Evaluation from analysis agency Wooden Mackenzie reveals photo voltaic remained essentially the most awarded type of renewable power in authorities tenders final yr, however its share of complete quantity dropped from 59% to 44%. In 2024, authorities tenders are predicted to at the least match 2023 ranges.
Analysis agency Wooden Mackeznie says renewable capability reached 137 GW by means of authorities tenders in 2023.
A ten% enhance yr on yr, Wooden Mackenzie says the expansion got here “regardless of sector value headwinds, logistics tensions, and the power disaster” in 2023.
PV capability was essentially the most awarded type of renewable power by means of authorities tenders final yr. The Asia-Pacific area acquired two-thirds of presidency contracts worldwide, at roughly 90 GW. This was buoyed by China, the place greater than 55 GW had been allotted by means of 49 renewable power tenders. India awarded 20 GW over 55 tenders, whereas Germany was the biggest participant in Europe, with 19 GW awarded by means of 11 rounds.
Wooden Mackenzie is now predicting authorities tenders will drive at the least 102 GW of worldwide renewable capability in 2024, together with at the least 60 GW of offshore wind. It anticipates that the general quantity will develop because the yr progresses, finally matching 2023 ranges.
“Tenders have elevated every year, and Wooden Mackenzie expects to see some massive rewards in 2024 – the EMEA area will maintain greater than 50% of anticipated tenders, principally for offshore wind capability,” mentioned Ana Fernandez Garcia, a senior analysis analyst on the agency. “Particular person main markets, similar to China, will proceed to dominate.”
WoodMac’s evaluation says renewable power tenders are at present experiencing two opposing tendencies. It explains that whereas the offshore wind power sector has witnessed “intense competitors,” leading to subsidy-free tenders and unfavorable bids, onshore and photo voltaic power tenders have gone undersubscribed.
The analysis agency says the shortage of bidders left 30% of the tendered quantity unallocated in 2023. It provides that zero bidding has led to canceling contracts later within the creating part of initiatives.
Fernandez Garcia says each conditions put renewables deployment in danger and illustrate the necessity for tender design reform. She provides that Wooden Mackenzie expects a rise in ceiling costs and non-price standards to play a outstanding position within the yr forward.
Wooden Mackenzie’s newest evaluation follows latest analysis on the levelized value of electrical energy (LCOE) within the Asia-Pacific area, and predictions for annual PV progress by means of 2032, each printed earlier this yr.
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