Global renewables capacity will grow by 50% between 2019 and 2024 with an additional 1200GW coming online, according to a new report from the International Energy Agency.
The IEA ‘Renewables 2019’ report said growth will be driven by a combination of cost reductions and government policy.
Solar will account for 60% of the rise, IEA said, with renewables overall share of the power generation mix rising to 30% in 2024 from 26% in 2019.
Onshore wind accounts for about one-quarter of the growth and offshore wind 4%, with the latter’s capacity forecast to triple by 2024, IEA said.
Solar costs are projected to fall by between 15% and 35% in the period.
The report said the expected growth comes after renewable capacity additions stalled last year for the first time in almost two decades, but the renewed expansion remains well below what is needed to meet global sustainable energy targets.
IEA executive director Fatih Birol said: “Renewables are already the world’s second largest source of electricity, but their deployment still needs to accelerate if we are to achieve long-term climate, air quality and energy access goals.”
The report also highlights three challenges that need to be overcome to speed up clean power deployment.
They are policy and regulatory uncertainties, high investment risks and the system integrations of wind and solar power.
While distributed solar accounts for almost half of the growth in the photovoltaic market, IEA warned that policy and tariff reforms are needed to ensure the growth is sustainable.
“Unmanaged growth could disrupt electricity markets by raising system costs, challenging the grid integration of renewables and reducing the revenues of network operators,” IEA said.
“By reforming retail tariffs and adapting policies, utilities and governments can attract investment in distributed PV while also securing enough revenues to pay for fixed network assets and ensuring that the cost burden is allocated fairly among all consumers,” it said.