Market and Industry Trends Despite high interest rates, inflation, and supply chain disruptions, the renewable energy sector saw another record year of capacity additions. 1.6 TW of total solar PV installed capacity in 2023, surpassing hydropower for the first time 82 % of global renewable power additions in China, Europe and United States in 2023 134 countries were benefiting from solar thermal systems as of 2023 Technologies Key Facts Bioenergy Jump to section Bioenergy accounted for 12.1% of the world's total final energy consumption in 2021, totalling 45.9 exajoules (EJ). Modern bioenergy produced 1.3 EJ of derived heat in 2021, with solid biomass accounting for over half of the production. Biofuels achieved a new record high in 2022 as production reached 170 billion litres (4.3 EJ), with ethanol representing nearly two-thirds of the total biofuel production. Global biogas and biomethane production exceeded 1.6 EJ in 2022, and nearly half of this production was in Europe. Key Facts Concentrating Solar Thermal Power (CSP) Jump to section The world's largest CSP plant, Noor Energy 1 in the United Arab Emirates, added 400 MW in 2023, bringing the total global CSP installed capacity to 6.7 GW. China had 40 new CSP projects under various stages of construction and commissioning as of the end of 2023. High-temperature third-generation CSP is entering the scene, with several pilot stations under construction. Key Facts Geothermal Power and Heat Jump to section New geothermal power generating capacity of 0.1 GW came online in 2023, bringing the global total to around 14.8 GW, marking the second year of decline in new installations. Capacity was added in Indonesia, Japan, Kenya, the United States, and Taiwan, but not all locations saw a net increase in operational capacity. Geothermal direct-use (which does not include heat pumps) reached an estimated 205 TWh (737 PJ) in 2023, around one-third higher than the previous year's estimate (155 TWh). China is the world's fastest-growing geothermal heat market. Key Facts Heat Pumps Jump to section Heat pumps are considerably more efficient than conventional technologies, providing 3-4 units of heat per unit of electricity, especially when driven by renewable energy. The market remains strong, despite a slight slowdown in key regions. China remains the largest heat pump market, with 12% growth in 2023. Sales in Germany and Belgium increased 60% and 72% respectively. Heat pumps have proven popular with residential consumers. Industrial applications and networked systems are under development. Key Facts Hydropower Jump to section The global conventional hydropower market reached 1,237 GW of cumulative capacity in 2023, up 7.2 GW from 2022. Droughts in top hydroelectricity generating countries led to a 5% decrease in production in 2023 and a global net capacity factor of 39%. China maintained 30% of the global hydropower capacity in 2023 and faced extreme drought conditions in top producing provinces, which caused historic lows in production at the beginning of the year. More than half of installed capacity in 2023 was in Asia. Globally, the three largest additions occurred in Nigeria (740 MW), Colombia (643 MW) and Lao PDR (548 MW). Key Facts Ocean Power Jump to section Ocean power has immense global potential and is moving towards commercial deployment. A total of 2 MW of ocean power capacity was installed in 2023. Tidal stream and wave power are the key development areas: since 2010, deployments have totalled 41 MW and 27 MW respectively. Public funding for ocean energy deploymentsin Europe surged to an unprecedented USD 215 million in 2023. Private investment in ocean energy saw a significant 75% increase in officially announced deals. Key Facts Solar Photovoltaics (PV) Jump to section At least 407 GWDC of solar PV capacity came online worldwide in 2023, bringing the total installed capacity to 1.6 TW; this was a record increase driven by low manufacturing costs, increased consumer demand and policy-driven incentives. China installed at least 235 GW of solar PV in 2023, 58% of the global total solar PV, followed by the US and India. Centralised solar PV made up at least 55% of the total additions, while distributed solar PV comprised the remaining 180 GW. Key Facts Solar Thermal Heating Jump to section The global market for solar thermal collectors contracted 7.2% in 2023, to reach a newly installed capacity of 21 GWth . Small-scale systems have lost market share in several regions, but demand for large-scale projects has risenin recent years. Globally, 337 large-scale solar thermal district heating systems, with total capacity exceeding 1.9 GWth, were operating by the end of 2023. In 2023, 116 solar industrial heat plants (SHIP) began operation, bringing the global total to at least 1,209 installations supplying process heat. Solar thermal heating technologies continued to face market competition due to a lack of awareness and an imbalance in incentives. Key Facts Wind Power Jump to section A record 117 GW of wind power capacity was added to the world's grids in 2023, increasing the total in operation more than 12.8% to an estimated 1,021 GW. The top markets for newly installed grid-connected capacity in 2023 were China, followed distantly by the United States, Brazil, Germany and India. Despite the cost-competitiveness of wind energy and ambitious targets in countries around the world, numerous obstacles continued to impede the wind industry. The industry continued to innovate, particularly in the offshore sector. The European Union took steps to accelerate installations and strengthen the competitiveness of the region's turbine manufacturing industry. Investment and Finance Bioenergy Footnotes