The world is set to witness a substantial increase in solar and wind capacity, alongside significant energy storage growth, between 2024 and 2033, according to Wood Mackenzie's latest outlook.
“Annual wind and solar installations will increase from around 500 GW in 2023 to an average of 560 GW over the 10-year outlook,” Wood Mackenzie stated.
China is expected to maintain its dominant position, installing 3.5 TW across solar, energy storage, and wind during this period.
“Solar deployments are expected to total 3.8 TW, or 4.7 TW DC, with China accounting for 50% of that,” the report highlighted.
Wood Mackenzie's Juan Monge, principal analyst for distributed solar PV, commented, “Ultra-low module prices intensified the rate of solar deployments last year in Europe and China and will continue to do so in the near-term. But grid constraints and a return to lower power prices and subsequently lower capture rates will impact markets and other regions.”
According to the report, global energy storage deployment grew 162% year-on-year in 2023 to 45 GW/100 GWh and is anticipated to reach 159 GW/358 GWh this year. Over the next decade, the market is projected to add 926 GW/2,789 GWh, with China contributing an average of 42 GW/120 GWh annually.
“China's central government announced a plan in May to promote the energy transition and ensure the country meets carbon-neutral targets,” said Lucas Stavole, senior research analyst at Wood Mackenzie. “Project development has been accelerated in the short-term and renewable energy investment will be a long-term economic driver.”
Offshore wind deployment is expected to average 39 GW of connected capacity annually between 2024 and 2033.
