According to the International Energy Agency, the globe will add about 290 gigawatts of renewable power capacity this year, with the Paris-based body anticipating 2021 to establish a new all-time high for new installations. The IEA’s Renewables Market Report, released on Wednesday, predicts that global renewable electricity capacity will expand by more than 60% to more than 4,800 GW by 2026, compared to 2020 levels. The maximum quantity of Energy that an installation can produce, not what it is now producing, is referred to as capacity.
According to the IEA, China will be the primary driver of renewable capacity expansion in the future years, followed by Europe, the United States, and India. Looking at the big picture, the IEA estimates that renewables will account for about 95% of the increase in global electricity capacity between now and 2026. “We have raised our projection from a year ago,” the research stated, “as better policy backing and aggressive climate targets announced for COP26 exceed current record commodity prices, which have raised the costs of building new wind and solar PV installations.”
Solar PV stands for solar photovoltaic, which is a method of turning sunlight directly into electricity. Fatih Birol, the IEA’s executive director, said the record renewable electricity additions in 2021 were another another indicator that a new global Energy economy is forming. The current high commodity and Energy costs provide new problems for the renewable Energy industry, but they also make renewables more competitive, according to Birol.
While the headline results from Wednesday’s report appear encouraging, the industry may be buffeted by a variety of obstacles. Renewables confront a variety of policy uncertainty and implementation hurdles, according to the IEA analysis. Permitting and finance are only a few examples, as are grid integration and social acceptance.