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External factors and trends

There has been a clear acceleration in the transition to fossilfree energy. Despite inflation, increased interest rates and volatile electricity prices, the market for renewables continues to grow. This is driven by policy objectives, technological developments, forecasts of a sharp increase in demand in the short term and strong investor interest.

Tripling capacity by 2030

In autumn, the EU raised the renewable energy target to 42.5 percent by 2030, with the ambition of achieving 45 percent. A few months later, the countries attending COP28 agreed to triple global renewable energy capacity by 2030.

Similar developments can be seen all over the world. Countries have raised or already surpassed their targets for the share of renewables. The International Energy Agency (IEA) predicts that renewables will overtake coal as a the leading global energy source by 2025.

Higher, more efficient and cost-effective

The technological development of renewable energy has continued at a rapid pace. This includes the installation and testing of the world’s first 20 MW offshore wind turbine and plans presented by battery manufacturers to massproduce batteries based on iron and sodium salt, rather than rare earths.

"The transition to clean energy is happening worldwide and it’s unstoppable. It’s not a question   of ‘if’, it’s just a matter of ‘how soon’ – and the sooner the better for all of us."

Fatih Birol, Executive Director of the International Energy Agency (IEA)

Increasing demand

As the world transitions to clean energy, many sectors are in need of electrification. For example, if a car manufacturer is to offer a fossil-free car, this not only requires an electric motor, but the raw material must also be produced without using fossil fuel.

An increasing number of industries have begun making this shift and so need quick access to large amounts of fossil-free electricity. Renewable energy is the fastest way of providing clean electricity.

Investor interest remains strong

Inflation and high interest rates together with volatile electricity prices were global trends in 2023. This slightly dampened demand from financial buyers during the year, although demand from strategic and industrial buyers of renewable capacity remained strong.