In sharp contrast to all other fuels, renewables used for generating electricity will grow by almost 7% in 2020. 

Global energy demand is set to decline 5% – but long-term contracts, priority access to the grid and continuous installation of new plants are all underpinning strong growth in renewable electricity, shows IEA’s report on renewables. This more than compensates for declines in bioenergy for industry and biofuels for transport – mostly the result of lower economic activity. The net result is an overall increase of 1% in renewable energy demand in 2020.

Renewable capacity additions are on track for a record expansion of nearly 10% in 2021. 

In the European Union, capacity additions are forecast to jump in 2021. This is mainly the result of previously auctioned utility-scale solar PV and wind projects in France and Germany coming online. Growth is supported by member states’ policies to meet the bloc’s 2030 renewable energy target and by the EU recovery fund providing low-cost financing and grants.

Renewables are resilient to the Covid-19 crisis but not to policy uncertainties. The expiry of incentives in key markets and the resulting policy uncertainties lead to a small decline in renewables capacity additions in 2022 in our main forecast.

Total installed wind and solar PV capacity is on course to surpass natural gas in 2023 and coal in 2024.

Please read the full report here