RENEWABLES 2024
GLOBAL STATUS REPORT

Renewables in Energy Demand

2024

Investment and Finance

Data on investment in renewables specifically for the buildings sector remain limited, both for power and for heat. Global investment in solar thermal heating i totalled an estimated USD 19.1 billion in 2021. 66 More than two-thirds of this occurred in China (around 69%, or roughly USD 13.2 billion), followed by Europe (11.6%, or roughly USD 2.3 billion). 67

Investments in energy efficiency in buildings ii rose 14% in 2022 to reach USD 285 billion, 68 though preliminary indications suggest that growth will slow in 2023 due to inflation in project costs and to rising interest rates. 69 The increased spending was the result of policy-driven investment in the United States as well as a continued effort, led by Europe, to respond to the energy crisis triggered by the Russian invasion of Ukraine. 70

Europe led energy efficiency investments in 2022, with increased spending in Germany (USD 51 billion) and Italy (USD 57 billion); however, other countries in the region (such as France and the United Kingdom) experienced declines due to slowdowns in the construction sector. 71 Spending in the United States, which ranked second globally in energy efficiency investment, exceeded USD 33 billion in 2022, supported mainly through public funding from Department of Energy efficiency programmes (such as federal EnergySTAR residential tax credits) coupled with utility demand-side management. 72 In China, investment in real estate development fell 10% in 2022, impacting energy efficiency investment in the country. 73

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Footnotes

i Solar thermal heating investment numbers are calculated based on the collector areas/systems installed in the respective year and on the average costs of the system.

ii Because most energy efficiency investments in buildings are components of larger projects, they are difficult to extract from the overall project cost. Energy efficiency investments lead to a decrease in energy use compared to a baseline and are thereby incremental in nature. A lack of clear definitions, standards and benchmarks for assessing the energy efficiency performance in buildings makes tracking energy efficiency investments challenging. See endnote 72 for this module.

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  92. Snapshot: Hamburg from the following sources: Erneuerbare Energien Hamburg, “Solarpotenzialstudie Für Hamburg. Nicht Nur Schietwetter in Hamburg!” March 2023, https://www.solarzentrum-hamburg.de/site/wp-content/uploads/2023/04/EEHH-Solarpotenzialstudie.pdf; German Federal Government, “Development of Renewable Energies”, 23 December 2022, https://www.bundesregierung.de/breg-de/schwerpunkte/klimaschutz/amendment-of-the-renewables-act-2060448; Hamburg News, “Two-Thirds of Demand for Electricity Could Be Met by Solar Energy”, 4 May 2023, https://hamburg-business.com/en/news/two-thirds-demand-electricity-could-be-met-solar-energy; Free and Hanseatic City of Hamburg, “Klimaschutzgesetz”, 1 January 2024, https://www.hamburg.de/klimaschutzgesetz; Free and Hanseatic City of Hamburg, “Solar Energy”, 2024, https://www.hamburg.com/energy-supply/17042818/solar-energy; Free and Hanseatic City of Hamburg, “Photovoltaik-Pflicht: Hamburg nutzt Solarenergie”, 2024, https://www.hamburg.de/klimaschutzgesetz/17318142/photovoltaik-pflicht; German Federal Government, “Mehr Solarstrom, weniger Bürokratie”, 26 April 2024, https://www.bundesregierung.de/breg-de/aktuelles/solarpaket-photovoltaik-balkonkraftwerke-2213726; Federal Ministry for Economic Affairs and Climate (BMWK), “Renewable Energy”, 2024, https://www.bmwk.de/Redaktion/EN/Dossier/renewable-energy.html; Solarwissen Selfmade Energy, “Solar-Städteranking 2022: (Fast) alle Städte errichten mehr PV-Anlagen”, accessed 10 May 2024, https://solarwissen.selfmade-energy.com/deutschland-ranking-solar-2022.92
  93. International Energy Agency Photovoltaic Power System Programme, “Enabling Framework for the Development of BIPV”, accessed 6 May 2024, https://iea-pvps.org/research-tasks/enabling-framework-for-the-development-of-bipv; Becquerel Institute, “BIPV Status Report 2020”, 2020, https://solarchitecture.ch/wp-content/uploads/2020/11/201022_BIPV_web_V01.pdf; ICLEI–Local Governments for Sustainability, “Urban Wind Power”, 2020, https://renewablesroadmap.iclei.org/wp-content/uploads/2021/11/Urban-Wind-Power_final-1.pdf.93
  94. International Energy Agency, “Renewables 2023”, 2023, https://iea.blob.core.windows.net/assets/96d66a8b-d502-476b-ba94-54ffda84cf72/Renewables_2023.pdf. 94
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  96. International Energy Agency, World Energy Statistics Database, 2023, www.iea.org/statistics, all rights reserved, as modified by the Renewable Energy Policy Network for the 21st Century (REN21). 96
  97. International Energy Agency, “Solar Thermal Technologies Deployed in Around 400 Million Dwellings by 2030”, 2022, https://www.iea.org/reports/solar-thermal-technologies-deployed-in-around-400-million-dwellings-by-2030. 97
  98. International Energy Agency Solar Heating and Cooling Programme, “Solar Heat for Cities, Towns and Energy Communities”, accessed 17 November 2023, http://task68.iea-shc.org/Data/Sites/1/publications/Solar-District-Heating-Info-Package-of-IEA-SHC-Task-68.pdf. 98
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  105. Werner Weiss and Monika Spörk-Dür, “Solar Heat Worldwide Edition 2023”, International Energy Agency Solar Heating and Cooling Programme, 2023, https://www.iea-shc.org/Data/Sites/1/publications/Solar-Heat-Worldwide-2023.pdf. 105
  106. International Energy Agency Solar Heating and Cooling Programme, “Mixed Solar Thermal Market Development in 2022”, 14 June 2023, https://www.iea-shc.org/Data/Sites/1/media/documents/press/2023-06-14--solar-heat-worldwide-press-release.pdf; Bärbel Epp, “New Milestones on the German Solar District Heating Market”, Solar Thermal World, 19 December 2023, https://solarthermalworld.org/news/new-milestones-on-the-german-solar-district-heating-market. 106
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  108. Bärbel Epp, “37 MW Solar District Heating Plant in the Netherlands with Outstanding Features”, Solar Thermal World, 11 November 2022, https://solarthermalworld.org/news/37-mw-solar-district-heating-plant-in-the-netherlands-with-outstanding-features. 108
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  110. ASHRAE, “Solar-Assisted Air Conditioning: What Engineers Need to Know”, ASHRAE Journal Newsletter, 8 September 2020, https://www.ashrae.org/news/ashraejournal/solar-assisted-air-conditioning-what-engineers-need-to-know .110
  111. Meticulous Market Research Pvt Ltd, “Southeast Asia Air Conditioners Market to Be Worth $8.66 Billion by 2030”, GlobeNewswire News Room, 28 August 2023, https://www.globenewswire.com/en/news-release/2023/08/28/2732630/0/en/Southeast-Asia-Air-Conditioners-Market-to-be-Worth-8-66-Billion-by-2030-Exclusive-Report-by-Meticulous-Research.html. 111
  112. United Nations Environment Programme, “Cambodia Sets Example for Climate Action in the Cooling Sector”, 3 September 2023, http://www.unep.org/technical-highlight/cambodia-sets-example-climate-action-cooling-sector; United Nations Economic and Social Commission for Asia and the Pacific, “Cambodia Announces Its National Cooling Action Plan”, 17 November 2022, https://www.unescap.org/news/cambodia-announces-its-national-cooling-action-plan. 112
  113. Government of South Africa, “South Africa National Cooling Plan (NCP)”, 2023, https://eta-publications.lbl.gov/sites/default/files/sa_ncp_full_report_2023.pdf.113
  114. Fortune Business Insights, “District Cooling Market Size [2023-2030] Worth $44.46 Billion”, GlobeNewswire News Room, 17 October 2023, https://www.globenewswire.com/en/news-release/2023/10/17/2761170/0/en/District-Cooling-Market-Size-2023-2030-worth-44-46-Billion-Growing-Demand-for-Sustainable-and-Energy-Efficient-Cooling-Solutions-and-Rising-Installation-of-DC-Technology-to-Expedit.html. 114
  115. Snapshot: Africa from the following sources: Ayat Soliman and Saroj Kumar Jha, “Closing the Access Gap for Water and Sanitation in Eastern and Southern Africa: Raising the Ambition”, World Bank, 27 March 2023, https://blogs.worldbank.org/en/water/closing-access-gap-water-and-sanitation-eastern-and-southern-africa-raising-ambition; World Health Organization, “Electricity in Health-Care Facilities”, 31 August 2023, https://www.who.int/news-room/fact-sheets/detail/electricity-in-health-care-facilities; Sustainable Energy for All, “1 in 7 People Globally Currently at High Risk Due to Lack of Access to Cooling”, 17 May 2022, https://www.seforall.org/press-releases/1-in-7-people-globally-currently-at-high-risk-due-to-lack-of-access-to-cooling; International Energy Agency, “Africa Energy Outlook 2022”, 2022, https://www.iea.org/reports/africa-energy-outlook-2022; SophiA, “Sustainable Off-Grid Solutions for Pharmacies and Hospitals in Africa”, 21 March 2024, https://sophia4africa.eu; SophiA, “SophiA Solar Cooling Container”, accessed May 2024, https://sophia4africa.eu/sophia-solar-cooling; SophiA, “SophiA Solar Water Container”, accessed May 2024, https://sophia4africa.eu/sophia-solar-water-container; GEA, “What Are Natural Refrigerants?” accessed May 2024, https://www.gea.com/en/campaigns/natural-refrigerants/natural-refrigerants-climate-neutral; Institute for Energy Research, “Environmental Impacts of Lithium-Ion Batteries”, Institute for Energy Research, 11 May 2023, https://www.instituteforenergyresearch.org/renewable/environmental-impacts-of-lithium-ion-batteries; Oliver Schmid, Hochschule Karlsruhe, personal communication with REN21, 16 April 2024; SophiA, “Solar Technologies”, accessed April 2024, https://sophia4africa.eu/solar-technologies.115