New annual additions of renewable power capacity worldwide will increase to a record level of almost 200GW, driven by China and the US, according to a new report from the International Energy Agency (IEA).
Renewables will account for almost 90% of the increase in total global power capacity this year, the report found.
This rise is led by wind, hydropower and solar photovoltaics.
Wind and solar additions are set to jump by 30% in both the US and China as developers rush to take advantage of expiring incentives.
In 2021 the report forecasts that India and the EU will be the “driving forces” behind a record expansion of global renewable capacity additions of nearly 10%, the fastest growth since 2015.
This is due to the commissioning of delayed projects where construction and supply chains were disrupted by the pandemic, and growth in markets where the pre-Covid project pipeline was robust.
India is expected to be the largest contributor to the renewables upswing in 2021, with the country’s annual additions doubling from 2020.
IEA executive director Fatih Birol (pictured) said: “Renewable power is defying the difficulties caused by the pandemic, showing robust growth while others fuels struggle.
“The resilience and positive prospects of the sector are clearly reflected by continued strong appetite from investors – and the future looks even brighter with new capacity additions on course to set fresh records this year and next.”
Over the first 10 months of 2020, China, India and the EU have driven auctioned renewable power capacity worldwide 15% higher than in the same period last year, a new record.
At the same time, shares of publicly listed renewable equipment manufacturers and project developers have been outperforming most major stock market indices and the overall energy sector.
The electricity generated by renewable technologies will increase by 7% globally in 2020, underpinned by the record new capacity additions, the report estimates, despite a 5% annual drop in global energy demand.
The report’s outlook for the next five years sees cost reductions and sustained policy support continuing to drive strong growth in renewable power technologies.
Total wind and solar PV capacity is on course to surpass natural gas in 2023 and coal in 2024.
Driven by rapid cost declines, annual offshore wind additions are set to surge, accounting for one-fifth of the total wind market in 2025.