According to the most recent report published by the International Energy Agency (IEA), the rise in fuel prices around the world has resulted in an increased emphasis on energy security, which will speed the development of renewable energy sources. As a result of Russia’s invasion of Ukraine, a number of countries have been driven to place a greater emphasis on renewable energy sources such as solar photovoltaic and wind power in an effort to reduce their reliance on imported fossil fuels. The researchers who compiled the IEA report anticipate that the total capacity of the world’s renewable power sources would expand by 2,400 gigawatts (GW) between the years 2022 and 2027.
By the beginning of 2025, renewables will have surpassed coal to become the primary source of electricity generation across the globe. The percentage of power that is generated by renewable sources will increase by 10% over the course of the time frame, reaching 38% in 2027. The executive director of the International Energy Agency (IEA), Fatih Birol, made the following statement: “Renewables were already expanding quickly; however, the global energy crisis has kicked them into an extraordinary new phase of even faster growth as countries seek to capitalize on the energy security benefits of renewables.” It is anticipated that the globe will add as much power from renewable sources in the next five years as it did in the preceding 20 years combined.
“This is a vivid illustration of how the current energy crisis can be a historic turning point towards a more secure and environmentally friendly energy system. The ongoing acceleration of renewable energy production is important for helping to keep the door open to the possibility of reducing global warming to 1.5 degrees Celsius. Over the next five years, the amount of electricity generated from wind and solar will climb by more than double, and by 2027, they will account for more than 20% of worldwide power generation. According to the findings of the analysis, variable technologies will be responsible for eighty percent of the global increase in renewable energy over the course of the forecasted timeframe. However, because of this, it will be necessary to incorporate new sources of flexibility into the power system.
According to projections made by the IEA, the cumulative solar PV capacity would almost triple over the 2020s, leading to an increase of almost 1,500 GW and eventually passing natural gas in 2026 and coal in 2027. Solar photovoltaic (PV) systems at utility size continue to be the least priced option for new energy generation in the majority of countries throughout the world, despite the higher investment costs associated with these systems. China, the United States of America, and India have moved more quickly than expected to design policies, implement regulatory reforms, and market reforms in order to address the energy problem.
As part of its 14th Five-Year Plan, China will be responsible for approximately half of the new worldwide renewable power capacity additions that will take place between 2022 and 2027. In order for India to fulfill the government’s aim of 500 GW of non-fossil fuelled energy capacity by 2030, new renewable installations are expected to quadruple over the course of the projected period, spearheaded by solar photovoltaic (PV) technology and pushed by competitive auctions. In the meantime, the US Inflation Reduction Act has provided additional support and long-term visibility for the spread of renewables in the United States.