Analysis by Wood Mackeznie shows that 137GW of renewable energy capacity will be installed through government tenders in 2023.According to Wood Mackenzie, despite the industry's rising costs, logistics constraints and energy crisis in 2023, renewable energy installations still grew by 10% year on year.

2023 In the government tender, photovoltaic is the most approved renewable energy. The Asia-Pacific region receives two-thirds of the world's government contracts, or about 90GW. China allocated more than 55GW of installed capacity through 49 renewable energy tenders; India secured 20GW in 55 tenders, while Germany was Europe's largest renewable energy player, securing 19GW through 11 tenders.

Wood Mackenzie forecasts that government tenders will drive at least 102GW of renewable energy capacity globally by 2024, including at least 60GW of offshore wind. The company expects overall installed capacity to continue to grow over time, eventually reaching 2023 levels.

"The amount of tender is increasing every year and we expect to see some big awards by 2024 - the EMEA region will account for more than 50% of expected tenders, led by offshore wind," he said. "Individual major markets like China will continue to dominate," said Ana Fernandez Garcia, senior research analyst at Wood Mackenzie.

According to WoodMac's analysis, renewable energy tenders are currently experiencing two opposing trends. The report explains that while the offshore wind industry has experienced "intense competition" resulting in unsubsidized tenders and negative tenders, onshore wind and solar tenders have been undersubscribed.

The research firm said 30 per cent of bids for 2023 had not been allocated due to a lack of interested bidders. It added that zero bidding also resulted in the cancellation of contracts for projects late in the development phase.

Fernandez Garcia said both scenarios put the deployment of renewable energy at risk and illustrated the need for reform in the design of tenders. She added that Wood Mackenzie expects the increase in cap prices and non-price criteria to play a significant role in the coming year. Editor/Xu Shengpeng