ACS works tirelessly to support the rapidly growing hydrogen economy. We believe that there are countless lifechanging technologies attainable to the human race in the future and we believe hydrogen will play a major role in delivering clean energy to these future breakthroughs. However, even once the hydrogen economy reaches a level of maturity that brings costs down to targeted levels, it will be largely toothless in the fight against climate change without an adequately robust supply of renewable energy.
For this reason, we are pleased to observe a major milestone: renewable energy sources are now responsible for creating 30% of global electricity, up from just 19% in 2020 (Frost, 2024). “The renewables future has arrived,” says Ember director of global insights Dave Jones. “Solar, in particular, is accelerating faster than anyone thought possible.” He added that “2023 was likely the pivot point — peak emissions in the power sector — a major turning point in the history of energy.” Hydro power accounted for 14.3% of global energy in 2023; solar and wind generated 13.4% combined.
The most rapid change has been taking place in China, with 216 gigawatts of solar capacity installed last year alone: more than the total current solar capacity of the United States. The Biden administration announced it will double U.S. tariffs on Chinese solar panels to 50% and quadruple those on Chinese electric vehicles to 100%, in an effort to fend off Chinese domination in this market (Tyson, 2024). By 2027, GlobalData estimates the renewable energy market to be worth US$644trn – an increase of 25% since 2022 (McLaren 2024).
The true marker of success in the renewables sector will be the decline in fossil fuel usage which nearly came to fruition in 2023. Under ordinary circumstances, global fossil fuel emissions would have dropped 1.1%, but abnormal weather conditions created excess energy demand which was largely met by increased coal-powered generation, resulting in an overall 1% increase in global emissions. Four countries severely affected by drought accounted for 95% of the rise in coal generation: China, India, Vietnam and Mexico.
Growth in renewables is projected to outstrip growth in global energy demand in 2024 and into the future. New wind and solar farms installed in 2023 could account for 82% of the world’s increase in energy demand over the same time period. Some sources estimate that new wind and solar sources have effectively decreased the usage of fossil power by 22%.
ACS will be keeping a close eye on this sector and anticipating more exciting progress to come. Give us a call today to find out how we can be the perfect partner for any manufacturer seeking to take part in this noble industry.
