IEA renewables forecast grows 76 per cent in two years

• 1 year, 4 months ago (2022-12-07)
• David Flin

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The International Energy Agency (IEA) has raised its global forecast for the growth of renewables in what it describes as its: “largest ever upward revision” for the sector.

The IEA now forecasts 76 per cent more growth than it did two years ago. It said that this year’s forecast takes into account a wave of new policies introduced in response to Russia’s invasion of Ukraine and soaring fossil fuel prices.

The IEA report said that utility-scale solar and onshore wind power are now the cheapest options for new generation “in a significant majority of countries worldwide.” It expects renewables to overtake coal as the largest source of electricity generation by early 2025, reaching 38 per cent of the power mix by 2027.

In its 2020 renewables report, the IEA forecast an additional 1092 GW of global capacity would be built between 2022 and 2026. It raised this estimate to 1496 GW in 2021, and to 1920 GW in its latest estimate.

The IEA explained the increase: “First, high fossil fuel and electricity prices resulting from the global energy crisis have made renewable power technologies much more economically attractive and second, Russia’s invasion of Ukraine has caused fossil fuel importers, especially in Europe, to increasingly value the energy security benefits of renewable energy.