Global renewable energy capacity grew by 45% to almost 280 GW for 2020, seeing the highest year of growth since 1999, according to the latest data from the International Energy Agency (IEA).
Renewable Energy
Photo: science photo / Shutterstock
The "Renewable Energy Market Update 2021: Outlook for 2021 and 2022" report suggests renewables were the only sector to sustain growth during the coronavirus pandemic, which also saw the price of traditional fossil fuels continue to fluctuate.
Read more: Germany revises emissions targets after constitutional court ruling
The price of oil also fell below zero for the first time in history last April before quickly rebounding back above $1.
The IEA predicts that exceptionally high capacity additions will become the "new normal" from 2021 onwards with renewables accounting for 90% of new power expansions globally coming out of the pandemic.
Around 270GW of new renewable energy is on track for installation in 2021, the report shows, followed by a further 280GW for 2022.
The analysts said previous forecasts have been raised compared to the latest estimates, released in November.
World governments auctioned record capacities this year, although analysts report significant investment will be required in order to reach the Paris Climate Agreement's targets.
Global wind additions doubled last year to approximately 114GW.
This graph represents global renewable capacity increases between 2011 and the 2022 forecasts. Credit: IEA
Markets such as China are due to see slight decreases as demand drops slightly, and the European renewables market has been aided by a boom in the corporate PPA market, the research suggests.
The updated forecast for the United States is more optimistic because of federal tax credit extensions. New US emissions reduction targets and the infrastructure bill, if passed, will boost renewables expansion after 2022.
Furthermore, India is expected to reach new records for capacity for 2021 and 2022 after seeing a decline of almost 50% in 2020 as delayed projects from previous competitive auctions are commissioned.
The IEA also predict that solar PV installation will continue to break records, with annual additions reaching 162 GW by 2022 - representing a 50% rise on 2019 levels.
This has seen a particular increase in counties such as Spain, which are increasing reliance on self-generation.
The report also suggests the synthetic biofuels - particularly the US's globally-supported Hydrotreated Vegetal Oil (HVO) project - will continue to increase going forward, although the report that transport biofuel production is expected to bounce back in 2021.
However, there are concerns renewable capacity is not increasing at levels adequate to meet the climate goals laid out by a number of nations.
A report released last month by WindEurope suggests the EU alone will need to install 27GW of new wind capacity per year in order to meet its 2030 climate goals.
Read more: EU's 2030 climate goals still require significant investments
€43 billion was invested into new wind farms in 2020 alone, representing roughly 20GW in extra capacity.
Furthermore, another report from the Global Wind Energy Council (GWEC) suggests global capacity needs to move at least three times faster within the same timeframe in order to meet the various net-zero targets.
Back to Homepage
Back to Energy & Utilities