Renewables are forecast to overhaul natural gas in terms of global power generating capacity by as soon as 2023 and could overhaul coal by 2024, according to a new report from the International Energy Agency (IEA).
IEA estimates renewable capacity additions should grow 10% next year, driven by initiatives in Europe and India. Global solar PV and wind power is likely to increase by 25% in 2022, the report claimed. Representing 95% of all growth in power generating capacity over the next five years – 60% from solar PV, 30% from wind – renewables should overtake natural gas in 2023, and coal in 2024, the IEA predicted.
While solar and onshore wind are the cheapest ways of adding new capacity, costs are also coming down rapidly for offshore wind. As offshore wind projects move beyond Europe to China and the US, the IEA expects it to account for up to one-fifth of total wind power by 2025.
Research published in late October by RenewableUK shows that the total pipeline of global offshore wind projects has grown by 47% since January – despite the pandemic – making the sector the fastest growing one across all energy segments.
“Covid-19 has put the brakes on virtually everything in the world of energy. Globally, energy demand is set to decline by around 5% this year. Renewable energy, however, has proved remarkably resilient,” Braemar ACM suggested in a note to clients today.