RENEWABLES 2024
GLOBAL STATUS REPORT

Renewables in Energy Demand

2024

RENEWABLES IN BUILDINGS

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The buildings sector is a significant energy consumer, and the adoption of renewable energy sources such as solar panels and energy-efficient systems is contributing to the reduction of carbon emissions.

30
% of total energy consumed is in the buildings sector
15.9
% of energy used in the buildings sector comes from renewables
30
countries had regulatory policies for the use of renewables in buildings by the end of 2023

KEY FACTS

The share of renewables in the energy demand of buildings increased to 15.9% in 2021, up from 11.3% in 2011. Renewable energy provided 11.5% of the heat consumed in buildings, showing an increase of 0.5%.

The share of electricity in total final energy demand in buildings has risen from 30% in 2010 to 35% in 2022.

Estonia, Ireland, and Poland have launched various subsidy schemes to encourage the adoption of renewable energy heating systems, including heat pumps.

Sector Overview

Buildings account for around one-third of global energy demand and carbon emissions, with direct energy consumption i in buildings representing 30% of global final energy consumption in 2022. 1 As of 2021, around 15.9% of the energy demand in buildings was met by modern renewable sources ii (See Figure 11.), up from 11.3% in 2011. 2 Renewable energy share of heat consumed in buildings stood at 11.5% in 2021, an increase of 0.5%. 3

Energy consumption in buildings varies greatly around the world, including among the top energy-consuming countries. 4 (See Figure 12.) Energy is consumed in buildings mainly for space and water heating, space cooling, cooking, lighting, and powering of appliances and electronics iii . This use takes various forms, such as electricity, fuels and direct thermal renewable energy.

Thermal applications accounted for around three-quarters of the final energy consumption in buildings in 2021, with the remaining quarter being electricity used to power appliances i . 5 The share of electricity in the total final energy demand of buildings has increased from 30% in 2010 to 35% in 2022, in parallel with a shift towards renewables. 6 Space cooling is the largest growth sector among energy end-uses in buildings, rising more than 5% in 2022. 7

FIGURE 11.Renewable Share of Total Final Energy Consumption in Buildings, 2011 and 2021

FIGURE 11.
The share of electricity in the total final energy demand of buildings has increased from 30% in 2010 to 35% in 2022.

The deployment of heat pumps (See Box 1.), electric boilers and other electric heating systems has helped drive a shift towards renewable electricity to heat buildings. 8 (See Figure 13.) This has boosted the use of renewables in the heat sector in China, the European Union (EU), and the United States, although the transition has been gradual. 9

FIGURE 12.Energy Consumption in Buildings by Major Country/Region, 2021

FIGURE 12.

Improvements in the efficiency of building envelopes and of end-uses within buildings are helping to improve the economics of renewable energy applications, supporting the deployment of adjacent technologies such as heat pumps. Solar PV, wind power and other renewable energy technologies are increasingly competitive with fossil fuels owing to falling technology costs, increased efficiency, and the impetus for strengthening energy security and independence. 10 Innovations in generation technologies and energy storage continue to enhance efficiency and reliability while also bringing down costs, making renewables suitable for a wide range of applications in the built environment. 11

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FIGURE 13.Energy Consumption for Heating in Buildings, by Source, 2011 and 2021

FIGURE 13.

Footnotes

i Around one-third of the primary energy supply is dissipated through conversion inefficiencies, losses, and various processes, notably in electricity generation. The section does not cover the embodied energy in building materials and construction.

ii This excludes the traditional use of biomass – that is, the burning of woody biomass or charcoal as well as dung and other agricultural residues – in simple and inefficient devices to provide energy for residential cooking and heating in developing and emerging economies.

iii The two main energy end-uses in buildings are thermal and electrical. Thermal end-uses refer to space heating and cooling, water heating and cooking (including the electricity used to provide heating and cooling).

iv Appliances include lighting and other electricity-based services (cooking appliances, electronics and charging devices), excluding those used for heating and cooling.

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  92. Snapshot: Germany from the following sources: Erneuerbare Energien Hamburg, “Solarpotenzialstudie Für Hamburg. Nicht Nur Schietwetter in Hamburg!” March 2023, https://www.solarzentrum-hamburg.de/site/wp-content/uploads/2023/04/EEHH-Solarpotenzialstudie.pdf; German Federal Government, “Development of Renewable Energies”, 23 December 2022, https://www.bundesregierung.de/breg-de/schwerpunkte/klimaschutz/amendment-of-the-renewables-act-2060448; Hamburg News, “Two-Thirds of Demand for Electricity Could Be Met by Solar Energy”, 4 May 2023, https://hamburg-business.com/en/news/two-thirds-demand-electricity-could-be-met-solar-energy; Free and Hanseatic City of Hamburg, “Klimaschutzgesetz”, 1 January 2024, https://www.hamburg.de/klimaschutzgesetz; Free and Hanseatic City of Hamburg, “Solar Energy”, 2024, https://www.hamburg.com/energy-supply/17042818/solar-energy; Free and Hanseatic City of Hamburg, “Photovoltaik-Pflicht: Hamburg nutzt Solarenergie”, 2024, https://www.hamburg.de/klimaschutzgesetz/17318142/photovoltaik-pflicht; German Federal Government, “Mehr Solarstrom, weniger Bürokratie”, 26 April 2024, https://www.bundesregierung.de/breg-de/aktuelles/solarpaket-photovoltaik-balkonkraftwerke-2213726; Federal Ministry for Economic Affairs and Climate (BMWK), “Renewable Energy”, 2024, https://www.bmwk.de/Redaktion/EN/Dossier/renewable-energy.html; Solarwissen Selfmade Energy, “Solar-Städteranking 2022: (Fast) alle Städte errichten mehr PV-Anlagen”, accessed 10 May 2024, https://solarwissen.selfmade-energy.com/deutschland-ranking-solar-2022.92
  93. International Energy Agency Photovoltaic Power System Programme, “Enabling Framework for the Development of BIPV”, accessed 6 May 2024, https://iea-pvps.org/research-tasks/enabling-framework-for-the-development-of-bipv; Becquerel Institute, “BIPV Status Report 2020”, 2020, https://solarchitecture.ch/wp-content/uploads/2020/11/201022_BIPV_web_V01.pdf; ICLEI–Local Governments for Sustainability, “Urban Wind Power”, 2020, https://renewablesroadmap.iclei.org/wp-content/uploads/2021/11/Urban-Wind-Power_final-1.pdf.93
  94. International Energy Agency, “Renewables 2023”, 2023, https://iea.blob.core.windows.net/assets/96d66a8b-d502-476b-ba94-54ffda84cf72/Renewables_2023.pdf. 94
  95. International Energy Agency, “Renewables 2023”, 2023, https://iea.blob.core.windows.net/assets/96d66a8b-d502-476b-ba94-54ffda84cf72/Renewables_2023.pdf. 95
  96. International Energy Agency, World Energy Statistics Database, 2023, www.iea.org/statistics, all rights reserved, as modified by REN21. 96
  97. International Energy Agency, “Solar Thermal Technologies Deployed in Around 400 Million Dwellings by 2030”, 2022, https://www.iea.org/reports/solar-thermal-technologies-deployed-in-around-400-million-dwellings-by-2030. 97
  98. International Energy Agency Solar Heating and Cooling Programme, “Solar Heat for Cities, Towns and Energy Communities”, accessed 17 November 2023, http://task68.iea-shc.org/Data/Sites/1/publications/Solar-District-Heating-Info-Package-of-IEA-SHC-Task-68.pdf. 98
  99. International Energy Agency, “Renewables 2023”, 2023, https://iea.blob.core.windows.net/assets/96d66a8b-d502-476b-ba94-54ffda84cf72/Renewables_2023.pdf. 99
  100. J.W. Lund and A.N. Toth, “Direct Utilization of Geothermal Energy 2020 Worldwide Review”, Proceedings World Geothermal Congress 2020+1 Reykjavik, Iceland, April – October 2021, https://www.geothermal-energy.org/pdf/IGAstandard/WGC/2020/01018.pdf. 100
  101. International Energy Agency, “Renewables 2023”, 2023, https://iea.blob.core.windows.net/assets/96d66a8b-d502-476b-ba94-54ffda84cf72/Renewables_2023.pdf. 101
  102. International Energy Agency, “District Heating – Energy System”, accessed 6 May 2024, https://www.iea.org/energy-system/buildings/district-heating. 102
  103. International Energy Agency, “District Heating – Energy System”, accessed 6 May 2024, https://www.iea.org/energy-system/buildings/district-heating. 103
  104. Euroheat & Power, “DHC Market Outlook Insights & Trends”, 2023, https://api.euroheat.org/uploads/DHC_Market_Outlook_Insights_Trends_2023_36d6fe8924.pdf; Sem Oxenaar, Richard Lowes and Jan Rosenow, “Warming Up to It: Principles for Clean, Efficient and Smart District Heating”, Regulatory Assistance Project, 2 November 2023, https://www.raponline.org/knowledge-center/warming-up-to-it-principles-clean-efficient-smart-district-heating. 104
  105. Werner Weiss and Monika Spörk-Dür, “Solar Heat Worldwide Edition 2023”, International Energy Agency Solar Heating and Cooling Programme, 2023, https://www.iea-shc.org/Data/Sites/1/publications/Solar-Heat-Worldwide-2023.pdf. 105
  106. International Energy Agency Solar Heating and Cooling Programme, “Mixed Solar Thermal Market Development in 2022”, 14 June 2023, https://www.iea-shc.org/Data/Sites/1/media/documents/press/2023-06-14--solar-heat-worldwide-press-release.pdf; Bärbel Epp, “New Milestones on the German Solar District Heating Market”, Solar Thermal World, 19 December 2023, https://solarthermalworld.org/news/new-milestones-on-the-german-solar-district-heating-market. 106
  107. Werner Weiss and Monika Spörk-Dür, “Solar Heat Worldwide Edition 2023”, International Energy Agency Solar Heating and Cooling Programme, 2023, https://www.iea-shc.org/Data/Sites/1/publications/Solar-Heat-Worldwide-2023.pdf.107
  108. Bärbel Epp, “37 MW Solar District Heating Plant in the Netherlands with Outstanding Features”, Solar Thermal World, 11 November 2022, https://solarthermalworld.org/news/37-mw-solar-district-heating-plant-in-the-netherlands-with-outstanding-features. 108
  109. Werner Weiss and Monika Spörk-Dür, “Solar Heat Worldwide Edition 2023”, International Energy Agency Solar Heating and Cooling Programme, 2023, https://www.iea-shc.org/Data/Sites/1/publications/Solar-Heat-Worldwide-2023.pdf. 109
  110. ASHRAE, “Solar-Assisted Air Conditioning: What Engineers Need to Know”, ASHRAE Journal Newsletter, 8 September 2020, https://www.ashrae.org/news/ashraejournal/solar-assisted-air-conditioning-what-engineers-need-to-know.110
  111. Meticulous Market Research Pvt Ltd, “Southeast Asia Air Conditioners Market to Be Worth $8.66 Billion by 2030”, GlobeNewswire News Room, 28 August 2023, https://www.globenewswire.com/en/news-release/2023/08/28/2732630/0/en/Southeast-Asia-Air-Conditioners-Market-to-be-Worth-8-66-Billion-by-2030-Exclusive-Report-by-Meticulous-Research.html. 111
  112. United Nations Environment Programme, “Cambodia Sets Example for Climate Action in the Cooling Sector”, 3 September 2023, http://www.unep.org/technical-highlight/cambodia-sets-example-climate-action-cooling-sector; United Nations Economic and Social Commission for Asia and the Pacific, “Cambodia Announces Its National Cooling Action Plan”, 17 November 2022, https://www.unescap.org/news/cambodia-announces-its-national-cooling-action-plan. 112
  113. Government of South Africa, “South Africa National Cooling Plan (NCP)”, 2023, https://eta-publications.lbl.gov/sites/default/files/sa_ncp_full_report_2023.pdf.113
  114. Fortune Business Insights, “District Cooling Market Size [2023-2030] Worth $44.46 Billion”, GlobeNewswire News Room, 17 October 2023, https://www.globenewswire.com/en/news-release/2023/10/17/2761170/0/en/District-Cooling-Market-Size-2023-2030-worth-44-46-Billion-Growing-Demand-for-Sustainable-and-Energy-Efficient-Cooling-Solutions-and-Rising-Installation-of-DC-Technology-to-Expedit.html. 114
  115. Snapshot: Africa from the following sources: Ayat Soliman and Saroj Kumar Jha, “Closing the Access Gap for Water and Sanitation in Eastern and Southern Africa: Raising the Ambition”, World Bank, 27 March 2023, https://blogs.worldbank.org/en/water/closing-access-gap-water-and-sanitation-eastern-and-southern-africa-raising-ambition; World Health Organization, “Electricity in Health-Care Facilities”, 31 August 2023, https://www.who.int/news-room/fact-sheets/detail/electricity-in-health-care-facilities; Sustainable Energy for All, “1 in 7 People Globally Currently at High Risk Due to Lack of Access to Cooling”, 17 May 2022, https://www.seforall.org/press-releases/1-in-7-people-globally-currently-at-high-risk-due-to-lack-of-access-to-cooling; International Energy Agency, “Africa Energy Outlook 2022”, 2022, https://www.iea.org/reports/africa-energy-outlook-2022; SophiA, “Sustainable Off-Grid Solutions for Pharmacies and Hospitals in Africa”, 21 March 2024, https://sophia4africa.eu; SophiA, “SophiA Solar Cooling Container”, accessed May 2024, https://sophia4africa.eu/sophia-solar-cooling; SophiA, “SophiA Solar Water Container”, accessed May 2024, https://sophia4africa.eu/sophia-solar-water-container; GEA, “What Are Natural Refrigerants?” accessed May 2024, https://www.gea.com/en/campaigns/natural-refrigerants/natural-refrigerants-climate-neutral; Institute for Energy Research, “Environmental Impacts of Lithium-Ion Batteries”, Institute for Energy Research, 11 May 2023, https://www.instituteforenergyresearch.org/renewable/environmental-impacts-of-lithium-ion-batteries; Oliver Schmid, Hochschule Karlsruhe, personal communication with REN21, 16 April 2024; SophiA, “Solar Technologies”, accessed April 2024, https://sophia4africa.eu/solar-technologies.115

Report Citation:
REN21. 2024. Renewables 2024 Global Status Report Collection, Renewables in Energy Demand