As we move into the latter half of 2024, the renewable energy sector is poised for significant growth and transformation. Here we will explore key statistics, trends, and challenges shaping the renewable energy landscape, drawing on insights from various authoritative sources.
Overall Growth
The EIA projects that renewable energy deployment will grow by 17% in 2024, adding 42 gigawatts (GW) of capacity and accounting for almost a quarter of the country’s electricity generation U.S. Energy Information Administration (EIA). This growth is part of a broader trend driven by federal investments and decarbonization demands from both public and private sectors.
Solar Power
Solar tracking systems have emerged as a game-changing technology in the solar power industry. They can produce 10% to 60% more energy output than fixed systems, with most sources estimating a 30% to 40% increase (SolarReviews). Solar energy also continues to lead the renewable sector. In 2023, utility-scale solar capacity additions in the U.S. reached almost 9 GW, a 36% increase from the same period in 2022. The EIA expects this momentum to continue, with solar power contributing significantly to the projected 42 GW of new renewable capacity in 2024 (U.S. Energy Information Administration).
Further, Nextracker, a global leader in intelligent solar tracker and software solutions, has recently launched the industry’s first low-carbon solar tracker solution. Their NX Horizon system offers up to 35% lower carbon footprint, demonstrating a commitment to sustainability throughout the supply chain (Nextracker). Another leading provider of solar tracking solutions, Array Technologies, has recently updated components on its dual-row solar tracker to improve performance and ease of installation. These updates include enhancements to the tracker’s structural integrity and operational efficiency (Solar Power World).
Energy Storage
Energy storage is becoming increasingly important as more renewable capacity is added to the grid. The U.S. is expected to see significant growth in energy storage installations, which will help address the intermittency of renewable energy sources and enhance grid resilience (U.S. Energy Information Administration).
Regulatory and Infrastructure Hurdles
One of the main challenges facing the renewable energy sector is the need for improved grid infrastructure and streamlined permitting processes. Transmission capacity and interconnection delays have been significant obstacles, particularly for wind energy projects (U.S. Energy Information Administration). Addressing these issues will be crucial for sustaining the growth of renewables.
Small Modular Reactors
Small Modular Reactors represent a new approach to nuclear power generation, offering several advantages over traditional large-scale nuclear plants. These include lower costs, quicker deployment, enhanced safety, and flexibility. The SMR market is projected to reach a valuation of $18.8 billion by 2030. While only five SMRs are currently operating worldwide, several projects are under construction, and nearly 20 more are in advanced stages of development (Decarbonization Channel).
Supply Chain Resilience
The renewable energy industry is also focusing on reshoring supply chains to reduce dependence on imports and enhance resilience. The first U.S. plants for some upstream components are expected to start operations in 2024, which could strengthen the domestic clean energy industry (U.S. Energy Information Administration).
Workforce Development
The rapid expansion of the renewable energy sector is creating a high demand for skilled labor. The industry is projected to grow by 8% in 2024, with solar energy expected to generate close to 75% of all new jobs in the renewable space through 2030 (U.S. Energy Information Administration). Upskilling the existing workforce and training new talent will be essential to meet this demand.
Federal Policies and Investments
Federal policies such as the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA) have catalyzed significant investments in renewable energy (U.S. Energy Information Administration). These policies are expected to continue driving growth in 2024 and beyond, with a focus on solar, wind, storage, and green hydrogen deployment.
Corporate Commitments
Corporate renewable procurement is also on the rise, with major companies joining initiatives to commit to 100% renewable electricity (U.S. Energy Information Administration). This trend is likely to grow in 2024 as companies strive to meet their decarbonization targets.
Global Trends
Globally, renewable energy capacity is expected to continue its rapid growth. IRENA reports that renewable capacity more than doubled over the past decade, with wind and solar leading the way The International Renewable Energy Agency (IRENA). This trend is expected to accelerate as countries work towards their climate goals.
The renewable energy sector is set for a year of record growth in 2024, driven by strong federal policies, corporate commitments, and technological advancements. However, challenges such as grid infrastructure, supply chain resilience, and workforce development need to be addressed to sustain this growth. By overcoming these hurdles, the renewable energy industry can continue to play a pivotal role in the global transition to a low-carbon economy.
Looking to learn how Planet Forward can help you with your job search or hiring needs? Contact us today.
Photo Credit: Canva