Renewable energy power from sources such as solar and wind increased to a record high worldwide in 2021. Experts from the International Energy Agency expect renewable energy to see further growth throughout 2022 as governments increasingly seek to take advantage of renewables and climate benefits.
In 2021, a new world record of 295 gigawatts of renewable energy power was set and global capacity additions are expected to rise over 320 gigawatts this year equalizing to the entire electricity demand of Germany. Solar PV energy is on track to account for almost 60% of the global renewable energy power growth in 2022. The additional renewable energy capacity commissioned for 2022 and 2023 has the potential to reduce the European union’s dependence on Russian gas and oil.
The growth in renewable energy power this year is much faster than initially expected due to the strong policy support from China, the European Union and Latin America. The united states have a slower growth rate due to the uncertainty over trade actions against solar PV imports from China and Southeast Asia.
Dr. Faith Birol, IEA, Executive Director said “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”
While energy markets face a number of uncertainties, governments are focused on energy security and affordability and pushing efforts to accelerate the development of energy efficiency solutions and renewable energy technologies.
The growth in renewable energy power would be faster if the challenges of logistics and supply chain were not at hand. The prices for renewable technology installations are set to remain higher than pre-pandemic levels due to the freight and commodity costs, however, the market remains competitive as the installations are a much cheaper alternative to natural gas and fossil fuel prices.