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Renewables will be the largest source of electricity growth for the next five years globally, the International Energy Agency has said in its annual market report.
More than 700 GW of renewables – more than twice Japan’s current installed power capacity, will be installed during the rest of this decade, the International Energy Agency (IEA) predicts. Renewables will account for almost two thirds of new power capacity added in the world.
However the report also warns governments to reduce policy uncertainties, which it says are acting as brakes on greater deployment. IEA Executive Director Fatih Birol, said: “Renewables are poised to seize the crucial top spot in global power supply growth, but this is hardly time for complacency. Governments must remove the question marks over renewables if these technologies are to achieve their full potential, and put our energy system on a more secure, sustainable path.”
According to the IEA's Medium-Term Renewable Energy Market Report 2015 (MTRMR), the share of renewable energy in global power generation will rise to over 26% by 2020 from 22% in 2013. Non-hydro sources such as wind and solar photovoltaic panels (solar PV) will represent nearly half of the total global power capacity increase.
More renewables will be installed in emerging economies and developing countries than elsewhere because the technology is improving and getting cheaper, the report finds. China will account for nearly 40% of total renewable power capacity growth and requires almost one-third of new investment to 2020.
The report also says longer term generation contracts are helping regions such as Sub-Saharan Africa develop affordable renewable power projects faster. Birol said: “Affordable renewables are set to dominate the emerging power systems of the world.
“With excellent hydro, solar and wind resources, improving cost-effectiveness and policy momentum, renewables can play a critical role in supporting economic growth and energy access in Sub-Saharan Africa, meeting almost two-thirds of the region’s new demand needs over the next five years.
“But to be sure, system and grid integration will be crucial for enabling high levels of wind and solar PV. But while variability of renewables is a challenge that energy systems can learn to adapt to, variability of policies poses a far greater risk.”