China and the rich bloc account for 90% of new renewables and 95% of electric cars

The take-off of clean energies reached an unknown dimension in 2023, with solar and wind power accelerating the pace and reaching a combined power of more than 530 gigawatts (GW), quadruple the total capacity of the Spanish electrical system. Sales of electric cars also grew strongly: 35% year-on-year, adding 14 million new battery-powered vehicles to the roads.

The geographical gap in the energy transition, on the other hand, is increasingly evident: last year, China and the rich countries—which together add just over a third of the global population— accounted for 90% of the new renewable capacity and more than 95% of electric car registrations. “The growth of clean energy is too concentrated in advanced economies and China, while the rest of the world continued to lag far behind,” technicians from the International Energy Agency (IEA), dependent on the OECD, warned this Friday.

The case of solar is especially paradigmatic. New capacity grew by 80% worldwide, ending the year at over 420 GW. It is 16 times the installed power in Spain. The geographical concentration, however, was very significant: the Asian giant accounted for more than 60% of the world total, more than ever in the entire historical series. “The explosion of photovoltaics was thanks to China,” summarizes the IEA. In 2023, the cost of photovoltaic modules – mostly manufactured in the Asian country – fell by half compared to a year before.

In the European Union, solar capacity increased by almost 30%, with 52 new gigawatts installed, while in the United States growth was around 50% thanks to the powerful federal incentive scheme. The other side is India, the most populated country in the world and the best exponent of the developing bloc, which closed 2023 with only 12 new gigabytes, a third less than in the previous twelve months.

Something similar can be said about the wind, which registered an increase of almost 60% on a global scale. Of that figure, almost two-thirds corresponded to China, which doubled its growth rate compared to 2022. In Europe, on the other hand, the increase was only 10%, with land projects putting the brakes on. And in the US there was even a 10% contraction compared to 2022. Even so, the new power connected to the grid in the North American giant was notably higher than that of the developing world, where its weight in the mix remains low.

The electric car, a paradigmatic case

However, if one sector summarizes the abyss between the pace of the energy transition particularly well, it is that of the electric car. Although its global growth is very significant – in 2023, sales of these vehicles more than sixfold the levels of 2019, the year before the pandemic, with an annual growth rate of 60% in the period – one name stands out above of the rest: China. In that country, the second most populated in the world and where one in every three new cars is now powered by batteries, sales reached eight million units. Six out of every ten electric vehicles sold globally are registered there. All despite the end of several official aid last year.

The second largest global electric car market is Europe, where 2.4 million units were sold last year – a fifth more – and its market share is already around 25%. It is followed by the United States, where 1.4 million were sold, 40% more. On the opposite side, again, are developing countries: in India, despite growing at a rate of 70% annually, electric vehicles continue to be a “very small” part of the total. The adoption of two- and three-wheeled vehicles is becoming faster, both there and in other developing economies. “Progress in electric mobility goes beyond cars. Particularly in the emerging world, where buses are also increasing [a pilas]”, point out the IEA technicians.

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