Anecdotal in the early 2000s, renewable energies are finally making their mark. Somewhat irritated by the fact that some politicians have failed to grasp this major global transformation, the boss of Engie, Catherine MacGregor, points to an undeniable reality. In 2023, half the electricity produced in Germany came from renewable energies. This was also true for over 60% of electricity in Portugal and over 40% in the UK. The whole world is converting on a massive scale to wind power and, above all, solar power.
The latest report issued by the International Energy Agency (IEA) on Thursday, January 11, mentions this incredible acceleration. Renewable capacity grew by 50% in the year 2023 alone to 510 gigawatts (GW). Three-quarters of this increase comes from solar power. At this pace, within a year, renewable electricity production will overtake that generated by coal. Capacity is set to double in Europe, the US, Brazil and India over the next five years.
Public policy plays a key role. In November 2023, at the latest conference of States, COP28, a target was set to triple global capacity by 2030. However, there are also economic reasons. The price of solar panels fell by 50% in 2023 compared with 2022, according to the IEA. Onshore wind power and solar photovoltaics are now cheaper than new fossil-fuel power plants in most countries. In many cases, they are cheaper than existing power plants.
Yet there are two elephants in the room. The first is China. China is by far introducing the most renewables on its territory out of any country in the world. It is also the world's supplier. It controls 80% of the photovoltaic industry. It's thanks to China and its giant factories that prices are collapsing. The rest of the world is completely dependent on China. It has become essential to achieving the 2030 targets. Closing one's borders to China would mean abandoning climate ambitions.
The other elephant in the room is the global South's commitment to this transition, from Africa to Asia. Without them, we have no chance of meeting our objectives. They will have to be financed at a time when purse strings are tightening and borders are closing. This, too, is no trivial matter.