Government tenders drove 137 GW of renewables in 2023, says WoodMac

Photovoltaics Markets and Technology

Analysis from evaluation company Wood Mackenzie reveals photograph voltaic remained in all probability probably the most awarded sort of renewable vitality in authorities tenders remaining yr, nevertheless, its share of complete amount dropped from 59% to 44%. In 2024, authorities tenders are predicted to have a minimal of match 2023 ranges.

Evaluation company Wood Mackenzie says renewable functionality reached 137 GW by means of authorities tenders in 2023.

A ten enchancment 12 months on 12 months, Wood Mackenzie says the growth obtained right here “no matter sector worth headwinds, logistics tensions, and the vitality catastrophe” in 2023. 

PV functionality was in all probability probably the most awarded sort of renewable vitality by means of authorities tenders remaining 12 months. The Asia-Pacific space acquired two-thirds of presidency contracts worldwide, at roughly 90 GW. This was buoyed by China, the place larger than 55 GW has been allotted by means of 49 renewable vitality tenders. India awarded 20 GW over 55 tenders, whereas Germany was the most important participant in Europe, with 19 GW awarded by means of 11 rounds.

Wood Mackenzie is now predicting authorities tenders will drive a minimal of 102 GW of worldwide renewable functionality in 2024, along with a minimal of 60 GW of offshore wind. It anticipates that the final amount will develop because the 12 months progresses, lastly matching the 2023 ranges.

“Tenders have elevated yearly, and Wood Mackenzie expects to see some enormous rewards in 2024 – the EMEA space will keep larger than 50% of anticipated tenders, largely for offshore wind functionality,” talked about Ana Fernandez Garcia, a senior evaluation analyst on the company. “Explicit individual most important markets, resembling China, will proceed to dominate.”

WoodMac’s analysis says renewable vitality tenders are at current experiencing two opposing traits. It explains that whereas the offshore wind vitality sector has witnessed “intense opponents,” resulting in subsidy-free tenders and damaging bids, onshore and photograph voltaic vitality tenders have gone undersubscribed. 

The evaluation company says the dearth of bidders left 30% of the tendered amount unallocated in 2023. It offers that zero bidding has led to canceling contracts later throughout the rising part of initiatives.

Fernandez Garcia says every situation places renewables deployment in peril and illustrates the need for tender design reform. She offers that Wood Mackenzie expects an increase in ceiling prices and non-price requirements to play an excellent operate throughout the 12 months ahead.

Wood Mackenzie’s latest analysis follows the most recent evaluation on the levelized worth {of electrical} power (LCOE) throughout the Asia-Pacific space, and predictions for annual PV growth by means of 2032, every revealed earlier this 12 months.

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