The November 2024 edition of the Clean Energy Market Monitor by the International Energy Agency (IEA) provides insights into the state of global clean energy development, examining trends in deployment, equipment prices, financial performance of clean energy companies, and CO2 emissions in electricity sectors. This update highlights significant growth in clean energy adoption despite challenges in some sectors and regions.
In the first half of 2024, global solar photovoltaic (PV) capacity expanded rapidly, with installations rising by 36% across major markets like China, the United States, and India. China’s installations alone increased by one-third compared to last year, primarily due to reduced solar module prices, making large-scale projects more viable. The United States saw an 80% rise in solar PV capacity, while India’s additions jumped by 90%. Although growth varied in other regions, Europe saw steady increases, especially in Germany and Italy. Solar PV costs have fallen dramatically since the pandemic, fostering greater adoption for both utility-scale and distributed systems.
Wind power deployment saw mixed results across regions. While China’s growth continued modestly, the United States and Europe faced delays due to regulatory uncertainties and supply chain issues. Emerging markets like India and Brazil maintained stable growth, matching the prior year’s capacity additions.
Electric vehicle (EV) sales also rose significantly, with global sales up by 25%. China maintained its lead, where nearly half of all new cars sold in mid-2024 were electric. Growth in EVs was evident in other regions too, though at slower rates. Europe’s growth was more moderate due to reduced incentives, except in countries like the United Kingdom, which saw stronger sales. Despite a slowdown in some advanced economies, EV sales in emerging markets, including Brazil and Indonesia, grew sharply, with an increase of up to 270% in some cases.
Heat pump adoption was more complex, as global sales declined by 10% in the first half of the year, driven mainly by a sharp drop in Europe due to reduced demand and financial incentives. The United States and Japan showed stability, while China registered modest growth, indicating mixed global interest in heat pumps for energy-efficient heating and cooling.
The report also indicates a notable decrease in clean energy equipment prices. The IEA’s Clean Energy Equipment Price Index shows a 17% decline in Q2 2024 compared to the same period in the previous year, reversing the inflationary pressures that followed the pandemic. Solar PV modules saw the most significant price drop, falling nearly two-thirds from their peak levels, and grid-scale battery prices dropped by about 30%. Wind turbine prices showed more stability, with only a slight decrease over the past year.
On the financial front, the report highlights that clean energy companies face varied profit trends depending on the sector and region. Chinese manufacturers in the EV and battery sectors reported strong profit margins, but the solar PV sector struggled due to excess capacity and intense price competition, resulting in declining profit margins. Outside China, clean energy companies faced challenges from high interest rates and softer demand, affecting profit margins across sectors.
Lastly, the report discusses CO2 emissions in the electricity sector, tracking emissions in near real-time. In countries with available data, emissions fell by over 1% from January to mid-October 2024 compared to the same period last year, despite increased electricity demand due to extreme weather. In the European Union, renewable energy generation reached around 50% of total production, with wind and solar exceeding coal and gas combined for the first time, pushing down emissions by 16% year-over-year. However, in India, emissions rose alongside a 5% increase in electricity demand, though the monsoon season helped moderate demand later in the year.
In summary, the IEA’s Clean Energy Market Monitor reveals ongoing growth in clean energy adoption, with substantial increases in solar PV, EVs, and wind power. However, challenges persist, particularly in cost management and supply chain stability. This data underscores the crucial role of clean energy in reducing global emissions, while also highlighting the importance of economic and regulatory support to maintain momentum.
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