www.irena.org/Publications/2023/Feb/Global-landscape-of-renewable-energy-finance-2023.92
  93. L. Fortes and D. Corbyn, “Off-grid Solar Investment Boomed in 2022 but the Sun Did Not Shine on All Companies Equally”, GOGLA, April 5, 2023, https://www.gogla.org/about-us/blogs/off-grid-solar-investment-boomed-in-2022-but-the-sun-did-not-shine-on-all-companies.93
  94. Ibid.94
  95. Ibid.95
  96. Ibid. 96
  97. Green Climate Fund, “Energy Generation and Access”, https://www.greenclimate.fund/results/energy-generation-access, accessed April 8, 2023.97
  98. World Bank, “World Bank Group Announces Major Initiative to Electrify Sub-Saharan Africa with Distributed Renewable Energy”, November 9, 2023, https://www.worldbank.org/en/news/press-release/2022/11/09/world-bank-group-announces-major-initiative-to-electrify-sub-saharan-africa-with-distributed-renewable-energy.98
  99. Ibid.99
  100. Fortes and Corbyn, op. cit. note 93.100
  101. World Bank, “Window 5 Operations Manual, Development Bank of Rwanda”, 2023, https://www.brd.rw/wp-content/uploads/2022/11/REF_Window_5_Operations_Manual.pdf.101
  102. IRENA, “Innovation Landscape for a Renewable-powered Future”, 2019, https://www.irena.org/publications/2019/Feb/Innovation-landscape-for-a-renewable-powered-future. Snapshot: Germany from the following sources: ABO Wind, “Renewables and Tourism”, https://www.abo-wind.com/uk/community/renewables-tourism.html, accessed April 10, 2023; M. Biben, “Zapadlý kout Německa bohatne z větru a slunce. Elektřiny vyrobí trojnásobek spotřeby a topí odpad”, Hospodářské noviny, November 14, 2022, https://archiv.hn.cz/c1-67131440-zapadly-kout-nemecka-bohatne-z-vetru-a-slunce-elektriny-vyrobi-trojnasobek-spotreby-a-topi-odpady.102
  103. M-KOPA, “Products”, November 14, 2020, https://m-kopa.com/products.103
  104. Sun King, “Powering Access to Brighter Lives”, https://sunking.com, accessed June 16, 2023.104
  105. ZOLA Electric, “Power Anywhere”, https://zolaelectric.com, accessed June 16, 2023.105
  106. d.light, “Solar Home Systems Outdoor & Solar Lanterns”, https://www.dlight.com, accessed June 16, 2023.106
  107. IEA, “The Role of Local Energy Communities in Clean Energy Transitions”, 2023, https://www.iea.org/events/the-role-of-local-energy-communities-in-clean-energy-transitions.107
  108. Australian Government, Department of Climate Change, Energy,
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  109. U.S. Department of Agriculture, “Biden-Harris Administration Makes Historic, $11 Billion Investment to Advance Clean Energy Across Rural America Through Investing in America Agenda”, https://www.usda.gov/media/press-releases/2023/05/16/biden-
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  110. Institute for Local Self-Reliance, “Californiaʻs Community Solar
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  111. REN21 Policy Database, see GSR 2023 Data Pack, Reference Table R5, https://www.ren21.net/gsr2023-data-pack/esvc.111
  112. U.S. Department of Energy, “National Community Solar Partnership Targets”, https://www.energy.gov/communitysolar/national-community-solar-partnership-targets accessed June 2, 2023.112
  113. IRENA, op. cit. note 3.113
  114. Ibid.114
  115. Ibid.115
  116. Ibid.116
  117. Ibid.117
  118. Ibid.118
  119. Figure 3 from Ibid.119
  120. Ibid.120
  121. Ibid.121
  122. Ibid.122
  123. Ibid.123
  124. Ibid.124
  125. IRENA, “Solar PV Energy: A Gender Perspective”, 2022, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Sep/IRENA_Solar_PV_Gender_perspective_2022.pdf?rev=61477241eb9e4db2932757698c554dc2. 125
  126. Ibid.; Cecelski and Oparaocha, op. cit. note 32. 126
  127. Power for All, “Powering Jobs Census 2022: The Energy Access Workforce”, 2022, https://www.powerforall.org/resources/reports/renewable-energy-jobs-sub-saharan-africa-and-india-2022-power-all. 127
  128. Ibid. 128
  129. Power for All, “Powering Jobs Census 2022: Focus on Nigeria”, 2022, https://www.powerforall.org/resources/reports/powering-jobs-census-2022-focus-nigeria; Power for All, op. cit. note 127.129
  130. IEA, op. cit. note 82. 130
  131. Ibid.131
  132. Ibid.132
  133. Ibid.133
  134. Institute for Energy Economics and Financial Analysis and JMK Research, “India's Photovoltaic Manufacturing Capacity Set to Surge”, JMK Research, 2023, https://jmkresearch.com/renewable-sector-published-reports/indias-photovoltaic-manufacturing-capacity-set-to-surge.134
  135. V. Thompson, “Maxeon's PV Module Capacity Hits 2.5 GW in Mexico”, June 27, 2023, https://www.pv-magazine.com/2023/06/27/maxeons-pv-module-capacity-hits-2-5-gw-in-mexico.135
  136. S. Enkhardt, “Germany Seeking Proposals for 10 GW of Solar
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  137. IEA, op. cit. note 82. 137
  138. Ibid.138
  139. K. Willsher, “France Opens First Electric Vehicle Battery Gigafactory”, The Guardian (UK), May 30, 2023, https://www.theguardian.com/business/2023/may/30/france-opens-first-electric-vehicle-battery-gigafactory.139
  140. Ibid.140
  141. M. Gallucci, “US Wind Manufacturing Makes a Comeback Thanks to Inflation Reduction Act”, pv magazine, June 5, 2023, https://www.canarymedia.com/articles/clean-energy-manufacturing/us-wind-manufacturing-makes-a-comeback-thanks-to-inflation-reduction-act.141
  142. Ibid.142
  143. IEA, op. cit. note 82.143
  144. Based on IEA, op. cit. note 54.144
  145. Ibid.145
  146. Ibid.146
  147. Ibid.147
  148. Ibid.148
  149. REN21, op. cit. note 55. 149
  150. IRENA, “Renewable Capacity Statistics 2023”, 2023, https://www.irena.org/Publications/2023/Mar/Renewable-capacity-statistics-2023.150
  151. Ibid.151
  152. IRENA and SELCO Foundation, “Fostering Livelihoods with Decentralised Renewable Energy: An Ecosystems Approach”, 2022, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Jan/IRENA_Livelihood_Decentralised_Renewables_2022.pdf.152
  153. IRENA, “Off-grid Renewable Energy Statistics 2022”, 2022, https://www.irena.org/Publications/2022/Dec/Off-grid-renewable-energy-statistics-2022.153
  154. ESMAP, op. cit. note 91. Snapshot: Africa based on the following sources: United Nations Development Programme (UNDP), “Africa Minigrids Program”, 2022, https://www.undp.org/sites/g/files/zskgke326/files/2022-09/AMP-brochure-july-22-EN_0.pdf; UNDP, “Somalia Launches Ambitious Solar Minigrids Program to Increase Energy Access”, 2023, https://www.undp.org/energy/press-releases/somalia-launches-ambitious-solar-minigrids-program-increase-energy-access; UNDP, “Africa Minigrids Program”, 2022, https://www.undp.org/sites/g/files/zskgke326/files/2022-09/AMP-brochure-july-22-EN_0.pdf.154
  155. ESMAP, op. cit. note 91.155
  156. Ibid.156
  157. Ibid.157
  158. Ibid.158
  159. Ibid.159
  160. Ibid.160
  161. Based on IEA, op. cit. note 54. 161
  162. GOGLA, op. cit. note 58.162
  163. Ibid. 163
  164. Ibid. 164
  165. Based on IEA, op. cit. note 54.165
  166. Based on IEA, “Africa Energy Outlook 2022”, https://www.iea.org/reports/africa-energy-outlook-2022. 166
  167. Based on IEA, “World Energy Outlook 2021”, https://www.iea.org/reports/world-energy-outlook-2021. 167
  168. Energy Planets, “Clean Cooking Hits Record $200m Investment in 2022”, March 17, 2023, https://www.energyplanets.org/clean-cooking-hits-record-200m-investment-in-2022.168
  169. Clean Cooking Alliance, “2022 Clean Cooking Industry Snapshot”, 2023, https://cleancooking.org/wp-content/uploads/2022/05/CCA-2022-Clean-Cooking-Industry-Snapshot.pdf.169
  170. Ibid.170
  171. Ibid.171
  172. Clean Cooking Alliance, “Clean Cooking Alliance Adds Five Companies to its Venture Catalyst Program”, May 2022, https://cleancooking.org/news/clean-cooking-alliance-adds-five-companies-to-its-venture-catalyst-program.172
  173. NEFCO, “Modern Clean Cooking Facility for Africa”, https://www.nefco.int/call-for-proposals-for-modern-cooking-facility-for-africa, accessed May 2023.173
  174. Modern Cooking Facility for Africa, “What's the Future of Clean Cooking? Driving Sustainable Fuels and Innovative Business Models”, May 18, 2022, https://www.moderncooking.africa/2022/05/18/future-clean-cooking-sustainable-fuels-and-business.174
  175. Ibid. 175
  176. Ibid.176
  177. Ibid.; Inclusive Energy, “Who's Counting, Exploring If Data Pays in Biogas Carbon Projects”, 2023, https://static1.squarespace.com/static/6380a6194d1af74b3422b87f/t/642c0bff1afe2d5d297daf1a/1680608267909/230404+Who%27s+Counting_Web1.2.pdf.177
  178. Clean Cooking Alliance, op. cit. note 169.178
  179. Ibid.179
  180. ESMAP, “The State of Access to Modern Energy Cooking Services”, 2020, https://cleancooking.org/wp-content/uploads/2021/07/598-1.pdf.180
  181. IEA et al., op. cit note 10.181
  182. IRENA, “Renewable Energy Market Analysis, Africa and Its Regions”, 2022, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2022/Jan/IRENA_Market_Africa_2022.pdf.182
  183. Sistema, “Sistema.bio Closes Over $15MM in Financing to Scale Climate-smart Clean Energy Technology for Farmers”, 2022, https://sistema.bio/blog/2022-investment-press-release.183
  184. Ibid. 184
  185. Ibid. 185
  186. SNV, “Household Bio-digester Installations in Selected Countries in Africa and Asia in 2021”, 2022, https://a.storyblok.com/f/191310/b8ca144d18/snv-20biodigester-20status-20brief-20-28final-29.pdf.186
  187. Ibid. 187
  188. Africa Energy Portal, “Rwanda: Koko Networks to Invest $25m for Ecological Cooking”, April 4, 2022, https://africa-energy-portal.org/news/rwanda-koko-networks-invest-25m-ecological-cooking.188
  189. Koko, “Rwanda Signs Agreement with Koko”, 2022, https://rdb.rw/rwanda-signs-agreement-with-koko-to-establish-25-million-renewable-cooking-fuel-utility.189