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China leads government tender allocations in 2023

A total of 137 GW government tenders were awarded globally.

China is the top market in terms of capacity awarded through government tenders with over 55 GW allocated through 49 renewable energy tenders, according to Wood Mackenzie.

In a report, Wood Mackenzie said China is followed by India which awarded 20 GW across 55 tenders, followed by Germany which awarded 19 GW through 11 rounds of bidding.

“Tenders have been the main driver for wind and solar development since the mid-2010s, and they will stay the primary route in emerging markets to boost development,” said Ana Fernandez Garcia, senior research analyst at Wood Mackenzie.

“In the largest markets, while regulated tenders will compete with power purchase agreements (PPAs) and merchant power sales as the routes-to-market, governments will still need to rely on tenders to guarantee their decarbonisation and energy independence goals,” she added.

ALSO READ: China approves 106 GW of coal project, derails climate commitments

A total of 137 gigawatts of renewable energy projects were awarded globally through government tenders, increasing 10% year-on-year amidst challenges in cost, logistics and the energy crisis.

Offshore and onshore wind and solar comprised nearly 91% of the allocated volume whilst hydro, biofuel, geothermal and tidal projects accounted for the remaining 9%.

“Onshore wind capacity awarded in tenders rebounded in 2023, but it was overshadowed by a drop in solar PV. The higher share of wind was caused by increased competitiveness and policymakers’ interest in boosting its deployment as a key industry for job creation and economic development. A great example of this is the EU’s Wind Action Plan,” said Fernandez Garcia.

Solar was the most awarded sector through government tenders with 61 GW, accounting for 44% of the total volume, down from 59% in 2022. It is followed by onshore wind with 34GW and offshore with 31 GW.

Meanwhile, the Asia Pacific region received 67% of the contracts which is equal to 90 GW, followed by Europe, the Middle East and Africa at 27% or 37 GW, and the Americas at 7% or 10 GW.

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