As the UK’s new chancellor Rachel Reeves announced that the moratorium on onshore wind farms was to be lifted new data predicts from 2024 to 2033, developers will bring more than 5 terawatts (TWac) of new solar and wind capacity online.

Analysis from Wood Mackenzie said such a figure would increase the cumulative global total to 8 TWac, as the world endeavours to electrify economies and meet decarbonisation targets.

Its analysis added energy storage capacity (excluding pumped hydro) will grow by more than 600%, with nearly 1 TW of new capacity expected to come online in the same period. This makes energy storage one of the fastest growing markets in the power industry as renewable integration challenges rise.

“Global demand for renewables has reached unprecedented levels, driven by country-level policy targets, technology innovation, and concerns over energy security. Integrated power technology solutions will continue to evolve, evidenced by a significant increase in storage-paired capacity growth, despite inflation, grid constraints and permitting challenges,” said Luke Lewandowski, vice president, global renewables research at Wood Mackenzie.

Annual capacity will increase from approximately 500 GW of new solar and wind capacity installed in 2023, and average 560 GW annually over the 10-year outlook. China will continue to dominate solar, energy storage, and wind uptake, with 3.5 TWac forecast to be grid-connected between 2024 and 2033.

Reeves revealed that the new government will ease the rules around the permissions for onshore wind farm.

“With the narrow exception of proposals brought forward by Neighbourhood Development Orders and Community Right to Build Orders, where the proposal has proved community support. In practice this has often been interpreted to mean that any opposition means the proposal cannot be considered acceptable,” she explained. “These policy tests no longer apply. The removal of these tests from planning policy means that onshore wind applications will be treated in the same way as other energy development proposals.”

Lewandowski continued: “Solar PV leads the deployment race, accounting for 59% of global capacity due to come online between 2024 and 2033. Energy storage will have the most balanced geographic footprint over the outlook due in part to its important role in helping to make renewable power available.”

“Ultra-low module prices intensified the rate of solar deployments last year in Europe and China and will continue to do so in the near-term. But grid constraints and a return to lower power prices and subsequently lower capture rates will impact markets and other regions,” said Juan Monge, principal analyst, distributed solar PV at Wood Mackenzie.

Wood Mackenzie’s global solar PV forecast projects 4.7 terawatts direct current (TWdc) will be built between 2024 and 2033, with China accounting for 50% of that capacity growth.

Monge added: “Ultimately, maximising solar PV capacity, and wind power capacity for that matter, in the next 10 years will depend on additional technology developments: from expanding grid infrastructure to incentivising flexibility solutions, transportation and heating electrification.”

The analysis added last year, drastic drops in Chinese module prices and tight deadlines to interconnect tendered projects triggered 150% annual growth for installations across all solar PV segments. Year-on-year increases in annual installed capacity will continue until 2026, when Wood Mackenzie forecasts a two-year slowdown due to an expected pause in development activity before the next round of planned procurement drives higher deployment.

“Global energy storage deployment in 2023 achieved record-breaking growth of 162% compared to 2022, installing 45 GW/100 GWh. While impressive, the growth represents just the start for a multi-TW market as policy support in terms of tax exemption and capacity and hybrid auctions accelerate storage buildout across all regions,” said Anna Darmani, principal analyst, energy storage, at Wood Mackenzie.

According to Wood Mackenzie’s Q2 global wind market outlook update, policy support from China’s central government drives the world’s largest wind market, with China forecasted to install 91.5 GW on average annually.

Lucas Stavole, senior research analyst at Wood Mackenzie said: “China’s central government announced a plan in May to promote the energy transition and ensure the country meets carbon-neutral targets. Project development has been accelerated in the short-term and renewable energy investment will be a long-term economic driver.”