The Russian war of aggression in Ukraine has had a significant impact on global energy markets, leading to an increase in renewable energies. The International Energy Agency has recorded a high growth rate in photovoltaics and wind turbines as countries aim to become less dependent on fossil fuels. Rising prices have also played a significant role in the expansion of renewable energies, which is expected to increase by a third this year. The total capacity is expected to increase by 440 to 4500 gigawatts worldwide, with Europe, the USA, and India being the main growth drivers.
China remains the leader in the growth of renewable energies, with a 55% share. Governments worldwide are making efforts to expand renewable energies, but care must be taken to upgrade and expand power grids and fully utilise the potential of wind and sun, including creating storage systems. The growth in photovoltaics is being driven by the simultaneous expansion of production capacities, with China leading the way. Meanwhile, wind power growth rates have recovered compared to previous years, with demand expected to continue to exceed supply.
The expansion of renewables in Europe has prevented even higher prices increases, according to the International Energy Agency. Wholesale electricity prices would have risen by a further 8% without the expansion, and the share of renewable energies in the electricity mix in many countries exceeded 40% for the first time. Therefore, the expansion of renewable energies is crucial to reducing electricity prices and increasing global capacity.
