Government tenders are expected to drive more than 100 GW of global renewable energy capacity in 2024. Of this, over 60 GW will be allocated to offshore wind projects. Wood Mackenzie's latest analysis indicates that the overall volume is projected to match the levels seen in 2023 as the year progresses.
In 2023, approximately 137 GW of renewable energy capacity was awarded globally through government tenders, marking a 10% increase compared to the previous year. This growth occurred despite challenges such as cost pressures, logistical constraints, and energy supply issues. Nearly 91% of the allocated volume was attributed to offshore wind, onshore wind, and solar PV projects, with the remaining 9% going to hydro, biofuel, geothermal, solar thermal, and tidal technologies.
Solar PV capacity received the highest share of awards, representing 44% of the total volume with 61 GW, down from 59% in 2022. Onshore wind followed with 24% (34 GW), while offshore wind accounted for 23% (31 GW), experiencing its third consecutive year of growth.
The Asia Pacific region secured the majority of the contracts, with around 67% allocated, equivalent to approximately 90 GW. This was followed by EMEA with 37 GW (27%), and the Americas with nearly 10 GW (7%).
In terms of capacity awards, China led the way in 2023 with over 55 GW allocated across 49 renewable energy tenders. India awarded 20 GW through 55 tenders, while Germany awarded 19 GW through 11 rounds.
Renewable energy tenders are experiencing contrasting trends. While the offshore wind sector has seen fierce competition resulting in subsidy-free tenders and even negative bids, onshore wind and solar PV tenders have struggled to attract sufficient interest. This led to 30% of the volume being tendered unallocated in 2023. However, the lack of bids has also resulted in contracts being cancelled during the project development phase, as highlighted in the report.
