The International Energy Agency (IEA) was founded in 1974 and deals with issues such as investments and electricity security, energy efficiency, air pollution and climate change.
A few days ago, the IEA published its report on the analysis and forecast of renewables until 2025.
Covid-19 and its spread have affected the growth of renewable energy, but have not stopped it, whereas the global economy, the investments and the energy consumption have slowed down. The report on renewables points out that wind, solar and hydropower have grown at the expense of bioenergy which has had a decline. According to the data, at the end of 2020 there will be a 7% increase in energy generated from renewable sources, whereas global energy demand will decline 5%. A lower economic activity will also lead to a drop in biofuels for transport (its production is expected to decline by 12% this year) and to a drop in demand for bioenergy for industries. In total, however, the demand for renewables will increase by 1%.
The policies of the states around the world play a fundamental role for the renewables sector. From January to October 2020, the European Union, China and India auctioned 15% more renewable energy capacity than in 2019. According to the report, in October 2020 the value of the shares of solar companies is more than doubled compared to December 2019. Statistics confirm that investors still have a strong interest in renewables. Even the United States, with their new president, could give a depth change to the energy future; Biden, compared to Trump’s choices, with his green policy expressed his purpose to focus on solar and wind power.
This year China and the United States will drive renewables capacity to a 4% increase, reaching nearly 200 GW.
The report also analyses the future changes in the renewables sector. The IEA forecasts that in 2021 India will become the largest contributor to the expansion of renewable energy.
By 2024, coal and gas will be surpassed by renewables that will become the world’s largest source of electricity and will be able to distribute one-third of the total electricity. As for offshore wind, it will represent one-fifth of the entire wind sector in 2025.
Powers such as China, Japan and South Korea have recently declared their intention to achieve net-zero emissions, China by 2060 while the other two countries by 2050. Their goal and that of other important markets will certainly lead to a faster spread of renewable energies.