Renewable Energy Industry

The share of renewables in meeting global energy demand is expected to grow by one-fifth in the next five years to reach 12.4% in 2023.

Renewables will have the fastest growth in the electricity sector, providing almost 30% of power demand in 2023, up from 24% in 2017. During this period, renewables are forecast to meet more than 70% of global electricity generation growth, led by solar PV and followed by wind, hydropower, and bioenergy. 

Hydropower remains the largest renewable source, meeting 16% of global electricity demand by 2023, followed by wind (6%), solar PV (4%), and bioenergy (3%).
While growing more slowly than the power sector, the heat sector – including heating for buildings or industry – will account for the biggest overall share of renewables in meeting energy demand in 2023. 

Renewable heat consumption will be expected to increase by 20% over the forecast period to reach 12% share of the heating sector demand by 2023. Therefore, a modest increase in the share of renewable heat is foreseen, as robust growth in total heat demand is expected to result from continuous economic and population growth.

Renewables in transport have the lowest contribution of all three sectors, with their share growing only minimally from 3.4% in 2017 to 3.8% in 2023. Although they expand by almost one-fifth over the forecast period, renewables cover only a small portion of all energy demand in transport because of ongoing petroleum product consumption. 

Renewables in transport mostly comes from biofuels, and although renewable electricity consumption in the road (such as electric cars, and busess) and rail transport modes increase 65% over the forecast period.