Renewable energy is produced by using renewable natural resources like wind and sunlight. Some of the main renewable energy sources are solar, geothermal, wind, bioenergy, hydropower, and ocean power. Around 7% of the world’s energy needs are met by renewable energy sources. Renewable energy is generally more expensive compared to traditional fossil fuels.
In 2020 , the global renewable energy market value was estimated around $882 billion in 2020. It is projected to reach $1,977.6 billion by 2030. The renewable energy market has been negatively impacted due to the wake of COVID-19 pandemic. The pandemic severely impacted the wind turbine manufacturing in countries such as China and Germany. In 2020, Germany’s Nordex SE reported negative EBITDA of $86.5 million down from positive EBITDA of $21 million in previous financial year (2019). Siemens Gamesa Renewable Energy SA accounted for a net loss of $577 million during its fiscal third quarter in 2020. https://www.alliedmarketresearch.com/renewable-energy-market.
The US renewable energy sector’s growth slowed in 2022 as a result of supply chain disruption, unclear trade policies, inflation, rising interest rates, and connectivity delays. As per report published by Deloitte for 2023 suggests that many of these challenges will likely carry over into 2023. But growth will likely accelerate by robust demand and the record-breaking raft of the clean energy incentives in the Inflation Reduction Act (IRA). This report also lists some strong drivers for renewable growth in 2023.
Strong drivers in 2023
- Cost competitiveness factor. Wind and solar will probably continue to be the cheapest energy sources in most places compared to the conventional fuel.
- Federal clean energy policies update. The IRA extends technology-neutral tax credits through at least 2032. IRA also extends tax benefits for solar & wind energy projects that start construction before 2025. According to projections, the bill would result in 525–550 GW of new clean utility-scale electricity in the US by 2030.
- State clean energy policies. 21 states and the District of Columbia are aiming towards carbon-free power or 100% renewable energy by the year 2050, frequently through mandates and incentives for clean and renewable energy.
- Utility decarbonization. 43 of the 45 largest investor-owned utilities in the US have made pledges to reduce their carbon emissions as of October 2022. Increasing renewable energy is one of their primary tactics for fulfilling those obligations.
- Residential solar demand across the globe is growing faster than ever.
- Private investment in renewables have been increasing in the past and attained a record high of $10 billion in the past year.