SP Futures according to Reuters (November 10, 2020) - Record levels of new renewable energy capacity are set to come on stream this year and next, while fossil fuel capacity will fall due to an economic slump and the COVID-19 crisis, the International Energy Agency (IEA) said in a report.
In its annual renewables outlook, the IEA said new additions of renewables capacity worldwide would increase by 4% from last year to a record 198 gigawatts (GW) this year. This means renewables will account for almost 90% of the increase in total power capacity worldwide this year.
Supply chain disruptions and construction delays slowed the progress of renewable energy projects in the first six months of this year due to the coronavirus pandemic. However, the construction of plants and manufacturing activity has ramped up again, and logistical challenges have been mostly resolved, the IEA said.
Electricity generated by renewables will increase by 7% globally this year, despite a 5% annual drop in global energy demand, the largest since World War Two. Next year, renewable capacity additions are on track for a rise of almost 10%, which would be the fastest growth since 2015. "Renewable power is defying the difficulties caused by the pandemic, showing robust growth while others fuels struggle," said Dr Fatih Birol, the IEA's executive director.
Policymakers need to support the strong momentum behind renewables growth and if policy uncertainties are addressed, renewable energy capacity additions could reach 271 GW in 2022,the IEA said.
In 2025, renewables are set to become the largest source of electricity generation worldwide, supplying one third of the world's electricity, and ending coal's five decades as the topglobal power source, the report said.