A new report shows the highest global trend in this direction of sustainable energy, such as renewable energy investments increasing to 29%, or jump from $2.4 trillion in 2018, to an estimated $3.1 trillion in 2024, from a study presented by the Ministry of New and Renewable Energy of India is increasingly shifting away from the fuel of fossil, giving the world a greater commitment to renewable energy.
According to the report, solar power still holds the top position in investments in renewable energy, accounting for 59% of the total investment in renewables, primarily because of the decrease in the cost of solar technology. The APAC region has emerged as the largest contributor to these investments, reflecting significant regional strides towards clean energy adoption and energy security.
To begin with, today during the ongoing ISA Assembly, three other reports besides the main report have been presented: World Solar Market Report, World Technology Report, and Green Hydrogen Readiness Assessment for African Countries. The reports were launched in New Delhi by MNRE Minister and International Solar Alliance (ISA) President Pralhad Joshi today.
Key Findings of the Renewable Energy Investment Growth Report
Renewable energy investment is projected to increase to US$3.1 trillion by 2024, which is a near 30% increase from 2018. This indicates a significant shift in the global energy markets toward sustainability. The projection shows investment in clean energy as an effort to counter the effects of climate change in the light of increasing global demand for energy.
According to MNRE, most growth is going to be driven by the solar sector, primarily because of the declines in the cost of technology and its production. This development has made solar power the most accessible and fast-to-scale form of renewable energy. It further reveals the way and geographical change to renewable energy in the APAC region, as China and India have been urbanized and industrialized at a very rapid pace; hence, it has become a need to switch to sustainable energy resources.
World Solar Market Report: Global Solar Capacity Expands
Along with the key investment report, the World Solar Market Report shows a boom in solar power. From 1.22 GW in the year 2000, the global solar capacity has reached around 1,418.97 GW by 2023. Even the manufacturing capacity of solar is going to surpass demand soon, and that will push the prices of solar even lower and increase its access all over the world.
These strides have greatly contributed to jobs, as currently, the global workforce directly employed by the solar sector is approximately 7.1 million. The document projects that by 2030, total global solar power generating capacity might hit 7,203 GW, citing solar as the backbone element of the clean energy shift.
Solar Energy Technological Advancements
Several breakthroughs within the field of solar technology mark the World Technology Report, which was also unveiled during the ISA. These mark the solar improvements that have made solar energy at once both efficient and inexpensive. “Solar improvements are said to have made panels significantly more efficient than their previous models,” reports show. In the process, recent enhancements of these solar panels lowered the cost of solar generation to be feasible in numerous projects.
These are breakthroughs in a time when the negative impact of conventional sources of energy on the environment and an urgency to use low-carbon alternatives have become of immense concern. Through the integration of efficiency, sustainability, and cost-effectiveness, these technological breakouts have helped fuel global adoption of solar power with various countries worldwide seeking to implement solar as the core of renewable energy in their plans.
Green Hydrogen: A Clean Alternative Fuel for Africa
In addition to solar market insights, the ISA Assembly highlighted the role of green hydrogen in decarbonizing industries that are currently based on fossil resources, such as steel production and fertilizer manufacturing. The new publication Readiness Assessment of Green Hydrogen for African Countries outlines how green hydrogen produced through renewable-powered electrolysis can support Africa’s transition towards a more environmentally friendly energy future.
Africa’s energy landscape remains primarily coal-based, oil-based, and gas-based. Current regional greenhouse gas emissions, mainly from the industrial sectors, can be decarbonized using green hydrogen, which would supply a secure, sustainable energy source for the continent. The report presents a strong case for strategic investment in green hydrogen technology and infrastructure to unlock the potential of this source of energy across Africa and put it on the roadmap towards long-term energy security and climate resilience.
Global Renewable Energy Expansion and Economic Growth
According to MNRE and ISA insights, renewable energy is one of the biggest growth industries now and has a lot to be benefited in terms of the economic, environmental, as well as social front. Hence, investments in renewable energies have now become recognized for achieving the climate change mitigation and adaptation targets globally not just as a means toward enhancing economic growth and thereby boosting employment opportunities, very significant in developing economies as well.
In particular, the solar and green hydrogen sectors are generating ripples among investors and policymakers, as both have already proven they can power major large-scale decarbonization and economic resilience. With global renewable investment slated for growth in the near term, the renewable energy aspirations of the world’s countries will likely rise, pushing sustainable energy to be one of the fastest-growing industries across the globe.
Future Challenges and Opportunities in Clean Energy Investment
This would be complemented by several challenges the renewable energy sector faces, such as infrastructure investment, grid modernization, and sustainable supply chains for critical minerals in solar and battery production. Therefore, it will require coordinated efforts from governments, private investors, and industry leaders to address such challenges, build supportive regulatory frameworks, and create incentives for clean energy adoption.
All such reports, if addressed can unleash big avenues toward significant environmental benefits and economic gain for their respective countries. Further thrust on renewable technology and also building co-operation across boundaries in any form of energy challenge will help these countries fulfill set climate goals and eventually, they will also become the sustainable economy capable of sustainable development for generations to come.
Source: MNRE (New and Renewable Energy, 2016) International Solar Alliance, 2019