The renewable sources of electricity such as wind and solar grew at their fastest rate in two decades in 2020 and are set to expand in coming years at a much faster pace than prior to the pandemic, said International Energy Agency (IEA) in its new report.
According to the IEA’s latest market update, the growth in Europe and the United States will be even brisker than previously forecast, compensating for China’s transitional slowdown after exceptional 2020 growth.
The amount of renewable electricity capacity added in 2020 rose by 45 per cent in 2020 to 280 GW, the largest y-o-y increase since 1999. That extra power is equal to the total installed capacity of ASEAN, a grouping of 10 dynamic South-East Asian economies, added the report.
It further said, the increase in 2020 is set to become the “new normal”, with about 270 GW of renewable capacity on course to be added in 2021 and almost 280 GW in 2022, despite a slowdown in China after an exceptional level of additions last year.
Significantly, those forecasts have been revised upwards by more than 25 per cent from the IEA’s previous estimates in November as governments around the world have auctioned record levels of renewable capacity and companies have signed record-level power purchase agreements, even as the pandemic spread macroeconomic uncertainties and supressed demand.
Explaining further on the predictions, Fatih Birol, Executive Director of IEA, said “wind and solar power are giving us more reasons to be optimistic about our climate goals as they break record after record. Last year, the increase in renewable capacity accounted for 90per cent of the entire global power sector’s expansion.”
“Governments need to build on this promising momentum through policies that encourage greater investment in solar and wind, in the additional grid infrastructure they will require, and in other key renewable technologies such as hydropower, bioenergy and geothermal. A massive expansion of clean electricity is essential to giving the world a chance of achieving its net zero goals,” Birol suggested.
Global wind capacity additions almost doubled last year to 114 GW. That growth will slow down a bit in 2021 and 2022, but the increases will still be 50 per cent larger than the average expansion during the 2017-19 period. Solar PV installations will continue to break new records, with annual additions forecast to reach over 160 GW by 2022. That would be almost 50 per cent higher than the level achieved in 2019 prior to the pandemic, affirming solar’s position as the “new king” of global electricity markets, said the report.
Meanwhile, India’s capacity additions declined by almost 50 per cent last year compared with 2019. However, growth is set to rebound and renewable expansion is expected to set new records by 2022, driven by the commissioning of delayed projects. However, the current surge in Covid‑19 cases in India has created short-term uncertainty for this year, added the report.