47 RENEWABLES Electricity consumption is forecasted to almost double by 2050, driven by development and electrification. There is anticipated to be a massive growth in renewable energy share, driven by the energy transition, from about 30% of the energy mix now, to nearly 75% in 2050. According to Bloomberg NEF, global investments into renewable energy production, excluding large hydro, was USD 623 billion in 2023. Although 8% higher compared to the year before, this rate is notably lower than the growth rate in 2021 and 2022, which saw annual investments rising by 24% and 25% respectively. Solar continued to be the biggest driver in renewable energy investments in 2023, with large and small-scale solar projects rising by 12%, or USD 393 billion, from the year before. The big drop in solar module prices has meant that solar investments are able to stretch further, boosting capacity generation significantly. Around 414 GW of solar projects were installed in 2023, up 64% year-on-year. During the same period, wind investments reached an all-time high of USD 217 billion, of which around USD 140 billion was directed at the onshore wind market. Market growth is still largely driven by technological advancements, governmental incentives, and an increasing shift towards green energy by both private and public sectors, not least of which was the global pledge by 130 nations at COP28 to triple renewable energy capacity to around 11,000 GW by 2030. Additionally, the ongoing Ukraine crisis and economic recovery post pandemic has spurred strong political ambition that supports the energy security agenda – bringing about even more positive policy and regulation changes to incentivise the renewables industry. GLOBAL INVESTMENT IN RENEWABLE ENERGY Source: BloombergNEF, Energy Investment Trends 2024. Biofuels Others Geothermal Wind Solar 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 33 51 80 107 156 153 213 267 239 212 265 295 292 318 314 345 372 576 623 USD billion 0 100 200 300 400 500 700 600 461 VALUE CREATION AT YINSON | MARKET LANDSCAPE
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