Solar and wind power costs have been declining rapidly. During the decade to 2020, the cost of wind and solar power fell by 55% and 85%, respectively. The cost of batteries, increasingly used to store renewable electricity, also fell by 85% over the same time period. Contact online >>
Solar and wind power costs have been declining rapidly. During the decade to 2020, the cost of wind and solar power fell by 55% and 85%, respectively. The cost of batteries, increasingly used to store renewable electricity, also fell by 85% over the same time period.
Solar is leading the energy revolution. It has been the fastest-growing source of electricity generation for nineteen years running. Solar added more than twice as much new electricity as coal in 2023.
Clean electricity accounted for around 80% of new capacity additions to the world''s electricity system in 2023, and electric vehicles for around one out of five cars sold globally. At the same time, global investment in clean energy manufacturing is booming, driven by industrial policies and market demand. Employment in clean energy jobs exceeded that of fossil fuels in 2021 and continues to grow.
Our new country-by-country and sector-by-sector analysis finds that in 2023, clean energy added around USD 320 billion to the world economy. This represented 10% of global GDP growth – equivalent to more than the value added by the global aerospace industry in 2023, or to addingan economy the size of the Czech Republic to global output.
It is based on detailed project-by-project data gathered and processed by the International Energy Agency (IEA) from primary and secondary sources. We conducted this analysis at the country level, and present here the in-depth results for four of the largest economies: the United States, the European Union, China and India, which together account for two-thirds of global GDP.1
GDP in the United States grew by a robust 2.5% in 2023. Clean energy was an important contributor: The Inflation Reduction Act and the Bipartisan Infrastructure Law drove a surge in investment in clean energy manufacturing, and sales of EVs also grew strongly. Consequently, clean energy growth accounted for around 6% of GDP growth in the world''s largest economy in 2023. This is comparable in scale to the contribution to GDP growth in 2023 from the United States'' booming, artificial-intelligence-driven digital economy.2
In the European Union, clean energy accounted for nearly one-third of GDP growth in 2023, the highest share of any region assessed, although its share is inflated by weak overall GDP growth of around 0.5%. Nonetheless, the EU''s strong climate targets and policies, such as the Fit for 55 package and the proposed Net Zero Industry Act, are supporting investments in clean energy manufacturing, which more than doubled between 2022 and 2023, driven in particular by battery manufacturing.
India was the fastest growing large economy in 2023, with GDP increasing by around 7.7%. Clean energy contributed slightly less than 5% of GDP growth in 2023, predominantly from investment in new solar power capacity. Meanwhile, policies such as the Production Linked Incentive are attracting investment in new clean energy manufacturing capacity. In 2023, this remained relatively small as a portion of India''s overall economy, but interest from businesses and investors is increasing.
The clean energy sector also drove a substantial share of total investment growth across the economy in these regions in 2023. In the case of China, it contributed 50% of the growth in total investment in 2023, and 20% in the United States. At the global level, we estimate that around USD 200 billion was invested in clean energy technology manufacturing in 2023, an increase of 75% over the previous year. This compares with global capital investment in semiconductor manufacturing of around USD 170 billion to 250 billion per year in recent years.
This analysis highlights the scale and weight of the clean energy economy. It shows that it is not only growing quickly, but also has already become a powerful economic force. As energy transitions advance, clean energy''s importance for economies around the world is only set to grow further.
About Avaru clean electricity
As the photovoltaic (PV) industry continues to evolve, advancements in Avaru clean electricity have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
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By interacting with our online customer service, you'll gain a deep understanding of the various Avaru clean electricity featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
