S&P Global Commodity Insights forecasts that wind and solar installations are set to exceed one terawatt (TW) within the next two years.
In its recent report on the Top 10 Trends in Clean Energy Technology in 2024, S&P Global underlines the importance of adaptable power systems to manage the swift rise in renewable energy.
Edurne Zoco, Executive Director of Research and Analysis, Gas, Power & Climate Solutions at S&P Global Commodity Insights, states, “Any power system heavily reliant on intermittent renewable generation will need increased flexibility assets like storage and demand response.”
The report anticipates nearly $800 billion in clean energy technology (CET) investments for 2024.
Philippe Frangules, Head of Gas, Power & Climate Solutions at S&P Global, notes a 15% surge in CET investments. Solar dominates the additional spending, making up around 55% of the total investment, with onshore wind as the second-largest segment.
The forecast also acknowledges challenges in the solar and storage industry.
Oversupply concerns have sparked a downstream price war, squeezing margins and raising apprehensions about market consolidation in 2024.
Despite these challenges, the renewable energy sector’s projected growth underscores its resilience and the pivotal role of innovation in navigating evolving market dynamics.