Solar and wind capacity to grow to 8 TW by 2033, energy storage to increase 600 percent, ET EnergyWorld

New Delhi: Global solar and wind capacity is expected to exceed 5.4 terawatts (TWac) of new installations by 2033, bringing the total to about 8 TWac, according to a new Wood Mackenzie analysis. The growth is part of a global drive to electrify economies and achieve decarbonization goals.

The solar sector is set to quadruple

The solar energy sector is expected to experience significant growth, with total installed photovoltaic (PV) capacity worldwide expected to nearly quadruple between 2024 and 2033. According to Wood Mackenzie, about 4.7 terawatts direct current (TWdc) will be installed during this period, with half of this capacity expansion expected to occur in China.

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“Solar PV is leading the deployment race, accounting for 59 percent of global capacity to be deployed between 2024 and 2033,” said Luke Lewandowski, vice president of global renewables research at Wood Mackenzie. Further insights reveal challenges stemming from grid constraints and price volatility. “Ultra-low module prices accelerated solar deployment last year in Europe and China and will continue to do so for the foreseeable future,” added Juan Monge, principal analyst for distributed solar at Wood Mackenzie.

Wind power to add over 1.7 TW worldwide

The wind sector is also poised for significant growth, with more than 1.7 TW expected to be added globally over the next decade. China’s policy initiatives have been particularly influential, driving much of the expected expansion. “In May, China’s central government announced a plan to promote energy transformation and ensure the country achieves carbon neutrality goals,” noted Lucas Stavole, senior research analyst at Wood Mackenzie.

Energy storage increases six-fold

Energy storage capacity, excluding pumped-storage hydro, is expected to increase by more than 600 percent, with almost 1 TW of new capacity expected to come online by 2033. The growth of energy storage is among the fastest in the energy industry, essential to integrating growing renewables. “Global energy storage deployment in 2023 achieved a record increase of 162 percent compared to 2022,” said Anna Darmani, principal analyst, energy storage at Wood Mackenzie.

The surge in renewable energy installations reflects a strong global commitment to transitioning to more sustainable energy systems, despite existing challenges such as inflation, grid constraints and permitting issues.

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