Renewable energy industry

The renewable-energy industry is the part of the energy industry focusing on new and appropriate renewable energy technologies. Investors worldwide are increasingly paying greater attention to this emerging industry. In many cases, this has translated into rapid renewable energy commercialization and considerable industry expansion. The wind power, solar power and hydroelectric power industries provide good examples of this. In 2020, the global renewable energy market was valued at $881.7 billion and consumption grew 2.9 EJ. China was the largest contributor to renewable growth, accounting an increment of 1.0 EJ in consumption, followed by the US, Japan, the United Kingdom, India, and Germany. In Europe, renewable consumption incremented 0.7 EJ.

Overview Global efforts towards achieving net-zero emissions and transitioning to 100% renewable energy have accelerated growth across renewable sectors, particularly solar, wind, and lithium-ion battery manufacturing. Projections indicate that by 2050 the renewable energy market could reach a valuation of one trillion US dollars—comparable to the present-day global oil industry. The first major global milestone toward emission reduction was the adoption of the Kyoto Protocol in 1997, which laid the groundwork for the 2016 Paris Agreement. The agreement established differentiated responsibilities, recognizing that developed nations historically emitted a larger share of greenhouse gases. This accountability encouraged significant investment into renewable technologies and infrastructure. According to IRENA, China and the United States currently lead global renewable energy generation. In 2022, China produced 2,673,556 GW of energy from renewable sources, followed by the United States with 981,697 GW. Brazil also plays a major role, ranking consistently third and relying heavily on hydropower for its generation mix. Renewable energy consumption grew at its fastest pace in two decades in 2020. The mid-2000s marked a period of rapid market expansion, highlighted by several high-value IPOs of renewable energy companies. Solar PV manufacturers such as First Solar and Trina Solar, wind energy company Iberdrola, and U.S. biofuel producers VeraSun Energy, Aventine and Pacific Ethanol each reached market valuations exceeding $1 billion. Growth continued through 2008, characterised by rising manufacturing capacity, diversification of production regions and shifts in industry leadership. By August 2008, more than 160 publicly traded renewable-energy companies had market capitalisations above $100 million, up from approximately 60 in 2005. By 2009, global renewable investment reached nearly $150 billion—more than double the $63 billion recorded in 2006. Most of this increase stemmed from expansion in wind, solar PV, and biofuel development. In 2000, venture capital (VC) investment in renewable energy was about 1% of total VC investment. In 2007 that figure was closer to 10%, with solar power alone making up about 3% of the entire Venture Capital asset class of ~$33B. More than 60 start-ups have been funded by VCs in the last three years. Venture capital and private equity investments in renewable energy companies increased by 167 percent in 2006, according to investment analysts at New Energy Finance Limited. New investment into the sector jumped US$148 billion in 2007, up 60 per cent over 2006, noted a report by the Sustainable Energy Finance Initiative (SEFI). Wind energy attracted one-third of the new capital and solar one-fifth. But interest in solar is growing rapidly on the back of major technological advances which saw solar investment increase 254 per cent. The IEA predicts US$20 trillion will be invested into alternative energy projects over the next 22 years. As of 2025, BloombergNEF reports that China was the leading country in investing in the transition to renewable energy. The report also finds that well-developed technologies, like solar and wind energies, are seeing a growth in investments, while newer renewable energy technologies are being invested in less. In 2012, world leaders met in Rio for the United Nations Conference on Climate Change (UNFCCC), where they established 17 Sustainable Development Goals meant to unite leaders in mitigating challenges like climate change. Among these goals are: affordable and clean energy, responsible consumption and production, and climate action. 11 years later, the 2023 United Nations Climate Change Conference, also referred to as COP28 saw the first ever Global Stocktake, where countries are evaluated on their progress towards the sustainable goals they previously set. Also referred to as the UAE Consensus, this evaluation concluded that countries are not on target to reach their sustainable development goals. Subsequently, there has been a call to “tripling renewables and doubling energy efficiency by 2030.”

Wind power In 2020, wind power accounted for more than six percent of global electricity with 743 GW of global capacity. In the same year, 93 GW capacity was installed. For reach a 'net zero' emission status, the world needs to install at least 180 GW of new wind energy capacity by year.

Companies

Vestas was the largest wind turbine manufacturer in the world with and 16% market share in 2020. The company operates plants in Denmark, Germany, India, Italy, Britain, Spain, Sweden, Norway, Australia and China, and employs more than 20,000 people globally. After a sales slump in 2005, Vestas recovered and was voted Top Green Company of 2006. In 2020, Siemens Gamesa was the world's second largest wind turbine manufacturer in 2020 thank to its position in the offshore sector of India. The company lead the offshore wind market. Other major wind power companies include GE Power, Suzlon, Sinovel and Goldwind.

Wind potential Africa's onshore wind energy potential is calculated of almost 180,000 Terawatt hours (TWh) per annum, which is able to satisfy the electricity demands of the continent 250 times over. In 2009, a technical study by the Wind Energy Technologies Office estimated that the onshore wind energy potential for the United States is 10,500 gigawatt (GW) capacity at 80 meters.

Photovoltaics

Trends

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