Abstract:
In a significant push for clear vitality, governments globally plan to tender greater than 100 gigawatts of renewable tasks in 2024, with a major give attention to offshore wind. This transfer mirrors the profitable allocation of 137 GW in 2023, underscoring a sturdy international dedication to rising renewable vitality capability. Analysts spotlight the important position of presidency tenders in accelerating the transition to sustainable vitality sources.
Deep Dive:
In a major transfer in direction of bolstering renewable vitality capability, governments worldwide are poised to tender over 100 gigawatts (GW) of renewable vitality tasks in 2024, matching the bold efforts of 2023.
Wooden Mackenzie’s newest report shines a highlight on this sturdy momentum, with a particular give attention to offshore wind, which is anticipated to comprise over 60 GW of the whole capability tendered this yr.
Ana Fernandez Garcia, a senior analysis analyst at Wooden Mackenzie and the lead writer of the report, emphasizes the essential position of presidency tenders in driving renewable vitality deployment globally.
The report highlights the EMEA area’s dominance, anticipated to account for greater than 50% of the tenders, predominantly in offshore wind capability.
The evaluation additional reveals that in 2023, renewable vitality tenders facilitated a record-setting 137 GW of capability awards globally—a ten% improve from the earlier yr, regardless of challenges comparable to price headwinds and logistics tensions.
The majority of this capability, practically 91%, was allotted to offshore wind, onshore wind, and photo voltaic PV applied sciences.
Notably, the onshore wind sector skilled a major rebound, attributed to its elevated competitiveness and strategic significance for financial growth and job creation, as underscored by initiatives just like the EU’s Wind Motion Plan.
China and Germany emerged as leaders in renewable vitality tenders in 2023, awarding substantial capacities by means of quite a few rounds.
The report underscores the important contribution of tenders to the expansion of wind and photo voltaic sectors because the mid-2010s and their continued significance in rising markets.
Nevertheless, it additionally factors out the challenges confronted, together with the extraordinary competitors in offshore wind resulting in subsidy-free and even destructive bids, and the under-subscription in onshore and photo voltaic PV tenders.
What does this imply?
For the renewable vitality asset administration group, these insights supply a transparent view of the market’s trajectory and the evolving aggressive panorama. The rising authorities involvement by means of tenders is ready to catalyze the sector’s growth, driving innovation and funding in renewable applied sciences.
Nevertheless, the report’s name for tender design reform highlights a important space of focus for stakeholders. By addressing the challenges of undersubscription and the complexities of aggressive bidding, the trade can guarantee a extra steady and environment friendly pathway to increasing renewable capability.
This balanced strategy will likely be important in reaching decarbonization targets and guaranteeing vitality independence, marking a pivotal second for renewable asset managers to navigate and capitalize on the alternatives introduced by the worldwide shift in direction of sustainable vitality options.
