During a panel discussion at the International Renewable Energy Agency's (IRENA) 14th Assembly, Jose Manuel Entrecanales, the Chief Executive of Acciona, voiced apprehension over the United States and the European Union's combined contribution of just 20% to the world's new renewable energy capacity in 2023.
Entrecanales remarked, “It is worrying that the US, Europe, and other advanced economies only installed 20% of the world's new renewable energy capacity in 2023,” underscoring the disparity between their share of global Gross Domestic Product (GDP), which exceeds 50%.
Highlighting the dominance of China in renewable energy deployment, Entrecanales noted that China produced 70% of the world's installed capacity last year, despite representing only 17% of global GDP. He emphasized that the main challenge lies in enhancing the risk-reward equation to attract private capital, a key driver for renewable energy development.
“We tend to forget that the overwhelming element that moves private capital is the risk-reward equation,” Entrecanales emphasized, urging for improvements to match China's success in the industry.
The panel discussion, held in Abu Dhabi, also featured insights from industry leaders such as EDF Chief Executive Luc Remont, Chair of the Global Renewables Alliance Julia Souder, Vice-President of Jinko Solar Global Dany Qian, and Sosai Energies Chief Executive Habiba Ali.
Entrecanales highlighted various challenges hindering renewable energy development across regions. He cited regulatory, transmission, network, and pricing issues in Europe, scale and financing challenges in Africa, and political obstacles in Latin America. However, he commended the US for its efforts in addressing inflation through the Inflation Reduction Act (IRA).
