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Renewables to ‘account for almost 90% of total expansion in global power capacity in 2020’
Nov 25, 2020
According to a new report by the International Energy Agency (IEA), it is forecasted that worldwide renewable power capacity will increase to a record level of almost 200 gigawatts this year. With renewable energy accounting for almost 90% of the increase in total power capacity worldwide in 2020.
Global expansion
It’s suggested this predicted growth in global renewable power capacity will be driven by China and the US. With it being led by wind, hydropower, and solar photovoltaic technology. The IEA estimates wind and solar installations are set to jump by 30% in both the US and China due to developers’ plans to take advantage of expiring incentives. Despite the impact of the pandemic the renewable energy sector continues to grow, good news for the environment.
Dr Fatih Birol, IEA Executive Director, said: “Renewable power is defying the difficulties caused by the pandemic, showing robust growth while other fuels struggle.”
Looking to the future
The analysis also predicts in 2021 the growth of renewable power capacity will accelerate to its highest level in the last six years. According to the report, India is forecast to be the largest contributor to the growth of renewable capacity during 2021, with the country’s annual additions expected to double from 2020.
Dr. Fatih Birol, IEA Executive Director, said: “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.”
Green energy tariff
We’re proud to offer a green tariff to businesses, where the supplied electricity is generated from renewable sources. Find out how your business can switch to a green energy plan to take advantage of the expansion of renewable power capacity below.
Balancing planet and profit during unprecedented market volatility
Wholesale energy prices have experienced unprecedented levels of volatility since the end of summer 2021, with both day ahead/spot and future contracts surging to all-time highs. In the last couple of months, prices have decreased but still remain high compared to a year ago. This period of high energy prices is expected to continue for the foreseeable future (see next section). Energy prices have surged for a number of reasons: A global increase in gas demand following the ease or end of Covid-related restrictions throughout 2021. After the pandemic, economies across the world started to recover. Asian countries like China saw their imports of Liquified Natural Gas (LNG) increase. This resulted in lower LNG shipments to the UK and Europe. On the supply side, the Covid-19 lockdowns pushed some maintenance work from 2020 into 2021 at a time when demand was recovering. In 2021, gas production hit a record low of 363TWh, 47TWh below the previous record low in 2013. Low production was the result of an extensive summer maintenance schedule which saw shutdowns at several major terminals, as well as the Forties Pipeline System which serves a significant proportion of UK gas and oil production. A lack of wind in the summer resulted in higher demand for conventional power. European gas storage in 2021 and Q1’22 remained far below previous years and it’s unclear how these are going to be replenished in the summer given the concerns around supply including the potential suspension of Russian gas flows due to sanctions. The 1,234km offshore Nord Stream 2 gas pipeline, which was designed to double the flow of gas between Russia and Germany (and by extension the rest of Europe) has been abandoned following the invasion of Ukraine. Gas storage in the UK is extremely minimal with capacity at less than 2% of the UK’s annual demand, compared with 22% for other European countries. Whilst the UK is not heavily reliant on gas coming from Russia, it sources almost half it’s gas supply from Europe. Hence, wholesale gas and power prices in the UK are now subject to knock-on-effects from the conflict in Ukraine.
Amidst rising energy costs, digitalisation, growing pressure from stakeholders and increasing regulation, organisations may struggle to define their pathway to a low-carbon future. What can you do to protect your business’ net zero plans from the challenges of volatility? Disruption and volatility are putting organisations under pressure. Digitalisation and new technology developments continue to challenge existing business models. Its increasing dependence on energy and encouraging businesses to drive change to secure competitive advantage. And as customers, employees and shareholders look to engage with companies who understand the importance of decarbonisation, pressure is mounting to prioritise sustainability.