More than half of new U.S. electric-generating capacity in 2023 will be solar

Clean Energy Investment is surging as renewables, electric vehicles, grids, storage, and nuclear outpace fossil fuels, driven by energy security, affordability, and policies like the Inflation Reduction Act, the IEA's World Energy Investment report shows.

Key Points

Investment in renewables, EVs, grids, and storage now surpasses fossil fuels amid cost and security pressures.

✅ $1.7T to clean tech vs just over $1T to fossil fuels this year.

✅ For every $1 in fossil, about $1.7 goes to clean energy.

✅ Solar investment poised to overtake oil production spending.

Investment in clean energy technologies is significantly outpacing spending on fossil fuels as affordability and security concerns, underpinned by analyses showing renewables cheapest new power in many markets, triggered by the global energy crisis strengthen the momentum behind more sustainable options, according to the International Energy Agency's (IEA) latest World Energy Investment report.

About $2.8 trillion (€2.6 trillion) is set to be invested globally in energy this year, of which over $1.7 trillion (€1.59 trillion) is expected to go to clean technologies - including renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements and heat pumps – according to report.

The remainder, slightly more than $1 trillion (€937.7 billion), is going to coal, gas and oil, despite growing calls for a fossil fuel lockdown to meet climate goals.

Annual clean energy investment is expected to rise by 24% between 2021 and 2023, driven by renewables and electric vehicles, with renewables breaking records worldwide over the same period.

But more than 90% of this increase comes from advanced economies and China, which the IEA said presents a serious risk of new dividing lines in global energy if clean energy transitions don’t pick up elsewhere.

“Clean energy is moving fast – faster than many people realise. This is clear in the investment trends, where clean technologies are pulling away from fossil fuels,” said IEA executive director Fatih Birol. “For every dollar invested in fossil fuels, about 1.7 dollars are now going into clean energy. Five years ago, this ratio was one-to-one. One shining example is investment in solar, which is set to overtake the amount of investment going into oil production for the first time.”

Led by solar, low-emissions electricity technologies are expected to account for almost 90% of investment in power generation, reflecting the global renewables share above 30% in electricity markets.

Consumers are also investing in more electrified end-uses. Global heat pump sales have seen double-digit annual growth since 2021. Electric vehicle sales are expected to leap by a third this year after already surging in 2022.

Clean energy investments have been boosted by a variety of factors in recent years, including periods of strong economic growth and volatile fossil fuel prices that raised concerns about energy security, and insights from the IRENA decarbonisation report that underscore broader benefits, especially following Russia’s invasion of Ukraine.

Furthermore, enhanced policy support through major actions like the US Inflation Reduction Act and initiatives in Europe's green surge, Japan, China and elsewhere have played a role.

In Ireland, more than a third of electricity is expected to be green within four years, illustrating national progress.

The biggest shortfalls in clean energy investment are in emerging and developing economies, the IEA added. It pointed to some bright spots, such as dynamic investments in solar in India and in renewables in Brazil and parts of the Middle East. However, investment in many countries is being held back by factors including higher interest rates, unclear policy frameworks and market designs, weak grid infrastructure, financially strained utilities and a high cost of capital.

"Much more needs to be done by the international community, especially to drive investment in lower-income economies, where the private sector has been reluctant to venture," according to the IEA.

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UK electric vehicle sales reached a record high in September, with battery and hybrid cars making up over half of new registrations. SMMT credits carmaker discounts, new models, and a £3,750 EV grant for driving strong demand across the UK market.

Why are UK Electric Vehicle Sales Surging to a Record High?

UK electric vehicle sales are surging to a record high because automakers are offering major discounts, more models are available than ever, and the government’s new £3,750 EV grant is making electric cars more affordable and appealing to both fleets and private buyers.

✅ BEV sales up nearly one-third in September

✅ Over half of all new cars are now electrified

✅ £3,750 EV grants boost consumer confidence

Electric vehicle (EV) sales in the United Kingdom reached a record high last month, marking a significant milestone in the country’s transition to cleaner transportation. According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), sales of pure battery electric vehicles (BEVs) surged by nearly one-third to 72,779 units in September, while plug-in hybrid registrations grew even faster.

The combined total of fully electric and hybrid vehicles accounted for more than half of all new car registrations, underscoring the growing appeal of electrified transport, alongside global EV market growth, among both businesses and private consumers. In total, 312,887 new vehicles were registered across the country — the strongest September performance since 2020, according to SMMT data.

SMMT chief executive Mike Hawes said the surge in electrified vehicle sales showed that “electrified vehicles are powering market growth after a sluggish summer.” He credited carmaker incentives, a wider choice of models, and government support for helping accelerate adoption, though U.S. EV market share dipped in Q1 2024 by comparison. “Industry investment in electric vehicles is paying off,” Hawes added, even as he acknowledged that “consumer demand still trails ambition.”

The UK government’s new electric car grant scheme has played a significant role in the rebound. The program offers buyers discounts of up to £3,750 on eligible EVs priced under £37,000. So far, more than 20,000 motorists have benefited, with 36 models approved for reductions of at least £1,500. Participating manufacturers include Ford, Toyota, Vauxhall, and Citroën.

Ian Plummer, chief commercial officer at Autotrader, said the grant had given a “real lift to the market,” echoing fuel-crisis EV inquiry surge in the UK. He noted that “since July, enquiries for new electric vehicles on Autotrader are up by almost 50%. For models eligible for the grant, interest has more than doubled.”

While the majority of BEVs — about 71.4% — were purchased by companies and fleets, the number of private buyers has also been increasing. Zero-emission vehicles now account for more than one in five (22.1%) new car registrations so far in 2025, similar to France’s 20% EV share record, highlighting the growing mainstream appeal of electric mobility.

The surge comes amid a challenging backdrop for the automotive sector, even as U.S. EV sales soared into 2024 across the Atlantic. The UK car industry is still reeling from the effects of US trade tariffs and recent disruptions, such as Jaguar Land Rover’s production shutdown following a cyberattack. Despite these hurdles, the strong September figures have boosted confidence in the industry’s recovery trajectory, and EU EV share grew during lockdown months offers precedent for resilience.

Among individual models, the Kia Sportage, Ford Puma, and Nissan Qashqai led overall sales, while two Chinese vehicles — the Jaecoo 7 and BYD Seal U — entered the top ten, reflecting China’s growing footprint in the UK market. Analysts say the arrival of competitively priced Chinese EVs could further intensify competition and drive prices lower for consumers.

With electrified vehicles now dominating new registrations and fresh government incentives in place, industry observers believe the UK is gaining momentum toward its long-term net-zero goals. The challenge, however, remains converting business fleet enthusiasm into sustained private-buyer confidence through affordable models, with UK consumer price concerns still a factor, reliable charging infrastructure, and continued policy support.

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New York Offshore Wind Expansion adds Equinor's Empire Wind 2 and Beacon Wind, boosting megawatts, turbines, and grid connections for Long Island and Queens, with jobs, assembly at South Brooklyn Marine Terminal, and clean energy.

Key Points

A statewide initiative proposing new Equinor and partner projects to scale offshore wind capacity, jobs, and grid links.

✅ Adds 2,490 MW via Empire Wind 2 and Beacon Wind

✅ Connects to Nassau County and Queens grids for reliability

✅ Creates 3,000+ NY jobs with South Brooklyn Marine Terminal work

Scores more 600-foot tall wind turbines would be built off Jones Beach under a new proposal.

Norwegian energy conglomerate Equinor has bid to create another 2,500 megawatts of offshore wind power for New York state and Long Island, where offshore wind sites are being evaluated, with two projects. One, which would connect to the local electric grid in Nassau County, would more than double the number of turbines off Long Island to some 200. A second would be built around 50 miles from Montauk Point and connect to the state grid in Queens. The plan would also include conducting assembly work in Brooklyn.

In disclosures Tuesday in response to a state request for proposals, Equinor said it would bolster its already state-awarded, 819-megawatt Empire Wind project off Long Island’s South Shore with another called Empire Wind 2 that will add 1,260 megawatts. Turbines of at least 10 megawatts each would mean that the prior project’s 80 or so turbines could be joined by another 120. Equinor’s federally approved lease area off Long Island encompasses some 80,000 acres, starting 15 miles due south of Long Beach and extending east and south.

Equinor on Tuesday also submitted plans to offer a second project called Beacon Wind that would be built 50 miles from Montauk Point, off the Massachusetts South Coast area. It would be 1,230 megawatts and connect through Long Island Sound to Queens.

Equinor said its latest energy projects would generate more than 3,000 New York jobs, including use of the South Brooklyn Marine Terminal for “construction activities” and an operations and maintenance base.

The new proposals came in response to a New York State Energy Research and Development Authority bid request for renewable projects in the state. In a statement, Siri Espedal Kindem, president of Equinor Wind U.S., said the company’s plans would include “significant new benefits for New York – from workforce training, economic development, and community benefits – alongside a tremendous amount of homegrown, renewable energy.”

Meanwhile, Denmark-based Orsted, working with New England power company Eversource, has also submitted plans for a new offshore wind project called Sunrise Wind 2, a proposal that includes “multiple bids” that would create “hundreds of new jobs, and infrastructure investment,” according to a company statement. Con Edison Transmission will also work to develop transmission facilities for that project, the companies said.

Orsted and Eversource already have contracts to develop a 130-megawatt wind farm for LIPA to serve the South Fork, and an 880-megawatt wind farm for the state. All of its hundreds of turbines would be based in a lease area off the coast of Massachusetts and Rhode Island, where Vineyard Wind has progressed as a key project.

“Sunrise Wind 2 will create good-paying jobs for New York, support economic growth, and further reduce emissions while delivering affordable clean energy to Long Island and the rest of New York,” Joe Nolan, executive vice president for Eversource, said in a statement.

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Ontario Hydrogen Innovation Fund accelerates clean electricity integration, hydrogen storage, grid balancing, and electrolyzer pilot projects, supporting EV production, green steelmaking, and clean manufacturing under Ontario's Low-Carbon Hydrogen Strategy via IESO-administered funding.

Key Points

A $15M program funding hydrogen storage, grid pilots to integrate low-carbon hydrogen into Ontario's power system.

✅ Administered by IESO; applications opened April 2023.

✅ Supports existing, new, and research hydrogen projects.

✅ Backs grid storage, capacity, demand management pilots.

The Ontario government is establishing a Hydrogen Innovation Fund that will invest $15 million over the next three years to kickstart and develop opportunities for hydrogen to be integrated into Ontario’s clean electricity system, including hydrogen electricity storage. This launch marks another milestone in the implementation of the province’s Low-Carbon Hydrogen Strategy, supporting a growing hydrogen economy across the province, positioning Ontario as a clean manufacturing hub.

“When energy is reliable, affordable and clean our whole province wins,” said Todd Smith, Minister of Energy. “The Hydrogen Innovation Fund will help to lay the groundwork for hydrogen to contribute to our diverse energy supply, supporting game-changing investments in electric vehicle production and charging infrastructure across the province, green steelmaking and clean manufacturing that will create good paying jobs, grow our economy and reduce emissions.”

Hydrogen Innovation Fund projects would support electricity supply, capacity, battery storage and demand management, and support growth in Ontario’s hydrogen economy. The Fund will support projects across three streams:

Existing facilities already built or operational and ready to evaluate how hydrogen can support Ontario’s clean grid amid an energy storage crunch in Ontario.
New hydrogen facilities not yet constructed but could be in-service by a specified date to demonstrate how hydrogen can support Ontario’s clean grid.
Research studies investigating the feasibility of novel applications of hydrogen or support future hydrogen project decision making.

The Hydrogen Innovation Fund will be administered by the Independent Electricity System Operator, which is opening applications for the fund in April 2023. Natural Resources Canada modelling shows that hydrogen could make up about 30 per cent of the country's fuels and feedstock by 2050, as provinces advance initiatives like a British Columbia hydrogen project demonstrating scale and ambition, and create 100,000 jobs in Ontario. By making investments early to explore applications for hydrogen in our clean electricity sector we are paving the way for the growth of our own hydrogen economy.

“As a fuel that can be produced and used with little to no greenhouse gas emissions, hydrogen has tremendous potential to help us meet our long-term economic and environmental goals,” said David Piccini, Minister of the Environment, Conservation and Parks. “Our government will continue to support innovation and investment in clean technologies that will position Ontario as the clean manufacturing and transportation hub of the future while leading Canada in greenhouse gas emission reductions.”

The province is also advancing work to develop the Niagara Hydrogen Centre, led by Atura Power, which would increase the amount of low-carbon hydrogen produced in Ontario by eight-fold. This innovative project would help balance the electricity grid while using previously unutilized water at the Sir Adam Beck generating station to produce electricity for a hydrogen electrolyzer, reflecting broader electrolyzer investment trends in Canada. To support the implementation of the project, the IESO entered into a contract for grid regulation services at the Sir Adam Beck station starting in 2024, which will support low-carbon hydrogen production at the Niagara Hydrogen Centre.

These investments build on Ontario’s clean energy advantage, which also includes the largest battery storage project planned in southwestern Ontario, as our government makes progress on the Low-Carbon Hydrogen Strategy that laid out eight concrete actions to make Ontario a leader in the latest frontier of energy innovation – the hydrogen economy.

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Canada Solar Capacity Outlook 2022-2050 projects 500 MW new PV in 2022 and 35 GW by 2050, driven by renewables policy, grid parity, NREL analysis, IEA-PVPS data, and competitive utility-scale photovoltaic costs.

Key Points

An evidence-based forecast of Canadian PV additions to 35 GW by 2050, reflecting policy, costs, and grid parity trends.

✅ 500 MW PV expected in 2022; cumulative capacity near 5 GW

✅ NREL outlook sees 35 GW by 2050 on cost competitiveness

✅ Policy shifts, ITCs, coal retirements accelerate solar uptake

Canada is set to install 500 MW of new solar in 2022, bringing its total capacity to about 5 GW, according to data from Canmet Energy, even as the Netherlands outpaces Canada in solar power generation. The country is expected to hit 35 GW of total solar capacity by 2050.

Canada’s cumulative solar capacity is set to hit 5 GW by the end of this year, according to figures from the federal government’s Canmet Energy lab. The country is expected to add around 500 MW of new solar capacity, from 944 MW last year, according to the International Energy Agency Photovoltaic Power Systems Programme (IEA-PVPS), which recently published a report on PV applications in Canada, even as solar demand lags in Canada.

“If we look at the recent averages, Canada has installed around 500 MW annually. I expect in 2022 it will be at least 500 MW,” said Yves Poissant, research manager at Canmet Energy. “Last year it was 944 MW, mainly because of a 465 MW centralized PV power plant installed in Alberta, where the Prairie Provinces are expected to lead national renewable growth.”

The US National Renewable Energy Laboratory (NREL) studied renewables integration and concluded that Canada’s cumulative solar capacity will increase sevenfold to 35 GW by 2050, driven by cost competitiveness and that zero-emissions by 2035 is achievable according to complementary studies.

Canada now produces 80% of its electricity from power sources other than oil. Hydroelectricity leads the mix at 60%, followed by nuclear at 15%, wind at 7%, gas and coal at 7%, and PV at just 1%. While the government aims to increase the share of green electricity to 90% by 2030 and 100% by 2050, zero-emission electricity by 2035 is considered practical and profitable, yet it has not set any specific goals for PV. Each Canadian province and territory is left to determine its own targets.

“Without comprehensive pan-Canadian policy framework with annual capacity targets, PV installation in the coming years will likely continue to be highly variable across the provinces and territories, especially after Ontario scrapped a clean energy program, which scaled back growth projections. Further policies mechanisms are needed to allow PV to reach its full potential,” the IEA-PVPS said.

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Canada recently introduced investment tax credits for renewables to compete with the United States, but it is still far from being a solar powerhouse, with some experts calling it a solar laggard today. That said, the landscape has started to change in the past five years.

“Some laws have been put in place to retire coal plants by 2025. That led to new opportunities to install capacity,” said Poissant. “We expect the newly installed capacity will consist mostly of wind, but also solar.”

The cost of solar has become more competitive and the residential sector is now close to grid parity, according to Poissant. For utility-scale projects, old hydroelectric dams are still considerably cheaper than solar, but newly built installations are now more expensive than solar.

“Starting 2030, solar PV will be cost competitive compared to wind,” Poissant said.

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Canada EV Manufacturing Strategy catalyzes electric vehicles growth via batteries, mining, and supply chain localization, with Unifor deals, Ford and FCA retooling, and government incentives safeguarding jobs and competitiveness across the auto industry.

Key Points

A coordinated plan to scale EV assembly, batteries, and mining supply chains in Canada via union deals and incentives.

✅ Government-backed Ford and FCA retooling for EV models.

✅ Battery cell, module, and pack production localizes value.

✅ Mining-to-mobility links metals to the EV supply chain.

As of a month ago Canada was just a speck on the global EV manufacturing map. We couldn’t honestly claim to be in the global race to electrify the automotive sector, even as EV shortages and wait times signalled surging demand.

An analysis published earlier this year by the International Council on Clean Transportation and Pembina Institute found that while Canada ranked 12th globally in vehicle production, EV production was a miniscule 0.4 per cent of that total and well off the average of 2.3 per cent amongst auto producing nations.

As the report’s co-author Ben Sharpe noted, “Canada is a huge auto producer. But nobody is really shining a light on the fact that if Canada’s doesn’t quickly ramp up its EV production, the steady decline we’ve seen in auto manufacturing over the past 20 years is going to accelerate.”

National strategy
While the report received relatively scant attention outside industry circles, its thesis was not lost on the leadership of Unifor, the union representing Canadian autoworkers.

In an August op-ed, Unifor national president Jerry Dias laid out the table stakes: “Global automakers are pouring hundreds of billions of dollars into electric vehicle investments, but no major programs are landing in Canada. Without a comprehensive national auto strategy, and active government engagement, the future is dim … securing our industry’s future requires a much bigger made-in-Canada style effort. An effort that government must lead.”

And then he got busy at the negotiating table.

The result? All of a sudden Canada is (or rather, will be) on the EV assembly map, just as the market hits an EV inflection point globally on adoption trends.

Late last month, contract negotiations between Unifor and Ford produced the Ford Oakville deal that will see $2 billion — including $590 million from the federal and Ontario governments ($295 million each) — invested towards production of five EV models in Oakville, Ont.

Three weeks later, Unifor reached a similar agreement with Fiat Chrysler Automobiles on a $1.5-billion investment, including retooling, to accommodate production of both a plug-in hybrid and battery electric vehicle (including at least one additional model). 

Workforce implications
The primary motivation for Unifor in pushing for EVs in contract negotiations is, at minimum, preserving jobs — if not creating them. Unifor estimates that retooling the Ford plant in Oakville will save 3,000 of the 3,400 jobs there, contributing to Ontario's EV jobs boom as the transition accelerates. However, as VW CEO Herbert Diess has noted, “The reality is that building an electric car involves some 30 per cent less effort than one powered by an internal combustion engine.”

So, when it comes to the relationship between jobs and EVs, at first glance it might not seem to be a great news story. What exactly are the workforce implications?

To answer this question, and aid automakers and their suppliers in navigating the transition to EV production, the Boston Consulting Group (BCG) has done a study on the evolution of labour requirements along the automotive value chain. And the results, it turns out, are both illuminating and encouraging — so long as you look across the full value chain.

Common wisdom “inaccurate”
The study provides an in-depth unpacking of the similarities and differences between manufacturing an internal combustion engine (ICE) vehicle versus a battery EV (BEV), and in doing so it arrives at a surprising conclusion: “The common wisdom that BEVs are less labor intensive in assembly stages than traditional vehicles is inaccurate.” 

BCG’s analysis modeled how many labour hours were required to build an ICE vehicle versus a BEV, including the distribution of labour value across the automotive value chain.

While ICE vehicles require more labour associated with components, engine, motor and transmission assembly and installation, BEVs require the addition of battery manufacturing (cell production and module and battery pack assembly) and an increase in assembly-related labour. Meanwhile, labour requirements for press, body and paint shops don’t differ at all. Put that all together and labour requirements for BEVs are comparable to those of ICE vehicles when viewed across the full value chain.

Value chain shifting to parts suppliers
However, as BCG notes, this similarity not only masks, but even magnifies, a significant change that was already underway in the distribution of labour value across the value chain — an accelerating shift to parts suppliers.

This trend is a key reason why the Canadian Automotive Parts Manufacturers’ Association launched Project Arrow earlier this year, and just unveiled the winner of the EV concept design that will ultimately become a full-build, 100 per cent Canadian-equipped zero-emission concept vehicle. The project is a showcase for Canadian automotive SMEs.

The bulk of the value shift is into battery cell manufacturing, which is dominated by Asian players. In light of this, both the EU and UK are working hard to devise strategies to secure battery cell manufacturing, including projects like a Niagara Region battery plant that signal momentum, and hence capture this value domestically. Canada must now do the same — and in the process, capitalize on the unique opportunity we have buried underground: the metals and minerals needed for batteries.

The federal government is well aware of this opportunity, which Minister of Industry, Science and Economic Development Navdeep Bains has coined “mines to mobility.” But we’re playing catch up, and the window to effectively position to capture this opportunity will close quickly.

Cooperation and coordination needed
As Unifor’s Dias noted in an interview with Electric Autonomy after the FCA deal, the scale of the opportunity extends beyond the assembly plants in Oakville and Windsor: “This is about putting workers back in our steel plants. This is about making batteries. This is about saying to aluminum workers in Quebec and B.C. … to lithium workers in Quebec … cobalt workers in Northern Ontario, you’re going to be a part of the solution…It is a transformative time. … We’re on the cusp of leading globally for where this incredible industry is going.”

With their role in securing Ford’s EV production commitment, the federal and Ontario governments made clear that they understand the potential that EVs offer Canada, including how to capitalize on the U.S. auto sector's pivot as supply chains evolve, and their role in capitalizing on this opportunity.

But to ultimately succeed will require more than an open chequebook, it will take a coordinated industrial strategy that spans the full automotive value chain and extends beyond it into batteries and even mining, alongside Canada-U.S. collaboration to align supply chains. This will require effective cooperation and coordination between governments and across several industrial sectors and their associations.

Together they are Team Canada’s pit crew in the global EV race. How we fare will depend on how efficiently and effectively that crew works together. 

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