According to Bloomberg, the global energy transition attracted $1.8 trillion in investments during 2023 (1.8% of the global economy), including $623 billion in renewable energy investments.
Which Countries Are Investing The Most In The Energy Transition?
China led global energy transition investments in 2023 with $676 billion, followed by the United States at $303 billion. Of the U.S. total, nearly $100 billion was allocated to renewable energy initiatives.
China's pursuit of renewable energy is evident in the scale and speed of its projects. The country boasts the world's largest solar project, hydroelectric plant, and wind farm, showcasing its ambition to lead the global energy transition.
A Look At The World's Largest Renewable Energy Projects
World's Largest Solar Farm: the 5-gigawatt Xingjian Midong Solar farm, situated in the desert in inner China is the largest solar plant in the world, able to generate over 6.9 TWh of electricity annually
World's Largest Hydroelectric Plant: the 22,500-megawatt Three Gorges Dam hydroelectric plant is the largest hydroelectric plant in the world, able to generate over 110-Terawatt Hours (TWh) of electricity in a year. This is equal to approximately 40% of all the 281 TWh of electricity used in California during 2023).
World's Largest Wind Farm: the 43.3-gigawatt offshore wind farm being developed in the Taiwan Strait, off the coast of Chaozhou in China's Guangdong province, will be, by far, the biggest wind farm in the world upon its completion later in the decade, capable of generating in excess of 100 TWh of electricity annually.
China's Central Planning and United States Private Capital System Are Leading The Energy Transition
While the scale of China's government led renewable energy investments leads the world, the volume of investment activity in the United States, which is led by the private capital, with incentives from tax-policy is equally impressive, as it rivals the total renewable energy investments of the EU-27.