Solar and wind energy continue to spread rapidly across the globe. In 2023, installations of solar and wind energy accounted for 80% of the total added capacity. As these renewable sources increasingly contribute to electricity production, they are on track to surpass nuclear energy.
Rapid Growth of Solar and Wind Energy
Over the past decade, global solar energy production has increased ninefold, reaching 1,500 TWh per year, while wind energy production has tripled to 2,300 TWh annually. With compound annual growth rates of 22% for solar and 11% for wind, these sources are outpacing all other electricity generation methods. In contrast, production from hydroelectric, nuclear, and coal plants has grown by approximately 1% per year, while natural gas has seen a 3% annual growth rate.
The 22% annual growth rate for solar energy means that production doubles every three years. At this pace, solar energy production could reach 100,000 TWh annually by 2042, sufficient to fully decarbonize the global economy.
Capacity Factors and Future Projections
When considering the capacity factor, which measures the actual output of a power plant compared to its maximum potential output, nuclear plants lead with an average capacity factor of 74%. This is followed by coal (50-70%), natural gas (40-60%), wind (30-60%), and hydroelectric (30-50%). Solar energy has the lowest capacity factor, ranging from 12-25%.
Despite its lower capacity factor, solar energy is projected to surpass nuclear power in electricity generation by 2026, wind by 2027, hydroelectric by 2028, natural gas by 2030, and coal by 2032. Solar and wind are dominating the construction of new power plants, while construction of other types of power generation facilities remains stagnant.
Europe Leading in Solar and Wind Energy
European countries are leading the way in solar and wind energy production per capita. Among these, Australia stands out as an exception due to its significant recent investments in solar energy. In leading countries, the total production from solar and wind energy has exceeded the combined production of hydroelectric and nuclear power by four times.
What do you think about the rapid growth of solar and wind energy? Will these sources continue to dominate the future of electricity generation? Share your thoughts in the comments below!
