The global power sector in August 2024 is witnessing unprecedented transformation, characterized by a significant shift towards renewable energy, driven by rising global electricity demand and record-breaking investments in clean energy technologies.
As nations across the world intensify their efforts to decarbonize and modernize their energy infrastructures, the sector is marked by a rapid expansion of renewable capacity, strategic mergers and acquisitions, and innovative advancements in energy generation, transmission, and storage.
This overview captures the key developments across different regions and sectors, highlighting the collective momentum towards a sustainable and resilient energy future.
From large-scale solar and wind projects to groundbreaking technological innovations, the energy landscape is evolving at a pace that underscores the global commitment to addressing climate change and securing a sustainable energy supply for future generations.
1. Global Power Sector Overview
- Global Electricity Demand Growth: Global electricity demand is projected to grow by around 4% in 2024, marking a significant increase compared to previous years. Solar PV is expected to meet roughly half of this demand, reflecting the growing importance of renewable energy.
- Investment in Clean Energy: Global spending on clean energy technologies is set to reach $2 trillion in 2024, with total energy investment worldwide expected to exceed $3 trillion for the first time. This highlights the increasing prioritization of renewables and sustainable energy infrastructure.
- Renewable Energy Expansion: Renewables now account for over 50% of Europe’s energy, with similar expansions occurring in North America and Australasia. This shift underscores the accelerating global energy transition towards low-carbon sources.
- Innovations in Energy: Technological advancements continue to play a critical role in the energy sector. An AI-embedded drone grid defect inspector won the APEC Smart Grid Award, exemplifying how innovation is enhancing grid maintenance and reliability.
2. Regional Highlights
Europe
- Renewable Energy Dominance: Europe has solidified its leadership in the global energy transition, with renewables accounting for over 50% of all power generated in the region. The European Union is a frontrunner, with 74% of its electricity coming from renewable and low-carbon sources.
- UK’s Offshore Wind Projects: The UK is making significant strides in offshore wind energy, allocating £1.1 billion for new projects, including emerging technologies like floating offshore wind. These investments are part of the UK’s broader clean energy initiative, which has seen record funding this year.
- Germany’s Grid Enhancements and Renewable Investments: Germany continues to invest heavily in grid infrastructure to support the integration of renewable energy, particularly offshore wind and solar power. Despite canceling talks with KfW over the full sale of its Germany unit, TenneT remains focused on bolstering the country’s energy transition.
North America
- US Solar and Wind Growth: The United States is witnessing rapid growth in solar and wind energy, driven by favorable policies such as the Inflation Reduction Act. Utility-scale solar is expected to account for 7% of U.S. generation by 2025, reflecting the country’s commitment to expanding renewable energy sources.
- Canada’s Renewable Energy Expansion: Canada is broadening its renewable energy portfolio with new wind and solar projects in Ontario and Alberta. Additionally, significant investments in hydroelectric power are helping to reduce the country’s reliance on fossil fuels.
- Mexico’s Solar Power Expansion: Mexico has announced new solar projects in the Sonora region, aiming to increase its renewable energy capacity significantly and reduce dependency on natural gas.
South America
- Brazil’s Solar Energy Boom: Brazil’s installed solar capacity has exceeded 10,000 MW, with projections indicating continued rapid growth by 2030. The country’s leadership in renewable energy was further highlighted during the Smarter South America exhibition.
- Chile’s Renewable Projects: Chile continues to lead Latin America in renewable energy, with new wind farms and solar installations, particularly in the Atacama Desert, reinforcing its position as a regional energy transition leader.
- Argentina’s Renewable Energy Initiatives: Argentina is advancing its renewable energy projects, including wind farms in Patagonia and solar installations in the northern provinces, as part of its efforts to diversify its energy mix.
Africa
- South Africa’s Renewable Energy Growth: South Africa is expanding its renewable energy capacity with new wind and solar projects, such as the Northern Cape solar farm and the Western Cape wind project, signaling its commitment to reducing carbon emissions.
- Morocco’s Solar Projects: Morocco continues its ambitious solar energy expansion with the Noor Midelt solar complex, which combines photovoltaic (PV) and concentrated solar power (CSP) technologies, positioning the country as a leader in African renewable energy.
- Kenya’s Geothermal Energy: Kenya is enhancing its geothermal energy capacity with new projects in the Rift Valley, aiming to increase its share of renewables and provide a stable energy supply.
Middle East
- Israel’s Largest PV Plant: EDF Renewables is set to build the largest PV plant in Israel, marking a significant investment in the country’s renewable energy infrastructure and boosting its solar capacity.
- UAE’s Solar Investments: The UAE continues its investment in solar energy, with the Al Dhafra solar project expected to add 2 GW of capacity, making it one of the largest solar projects in the world and a cornerstone of the country’s energy strategy.
- Jordan-Iraq Energy Cooperation: The second phase of the Jordan-Iraq energy connection is nearing completion, enhancing regional energy connectivity and demonstrating the growing importance of cross-border energy projects in the Middle East.
Australia
- Australia’s Renewable Expansion: Australia is aggressively expanding its renewable energy capacity, with solar, wind, and hydro now providing about 40% of electricity generation on the eastern seaboard. Major projects like the Snowy 2.0 hydroelectric scheme and large-scale solar farms in Queensland are central to this expansion.
- New Zealand’s Wind Energy Projects: New Zealand is investing in new wind farms on the North Island, aiming to increase its renewable energy share despite ongoing challenges in the energy sector. These projects are crucial for the country’s goal of achieving 100% renewable electricity by 2030.
- Pacific Islands Solar Initiatives: The Pacific Islands, particularly Fiji and Tonga, are launching new solar projects to reduce their reliance on imported diesel and transition towards sustainable energy solutions, reflecting a broader commitment to renewable energy in the region.
South East Asia
- Vietnam’s Renewable Projects: Vietnam is rapidly expanding its renewable energy capacity with new solar and wind projects in the Mekong Delta and central highlands. These developments are part of Vietnam’s strategy to become a regional leader in renewable energy.
- Indonesia’s Geothermal and Solar Expansion: Indonesia is enhancing its geothermal energy capacity, particularly in Java and Sumatra, while also investing in large-scale solar projects across the archipelago to diversify its energy mix.
- Philippines’ Renewable Developments: The Philippines is investing heavily in new solar and wind projects, particularly in Luzon, as it aims to increase its renewable energy share to 35% by 2030, underlining the country’s commitment to reducing its carbon footprint.
South Asia
- India’s Solar Record: India added a record 15 GW of solar capacity in the first half of 2024, with new projects in Rajasthan and Gujarat leading the charge. This rapid expansion underscores India’s position as a global leader in renewable energy.
- Bangladesh’s Solar Expansion: Bangladesh is launching new solar projects to increase its renewable energy share, including a 200 MW solar farm in the Chittagong region, contributing to the country’s energy security.
- Pakistan’s Renewable Projects: Pakistan is boosting its hydropower capacity with new projects in Khyber Pakhtunkhwa and expanding solar power across the Punjab region, demonstrating a commitment to a more sustainable energy future.
3. Sector-Specific Highlights
Energy Generation
- Global Growth and Nuclear Expansion: Global electricity generation is expected to rise by 4% in 2024, driven by significant increases in renewable energy sources such as solar and wind. Additionally, nuclear generation is set to reach a new high in 2025, with countries like China and India leading the expansion of nuclear power.
- Hydroelectric Power’s Role: Hydroelectric power continues to be a cornerstone of renewable energy generation, particularly in regions like South America and Africa, where new projects are being developed to meet rising energy demands.
Energy Transmission
- National Grid’s Sea Link Project: National Grid is proposing the Sea Link project to reinforce the electricity transmission network between Suffolk and Kent via a new offshore cable link, which is crucial for increasing the capacity to transmit renewable energy across the UK.
- SSEN Transmission’s Subsea Cable: A multi-billion-pound subsea cable project between Scotland and England has received approval, aiming to modernize the grid and support the transmission of renewable energy from Scotland’s wind farms to other parts of the UK.
- Jordan-Iraq Energy Connection: The nearing completion of the second phase of the Jordan-Iraq energy connection is set to enhance regional energy connectivity, allowing for the efficient transfer of electricity between the two countries.
Energy Distribution
- UK-Brazil Electricity Innovation Challenge: This initiative was launched to foster innovation in electricity distribution between the UK and Brazil, focusing on developing new technologies and strategies to improve energy efficiency and integration of renewables.
- Saudi Electricity Surge: Saudi Arabia saw a 6% increase in electricity generation in the first half of 2024, driven by higher gas availability and the growing role of renewables in the energy mix, highlighting the kingdom’s efforts to diversify its energy sources.
Power and Distribution Transformers
- Hitachi Energy’s SF6-Free Technology: Hitachi Energy has developed new SF6-free technology for transformers, which reduces environmental impact and enhances grid reliability, marking a significant advancement in transformer technology.
- Eskom’s Transformer Supply Contracts: Eskom has appointed suppliers for upcoming transformer contracts to unlock the grid in South Africa. These contracts, worth around R7 billion over four years, focus on improving the reliability and efficiency of electricity transmission.
4. Corporate Activities
Strategic Partnerships and Collaborations
- Infintium Fuel Cells and Goldenstone Acquisition: Infintium Fuel Cells acquired Goldenstone Acquisition for $18 million, expanding its manufacturing capabilities and positioning itself for growth in the clean energy market.
- Ørsted and Sunrise Wind: Ørsted acquired Sunrise Wind for $230 million, adding to its offshore wind portfolio in the northeastern US, highlighting its commitment to expanding its renewable energy footprint in North America.
- Masdar’s Terna Acquisition: Masdar sought a €3.2 billion takeover of Greek renewables firm Terna, signaling its strategic expansion into the European renewable energy market.
- EnergySage and PayOli Partnership: EnergySage and PayOli have formed a strategic partnership aimed at empowering solar shoppers through customer education. This collaboration, which began in 2020, has been pivotal for PayOli, allowing the company to expand its services and better serve its growing customer base in Florida. PayOli CEO Juan David Payares highlighted that EnergySage’s platform has played a crucial role in generating leads and maintaining high conversion rates by connecting well-informed customers with reputable installers. The partnership is built on a shared mission to educate consumers about solar energy, helping them make informed decisions and fostering trust in the industry. This relationship underscores the importance of quality customer service and the benefits of aligning with a reputable network like EnergySage.
- BP’s Brazilian Biofuels JV: BP agreed to buy out a Brazilian biofuels joint venture valued at $1.4 billion, expanding its presence in the biofuels market and reflecting its broader commitment to diversifying its energy portfolio.
- Innergex and Texas Wind and Solar: Innergex sold minority stakes in 826 MW of Texas wind and solar projects, part of its strategy to optimize its portfolio and reinvest in new renewable energy opportunities.
- Sembcorp’s Vietnam Acquisition: Sembcorp acquired 196 MW of wind and solar assets in Vietnam, demonstrating continued interest in Southeast Asia’s rapidly growing renewable energy market.
- Nextracker’s Acquisition of Ojjo: Nextracker acquired US solar foundations expert Ojjo, strengthening its capabilities in solar infrastructure and enhancing its market position in the rapidly expanding solar industry.
- UNIGRID’s Investment in Sodium-Ion Batteries: Sodium-ion battery maker UNIGRID raised $12 million, signaling growing interest in alternative energy storage technologies that could play a crucial role in the future of renewable energy.
- Fortescue’s Investment in Wind Technology: Fortescue made a new investment in wind technology firm Nabrawind, expanding its portfolio in renewable energy technologies and supporting the development of innovative wind power solutions.
- Statkraft’s Spanish Solar Projects: Statkraft offered Spanish farmers the opportunity to invest in its new solar plants, reflecting an innovative approach to financing and community involvement in renewable energy projects.
- TBEA and Amazon Energy MOU: TBEA has signed a Memorandum of Understanding (MOU) with Amazon Energy to supply 400 MWac of Central Modular Inverters and ITS TC8800KT for their Brazilian photovoltaic (PV) projects. This strategic collaboration underscores both companies’ commitment to advancing renewable energy in Latin America. The partnership highlights TBEA’s role in providing reliable and flexible turnkey solutions, contributing significantly to the region’s renewable energy infrastructure and paving the way for a sustainable energy future.
Renewable Energy Projects
- EDF Renewables’ Israel PV Plant: EDF Renewables is set to build the largest PV plant in Israel, significantly boosting the country’s renewable energy capacity and marking a major step in the region’s energy transition.
- Australia’s Wind and Solar Projects: Australia announced several new wind and solar projects, including the 600 MW New England Solar Farm and associated battery storage, demonstrating the country’s commitment to expanding its renewable energy infrastructure.
- Urbasolar’s Dominican Solar Project: Urbasolar received approval to sell its Dominican solar project to Akuo, further expanding its presence in the Caribbean renewable energy market.
- Masdar’s Egyptian Solar Projects: Masdar announced plans to develop several solar projects in Egypt, focusing on increasing the country’s renewable energy capacity and supporting its sustainable development goals.
- India’s New ISTS Substation: A new ISTS substation has been proposed in India, aimed at strengthening the power transmission network and ensuring reliable energy supply as the country’s solar capacity continues to expand.
- Nextracker’s Solar Expansion in the US: Nextracker is enhancing its US solar portfolio with new projects in California and Texas, focused on utility-scale solar installations that will contribute significantly to the country’s renewable energy goals.
- Indonesia’s Renewable Expansion: Indonesia is investing in large-scale geothermal and solar projects as part of its strategy to meet ambitious renewable energy targets and diversify its energy mix.
5. Challenges and Opportunities
Energy Storage
- Global Need for Storage Solutions: The need for reliable energy storage is becoming increasingly critical worldwide, particularly in regions like Africa where grid resilience is a major concern. Investments in battery energy storage systems (BESS) and mini-grids are gaining traction as essential components of a modern, flexible energy system.
- Global Battery Storage Growth: Battery storage capacity is expected to grow significantly in the coming years, supporting the integration of renewable energy sources and ensuring grid stability, particularly as more intermittent renewable energy sources come online.
Grid Modernization
- Global Investments: Investments in grid modernization are crucial to support the integration of renewable energy sources and ensure grid resilience. Regions like Europe and North America are leading the way with significant infrastructure projects aimed at upgrading and expanding the transmission and distribution networks.
- Smart Grid Technologies: Innovations like AI-embedded drones for grid inspection are enhancing grid maintenance and reducing downtime, showcasing the role of technology in modernizing energy infrastructure and improving the efficiency and reliability of energy systems.
Conclusion
Summary of Global Trends: The global power sector is undergoing a significant transformation, driven by substantial investments in renewable energy, grid modernization, and innovative technologies.
The accelerating shift towards clean energy is evident across all regions, with major projects and corporate activities reflecting the broader commitment to a sustainable energy future.
As the world moves towards a more resilient and low-carbon energy system, the integration of renewables and the modernization of infrastructure will continue to be critical factors in shaping the future of global energy.
