The Renewables Global Status Report 2023 shows a notable slowdown of the global primary energy demand in 2022, with just a 1.1% increase compared to the substantial 5.5% growth witnessed in 2021. Renewables, excluding hydropower, accounted for 7.5% of primary energy, marking an increase of almost 1% from the previous year. Fossil fuels, however, maintained their dominant position at 82%. Over the decade from 2011 to 2021, the world's total final energy consumption (TFEC) expanded by 16%. The renewable energy sector faced challenges in 2022, including rising equipment costs, inflation, and supply chain disruptions. Prices of key materials such as steel, copper, aluminum, and polysilicon surged due to disruptions and increased demand during the post-COVID-19 economic recovery. However, wind and solar energy technologies remained cost-effective compared to fossil fuels in most countries. 

To ensure a successful energy transition, governments and development partners should promote equitable financing, using public funds to support infrastructure, policies, and social equality in underserved regions. Investment in renewable energy, the broader sector, and the economy is crucial. Public funds can be raised through grants, debt, equity, and fiscal policies like taxation and Power Purchase Agreements (PPAs). In regions with limited public funds, the international community and the private sector should step in. This requires mitigating project risks, attracting private investment, mobilizing institutional funds, promoting green bonds for renewables, and creating regulatory sandboxes aligned with social and environmental goals to stimulate further investments.

Read full report Renewables 2023 Global Status Report.

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