Renewable power is set to break global records in 2022 despite headwinds from higher costs and supply chain bottlenecks, according to the International Energy Agency.
Unprecedented growth in capacity additions will be mainly driven by solar PV in China and Europe, the IEA said.
The world added a record 295GW of new renewable power capacity in 2021, overcoming supply chain challenges, construction delays and high raw material prices, according to the the agency’s latest renewable energy market update.
Global capacity additions are expected to rise this year to 320GW this year. Solar PV is on course to account for 60% of global renewable power growth in 2022, followed by wind and hydropower, stated the IEA.
In the European Union, annual additions in 2021 jumped by almost 30% to 36GW in 2021, finally exceeding the bloc’s previous record of 35GW set a decade ago. The additional renewables capacity commissioned for 2022 and 2023 has the potential to significantly reduce the European Union’s dependence on Russian gas in the power sector.
However, the actual contribution will depend on the success of parallel energy efficiency measures to keep the region’s energy demand in check, added the agency.
“Energy market developments in recent months – especially in Europe – have proven once again the essential role of renewables in improving energy security, in addition to their well-established effectiveness at reducing emissions,” said IEA Executive Director Fatih Birol. “Cutting red tape, accelerating permitting and providing the right incentives for faster deployment of renewables are some of the most important actions governments can take to address today’s energy security and market challenges, while keeping alive the possibility of reaching our international climate goals.”
Based on today’s policy settings, however, renewable power’s global growth is set to lose momentum next year, added the IEA.
“In the absence of stronger policies, the amount of renewable power capacity added worldwide is expected to plateau in 2023, as continued progress for solar is offset by a 40% decline in hydropower expansion and little change in wind additions,” it said.
‘While energy markets face a wide range of uncertainties, the strengthened focus by governments on energy security and affordability – particularly in Europe – is building new momentum behind efforts to accelerate the deployment of energy efficiency solutions and renewable energy technologies. The outlook for renewables for 2023 and beyond will therefore depend to a large extent on whether new and stronger policies are introduced and implemented over the next six months.”