Roohi Bali Blog
Renewable energy is poised for significant growth and transformation in 2024. As we move toward a more sustainable and decarbonized future, several key trends and developments are shaping the renewable energy landscape. Let’s explore what lies ahead:
Renewable Deployment
The Energy Information Administration (EIA) expects renewable deployment to grow by 17% to 42 GW in 2024, accounting for almost a quarter of electricity generation1. This growth is driven by federal investments and increasing demand for clean energy. Solar and wind power will play a crucial role in achieving these targets.
Solar Power Brightens
Utility-scale solar capacity additions in the United States outpaced other generation sources between January and August 2023, reaching almost 9 gigawatts (GW)—a 36% increase compared to the same period in 2022. Small-scale solar generation also grew by 20%. By the end of 2023, the US is expected to have a record-breaking 24 GW of utility-scale solar installations. This trend is likely to continue into 2024, making solar electric generation a leading source of growth in the US power sector.
Challenges for Wind Energy
While solar thrives, wind energy faces challenges. Only 2.8 GW of wind capacity came online in the US during the same period in 2023, down 57% from the previous year. Project inputs, labor and capital cost pressures, interconnection delays, and transmission limitations have impacted wind projects. However, federal investments and climate laws are expected to boost wind capacity by 8 GW in 2024.
Cost Trends
Renewable costs experienced a temporary rise due to factors like high financing, balance of plant, labor, and land costs. However, the Investment Tax Credits (ITC) and Production Tax Credits (PTC) have made utility-scale solar and onshore wind competitive with existing conventional generation. Projects claiming maximum available credits could achieve the world’s lowest solar and wind levelized costs of energy (LCOEs).
Resilience and Decarbonization
The push for decarbonization, combined with federal investments, is reshaping the renewable energy landscape. Renewables are increasingly seen as a resilience strategy, and the workforce is being reskilled to meet the demands of the industry. As we move into 2024, renewables are set for a variable-speed takeoff across technologies, industries, and markets.
In summary, the future of renewable energy in 2024 is promising. Solar power will continue to shine, wind energy will overcome challenges, and federal support will drive deployment. As we transition toward a cleaner energy future, renewables will play a pivotal role in meeting climate targets and ensuring a sustainable planet.
#RoohiBali (Co-Founder, SCORR Ltd)
