Around 60 GW of solar and wind power capacity is set to be brought online in the EU this year, contributing to achieving some EUR 100 billion (USD 106.9bn) in savings since the beginning of the energy crisis in 2021.
The new deployments will further reduce the bloc’s dependence on Russia and boost fossil fuel displacement to almost 20%, the International Energy Agency (IEA) said in its latest report on Thursday.
The fresh capacity will add to some 90 GW of wind and photovoltaic (PV) parks that were commissioned in 2021-2022 and helped to displace almost 10% of hard coal and natural gas generation. Over the 2021-2023 period, solar and wind energy is set to displace an estimated 230 TWh of expensive fossil fuel generation.
According to a modelled scenario by IEA, without the renewable energy capacity installed in 2021-2023, the average wholesale electricity prices in the EU would have been 3% higher in 2021 and 8% higher in 2022, while the percentage ticks to 15% for 2023.
Still, an accelerated case forecast shows savings could have been about 15% higher if capacity had been installed at a faster pace, under quicker policy implementation, IEA noted.
On a global level, IEA forecasts that renewable energy deployment will rise by a record 107 GW to 440 GW in 2023. The supportive policies, along with improved auction mechanisms, increased fossil fuel prices, and energy security concerns are the major drivers for the market boom. By 2024, wind and solar alone are anticipated to make up more than 40% of annual electricity generation in several countries in Europe, including Spain, Germany and Ireland.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.