The Evolution of Global Renewable Energy Capacity (2000-2023)

Since 2000, global renewable energy capacity has surged by an impressive 415%, equating to a compound annual growth rate (CAGR) of 7.4%.

However, many affluent regions, including the United States and Europe, have shown slower average annual growth in renewable energy capacity.

This visualization, created by the Visual Capitalist team in collaboration with the National Public Utilities Council, illustrates how various world regions have contributed to the expansion of renewable energy capacity from 2000 to 2023, based on the latest data from the International Renewable Energy Agency (IRENA).

Renewable Energy Trends in Advanced Economies

From 2000 to 2023, the global renewable energy capacity jumped from 0.8 to 3.9 terawatts (TW). China spearheaded this growth, adding 1.4 TW—more than the combined contributions of Africa, Europe, and North America. This renewable energy encompasses solar, wind, hydro (excluding pumped storage), bioenergy, geothermal, and marine energy.

During this period, the United States experienced slightly faster growth in renewable capacity compared to Europe, but it lagged significantly behind China. The recent implementation of the Inflation Reduction Act is expected to boost the U.S. renewable growth rate in the coming years.

Overall, Asia, with China at the forefront, has demonstrated the most significant regional growth.

Renewable Energy Advancements in Emerging Economies

Africa has seen a 184% increase in renewable energy capacity since 2000, achieving a CAGR of 4%.

India, now the world's most populous country, has also experienced rapid growth in renewable energy capacity, with an increase of 604% from 2000 to 2023, corresponding to a CAGR of 8%.

It's important to note that energy capacity does not always translate directly to power generation, particularly for intermittent energy sources like solar and wind, which depend on natural conditions.

Despite the widespread growth in renewable energy, IRENA stresses that global renewable generation capacity needs to triple from its 2023 levels by 2030 to meet the ambitious goals of the Paris Agreement.

Noteworthy Facts About Renewable Energy Growth

• Solar Power Boom: Solar energy has become the fastest-growing renewable energy source globally, with capacity increasing by an average of 25% annually over the past decade.
• Wind Energy Expansion: Wind power capacity has doubled in the last decade, with offshore wind farms playing a significant role in this growth, especially in Europe and China.
• Hydropower Dominance: Despite the rapid growth of solar and wind, hydropower remains the largest source of renewable electricity, accounting for about 60% of the global renewable energy capacity.
• Bioenergy and Geothermal Growth: While not as fast-growing as solar or wind, bioenergy and geothermal energy have steadily increased their share in the renewable energy mix, contributing significantly to the diversification of renewable sources.
• Global Investment: Investment in renewable energy has soared, reaching record levels in recent years. In 2022 alone, global investments in renewable energy amounted to over $300 billion, reflecting the growing commitment to transitioning to a sustainable energy future.
• Technological Advancements: Advances in technology, such as more efficient solar panels and wind turbines, as well as innovations in energy storage, have significantly reduced the cost of renewable energy, making it more competitive with traditional fossil fuels.

By understanding these trends and facts, we can better appreciate the strides made in renewable energy over the past two decades and recognize the challenges that lie ahead in meeting global climate targets.