IEA: Renewable Energy Market Update

The International Energy Agency recently released the “2021 Renewable Energy Market Update”. The Agency has increased its forecast for the global growth of solar energy and wind energy by 25%.

The report reveals that 280 GW of the renewable energy was installed in 2020. This is 45% increase as compared to that of 2019.

Key findings of the Report

• The 45% increase that occurred in 2020 is the highest in last three decades.
• The wind power increased by 90% and the solar power (Photo Voltaic) increased by 50%
• The Biofuel demand in 2020 decreased. The year-on-year decrease in production by volume was 8%.

Predictions of the report

• The IEA predicts that the growth in wind power is to slow down in 2021. However, it will remain higher as compared to that of 2017-19.
• The growth of Photo Voltaic is to continue to increase as China and US have come forward to update their climate targets.
• The demand of biofuels is to rebound in 2021 to the levels of 2019. And will further grow by 7% in 2022.

Report on China

The report says that the renewable energy in China is to grow by 45%. It is to grow from 150 GW to 230 GW. However, this new forecast is lower than that predicted in 2020.

Report on USA

The forecasts for renewable energy in the US was increased by 20%. However, this did not include Biden’s new emission targets.

Report on India

The solar auction volumes in India increased. However, the ongoing COVID-19 surge in the country has created a short-term uncertainty.

Record Breaking renewable energy levels in India and China

India and China have made record-breaking competitive auctions. On an average, the countries secured 55 GW of new renewable power. The average price of wind energy was 60 USD per Mega Watt Hour and that of solar energy was 47 USD per Mega Watt Hour.

On an average, the corporate companies in India and China have signed “Power Purchase Agreements” for 25 GW in 2020. This is 25% increase as compared to that of the previous year.

Month: Current Affairs - May, 2021