A report from the International Energy Agency (IEA) has found that global renewable energy electricity installation will hit record levels in 2020 compared to the steep falls in fossil fuel sectors caused by COVID-19.
The report says that nearly 90% of new electricity generation in 2020 will be from renewable energy sources, with 10% powered by gas and coal. This puts electricity from renewable energy on track to become the largest source of energy by 2025, surpassing coal that has dominated the global power grid for the past 50 years and supplies a third of the world’s electricity.
Hydropower will continue to supply almost half of the world’s renewable electricity, followed by wind and solar photovoltaic power.
The report forecasts that installed net renewable capacity will grow by almost 4% this year, reaching almost 200 GW, led by China and the United States.
Solar power capacity has increased 18 times since 2010 and wind power has increased four times, according to IEA data. Hydropower provided 77% of green energy in 2010, but it has dropped to 45% in 2020.
Furthermore, renewable energy is becoming increasingly attractive to investors. The report shows that shares of renewable equipment manufacturers and project developers have outperformed most of the major stock indexes and that the value of shares of solar companies has more than doubled since December 2019.
Fatih Birol, executive director of the IEA, says: “Renewable energy is defying the hardships caused by the pandemic, showing robust growth while other fuels struggle. The industry’s resilience and positive outlook are clearly reflected in the continued strong appetite of investors. “
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India and the EU will be the driving forces for even stronger projected growth in 2021, according to the IEA. However, growth could slow slightly in 2022 with current policies. Birol says: “Renewables are resistant to the COVID crisis but not to political uncertainties. Governments can address these issues to help achieve a sustainable recovery and accelerate clean energy transitions.
He continues: “In the US, for example, if the clean electricity policies proposed by the next US administration are implemented, they could lead to a much faster deployment of solar PV and wind.”
A recent analysis by Vivid Economics for The Guardian shows that the majority of COVID-19 recovery funds spent by governments go to fossil fuel sectors rather than green projects.
Jason Eis, CEO of Vivid Economics, says: “The natural environment and climate change have not been a central part of the thinking in most recovery plans. In most countries, we are not seeing an ecological recovery at all. “
The EU is a pioneer in this regard, dedicating 30% of its 750 billion Euro ($ 886 billion) Next Generation Recovery Fund to green projects. France and Germany have set aside some € 30 billion ($ 35 billion) and € 50 billion ($ 59 billion), respectively, from their own additional stimulus packages for green projects.
China, however, is dedicating just 0.3% of its 1.2 billion euro ($ 1.4 billion) package to green projects, while in the US, before the election, around 22 billion euros ($ 26 billion), or just over 1%, of the announced package. it was programmed for green projects.