IEA Predicts Rapid Renewable Power Growth By 2025
The International Energy Agency’s annual report, Renewables 2022, is expecting a major increase in renewable energy around the world over the next five years. The latest report expects a 30% growth over last year’s estimations of growth, and renewable power could overtake coal as the largest source of global electricity as soon as 2025.
Amid the global energy crisis stemming from Russia’s invasion of Ukraine, fossil fuel supplies have been disrupted, according to Renewables 2022. Many countries have been moving to solar, wind, and other renewable energies to reduce their dependence on fossil fuels during this time, especially as oil and gas prices are on the rise.
From 2022 to 2027, IEA predicts renewable energies will grow by about 2,400 GW, or an 85% acceleration compared to renewable energy growth over the past five years. The amount of renewable energy growth estimated for 2022 to 2027 is equivalent to the amount of energy capacity for China.
“Renewables were already expanding quickly, but the global energy crisis has kicked them into an extraordinary new phase of even faster growth as countries seek to capitalize on their energy security benefits. The world is set to add as much renewable power in the next 5 years as it did in the previous 20 years,” IEA Executive Director Fatih Birol said in a statement. “This is a clear example of how the current energy crisis can be a historic turning point towards a cleaner and more secure energy system. Renewables’ continued acceleration is critical to help keep the door open to limiting global warming to 1.5 °C.”
In Europe, renewable energy growth is expected to double compared to the last five years, as countries look for alternatives to Russian fossil fuels. China is expected to make up about half of the predicted global renewable energy growth, according to the report.
For many countries, utility-scale solar power facilities and onshore wind turbines will be the most affordable options for renewable energy. Wind and solar power are slated to make up about 90% of power capacity added by 2027.
While renewable energies are expected to grow from 2022 to 2027, other electricity generation sources, including coal, oil, natural gas and nuclear’s share of the power mix are expected to decline. As such, IEA expected renewable energy to become the biggest source of global electricity generation by 2025, even over coal.
With advanced action, including sorting out difficult regulations and permitting processes, focusing on more renewable energy sources for heat and transportation sectors, strengthening and expanding grid infrastructure and resolving supply chain problems, IEA outlined an accelerated case that could see renewable energy grow an additional 25% over the 2022 to 2027 predictions.
“The accelerated case’s faster renewables growth would move the world closer to a pathway consistent with reaching net zero emissions by 2050, which offers an even chance of limiting global warming to 1.5 °C,” IEA said in a statement.