Key Renewable Energy Trends Shaping a Sustainable Future in 2024

Renewable energy is increasingly in the spotlight globally due to the urgent need to reduce carbon emissions and find sustainable alternatives that could significantly benefit the planet.

A BloombergNEF report reveals that global investments in clean energy surged to $1.8 trillion in 2023, marking a 17% increase. China led these efforts with an impressive $676 billion investment last year. This competitive race among countries to advance renewable energy continues, as we explore the top four renewable energy trends for 2024 and beyond.

1. Growing Investments in Renewable Energy

Both public and private sectors are experiencing a boost in investment, fueled by the Inflation Reduction Act (IRA) and similar government initiatives. These efforts are leveraging public funds to attract private capital. For instance, Canada has proposed regulations and tax incentives to further stimulate investments in renewable energy. In 2023 alone, the U.S. allocated over $140 billion to wind energy, reflecting a broader trend where environmental, social, and governance (ESG) factors are driving businesses to adopt more sustainable practices. This shift is contributing to a substantial move away from fossil fuels towards greener energy solutions.

2. Expansion of Biofuels

The global biofuel sector is expanding, driven largely by supportive policies in emerging economies like Brazil, India, and Indonesia. The transportation sector in these countries is a significant demand driver, supported by the availability of biomass feedstock. Brazil, in particular, is poised to lead this expansion, potentially accounting for 40% of global biofuel growth by 2028.

Conversely, biofuel growth in the EU, U.S., Canada, and Japan is slower due to high costs and the rising popularity of electric vehicles. In these regions, growth is concentrated in renewable diesel and biojet fuels. Although the expansion is limited, biofuels used in conjunction with electric vehicles could potentially offset up to four million barrels of oil by 2028. However, the International Energy Agency (IEA) predicts that current growth rates will not suffice to meet the 2030 Net Zero Emissions (NZE) targets, indicating a need for accelerated progress.

3. Surge in Clean Energy Supply Chain Investments

Investment in clean energy supply chains is set to increase significantly, with a projected 66% rise from 2023 to 2024. This growth is driven by the heightened demand for clean technology, particularly in developing battery gigafactories.

The clean energy supply chain is divided into two main segments: factories producing clean-tech equipment and facilities involved in the extraction and processing of battery metals. Total spending in these areas reached $135 billion in 2023. While investments in battery metals constituted only 11% of this total, forecasts suggest this share could rise to 18% by 2026. However, investments in battery metal mines often involve longer lead times compared to solar module factories, resulting in limited visibility for solar investments in 2026-2027.

4. Electrification and Integration of Renewable Energy

There is a noticeable shift towards electrifying technologies traditionally powered by fossil fuels, such as moving from internal combustion engines to electric vehicles and replacing gas furnaces with heat pumps. Additionally, power utilities are increasingly required to incorporate renewable energy to meet growing demands, particularly from data centers supporting cloud computing and artificial intelligence.

Integrating renewable energy into existing power grids is crucial for the energy transition. Key investments include battery storage, smart grid technologies, and upgrading transmission infrastructure to improve renewable energy adoption and manage the intermittency of sources like wind and solar power.

Conclusion

As we move towards a more sustainable future, renewable energy trends will focus on advanced technologies such as energy storage systems and smart grids, enhancing efficiency and reliability in energy distribution. The integration of artificial intelligence will further optimize energy management, allowing for real-time adjustments based on consumption patterns and environmental conditions. Community solar projects, including floating solar and microgrids, will also empower individuals and localities, reducing reliance on traditional energy sources.

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Peter is the Editor in chief who works at Read Magazine