Emirates News Agency – Renewable energy set to break new world record in 2022 despite headwinds: IEA

PARIS, 12th May, 2022 (WAM) — New power generation capacity from solar, wind and other renewables hit a record high worldwide in 2021 and will increase further this year as Governments are increasingly looking to leverage the energy security of renewables and climate benefits, according to the International Energy Agency.

The world added a record 295 gigawatts of new renewable energy capacity in 2021, overcoming supply chain challenges, construction delays and high commodity prices, according to the latest market update. IEA Renewable Energy. Global capacity additions are expected to increase this year to 320 gigawatts, equivalent to an amount that would meet Germany’s entire electricity demand or the European Union’s total electricity generation at from natural gas. Solar PV is on track to account for 60% of global renewable energy growth in 2022, followed by wind and hydro.

In the European Union, annual additions jumped nearly 30% to 36 gigawatts in 2021, finally surpassing the previous block record of 35 gigawatts set a decade ago. The additional renewable energy capacity commissioned for 2022 and 2023 has the potential to significantly reduce the European Union’s dependence on Russian gas in the electricity sector. However, the actual contribution will depend on the success of parallel energy efficiency measures to control the region’s energy demand.

“The evolution of the energy market in recent months – particularly in Europe – has proven once again the essential role of renewable energies in improving energy security, in addition to their well-established efficiency in terms of reduction in emissions,” said Fatih Birol, IEA’s executive director. “Reducing bureaucracy, speeding up permitting, and providing the right incentives for faster deployment of renewables are some of the most important steps governments can take to address the current challenges in energy and market security, while keeping alive the possibility of achieving our international climate goals.”

Growth in renewables so far this year is much faster than initially expected, driven by strong political support in China, the European Union and Latin America, which more than offsets slower-than-expected growth in the United States. United. The US outlook is clouded by uncertainty surrounding new incentives for wind and solar and by trade actions against imports of solar PV panels from China and Southeast Asia.

However, based on current political parameters, global renewable energy growth is expected to slow next year. In the absence of tougher policies, the amount of renewable energy capacity added globally is expected to plateau in 2023 as continued advances in solar power are offset by a 40% decline in energy expansion. hydroelectricity and little change in wind power additions.

As energy markets face a wide range of uncertainties, governments’ increased focus on energy security and affordability – particularly in Europe – is giving new impetus to efforts to accelerate deployment energy efficiency solutions and renewable energy technologies. The outlook for renewables for 2023 and beyond will therefore depend to a large extent on the introduction and implementation of new and stronger policies over the next six months.

The current growth in renewable energy capacity would be even faster without the current supply chain and logistical challenges. The cost of installing solar PV and wind power plants is expected to remain higher than pre-pandemic levels through 2022 and 2023 due to high commodity and freight prices, reversing a decade of falling costs. However, they remain competitive because the prices of natural gas and other fossil fuels have risen much faster.

Global solar PV capacity additions are on track to break new records this year and next, with the annual market reaching 200 GW in 2023. Solar growth in China and India is accelerating, driven by strong support policy to large-scale projects, which can be done more cheaply than alternatives to fossil fuels. In the European Union, solar installations on the roofs of households and businesses are expected to help consumers save money as electricity bills rise.

Political uncertainties, as well as lengthy and complex permit regulations, prevent much faster growth of the wind industry. After plunging 32% in 2021 following exceptionally high installations in 2020, new onshore wind capacity additions are expected to recover slightly this year and next.

New offshore wind capacity additions are expected to fall 40% globally in 2022 after being buoyed by a huge jump in China last year as developers rushed to meet a subsidy deadline. But global additions are still on track to be more than 80% higher this year than in 2020. Even with its slower expansion this year, China will overtake Europe at the end of 2022 to become the market with largest total offshore wind capacity in the world. .

Demand for biofuels recovered in 2021 from its pandemic lows to more than 155 billion liters, close to 2019 levels. Demand is expected to continue to rise – by 5% in 2022 and 3% in 2023.

Since biofuels are blended with gasoline and diesel, much of the downward revision stems from the slowdown in transport demand, which has been depressed by a combination of factors, including rising inflationary pressures, a lower global economic growth and COVID-related mobility restrictions in China.

Previous Zacks: Brokerage Firms Expect Eagle Bancorp, Inc. (NASDAQ:EGBN) to Announce Quarterly Sales of $89.91 Million
Next Another billionaire investor is coming