Renewable energy is expected to make a record rise in 2022
The International Energy Agency forecasts a significant increase in renewable energy this year because of rising concerns over climate change and energy security.
Renewable energy is expected to grow a lot in 2022
- The International Energy Agency forecasts a significant increase in renewable energy this year because of rising concerns over climate change and energy security.
- The pandemic and the war in Ukraine have caused energy prices to go up. This has left policymakers looking for cheaper, more reliable energy sources.
- However, the high costs of solar photovoltaic panels and supply chain issues continue to hamper renewables market growth, according to the IEA.
The International Energy Agency (IEA) forecasts that there will be a lot of new renewable power in 2022. This is because of rising concerns over energy security and climate change. 320 gigawatts of renewable power will be added this year, which is the same as the amount of electricity used by Germany each year. Renewable power additions last year exceeded expectations, according to a new report from the IEA.
Renewable energy growth
"Energy market developments in recent months – especially in Europe – have proven once again the essential role of renewables in improving energy security, in addition to their well-established effectiveness at reducing emissions," IEA Executive Director Fatih Birol said. The impact of the COVID-19 pandemic and Russia's invasion of Ukraine have driven up energy prices in some advanced economies, leaving policymakers scrambling to find cheaper and reliable energy.
However, the growth of renewable power has been impeded by supply chain difficulties, according to the IEA. The cost of installing solar photovoltaic (PV) panels will remain high this year and next due to higher commodity and freight prices.
The prices for solar power have been declining for a decade, but this trend is expected to reverse due to the coronavirus crisis. Renewable energy growth will also slow down next year as progress in solar power is offset by a 40% decline in hydropower expansion and stagnant growth in wind power generation.
The IEA said that renewables growth was led by China, the European Union and Latin America in 2021. However, renewables growth has lagged in the United States. This is due to uncertainty over new incentives for wind and solar, as well as trade actions against solar PV imports from China and Southeast Asia.