Last year was the 'turning point' when renewables toppled coal as the world's main power source
Costs are also expected to drop dramatically in the next 5 years as take-up increases.
RENEWABLE ENERGY SOURCES topped coal as the world’s biggest source of installed power generation, according to the International Energy Agency (IEA).
And government support and lower costs are expected to drive stronger-than-expected global growth in renewable energy over the next five years.
After a record 2015, global renewable electricity capacity will grow by 825 gigawatts (GW) by 2021 – a massive 42% rise – the IEA said.
The estimate is 13% higher than the agency’s forecast last year. The IEA has been criticised in some quarters for being over-cautious about renewables.
In 2021, solar, wind and other renewable sources will provide comprise 28% of world electricity production compared to 23% in 2015, the agency added, with last year marking a “turning point” for renewables in terms of investment and use.
The pick-up is mostly down to “stronger policy backing” in the United States, China, India and Mexico, it said. Costs are expected to drop by around 25% for solar panels, and 15% for onshore wind.
Figures from the Sustainable Energy Authority of Ireland for 2014 show that 23% of the country’s electricity came from renewables that year. The figure is due to rise to 40% by 2020 if Ireland is to meet its EU targets.
A wind farm at Mount Lucas in county Offaly
Market transformation
“We are witnessing a transformation of global power markets led by renewables and, as is the case with other fields, the centre of gravity for renewable growth is moving to emerging markets,” IEA executive director Fatih Birol said in a statement.
It highlighted China as “the undisputable global leader of renewable energy expansion.”
China accounted for 40% of all renewable capacity increases last year, a rate that amounted to installing two wind turbines every hour, the agency said. Worldwide around half a million solar panels were installed every day in 2015.
The exceptional growth has led the IEA to be “more optimistic” about the next five-year period, Birol said.
“However, even these higher expectations remain modest compared with the huge untapped potential of renewables,” he added.
Generation from renewables is expected by 2021 to equal the total electricity generation of the US and the EU put together today, the IEA said. But, it warned, grounds for caution remain.
“Policy uncertainty persists in too many countries, slowing down the pace of investments,” it said.
Additional reporting Peter Bodkin
