World to add 5.4 TW of solar and wind by 2033 - WoodMac

The world will install more than 5.4 TW of solar and wind capacity between 2024 and 2033, as well as nearly 1 TW of energy storage, excluding pumped hydro, according to Wood Mackenzie’s latest outlook.

Annual wind and solar installations will increase from around 500 GW in 2023 to an average of 560 GW over the 10-year outlook. China will keep its dominant position, installing 3.5 TW across solar, energy storage and wind from 2024 to 2033.

Solar deployments are expected to total 3.8 TW, or 4.7 TW DC, with China accounting for 50% of that.

“Ultra-low module prices intensified the rate of solar deployments last year in Europe and China and will continue to do so in the near-term. But grid constraints and a return to lower power prices and subsequently lower capture rates will impact markets and other regions,” said Juan Monge, principal analyst, distributed solar PV at Wood Mackenzie.

After global energy storage deployment grew 162% year-on-year in 2023 to 45 GW/100 GWh, it is anticipated to reach 159 GW/358 GWh this year. The market is projected to add 926 GW/2,789 GWh between 2024 and 2033. China alone is expected to add an average of 42 GW/120 GWh a year over the next 10 years.

China’s wind installations are seen to average 91.5 GW annually over the period, against an average of 85 GW per year for the rest of the world.

“China’s central government announced a plan in May to promote the energy transition and ensure the country meets carbon-neutral targets. Project development has been accelerated in the short-term and renewable energy investment will be a long-term economic driver,” commented Lucas Stavole, senior research analyst at Wood Mackenzie.

Offshore wind deployment will average 39 GW of connected capacity annually between 2024 and 2033.

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