New capacity for generating electricity from renewable sources is set for another record in 2022, as governments around the globe seek security in renewable energy and its climate benefits, the International Energy Agency (IEA) said.
Globally, new renewable power capacity rose 6 percent in 2021 to record 295 gigawatts, shaking off the rising cost of raw material, pandemic-driven construction delays and global supply chain challenges, the Paris-based agency said in its latest Renewable Energy Market update.
This year, the IEA expects global capacity additions to rise another 8 percent to 320 gigawatts — equal to an amount that would come close to meeting the entire electricity demand of Germany, or matching the EU’s total electricity generation from natural gas.
While it is necessary to speed up clean energy transitions globally, it has more immediate benefits for Europe, which is trying to cut dependence on Russian hydrocarbons to meet its energy needs, in the wake of Moscow’s military assault on Ukraine.
Wind and solar PV, in particular, have the potential to help reduce the EU’s power sector dependence on Russia natural gas by 2023, the IEA said.
“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,” said Fatih Birol, the IEA’s executive director.
“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.”
Oil and gas prices have been extremely volatile this year. Crude, which rose 67 per cent last year amid strong demand, has surged further this year following Russia’s military offensive in Ukraine that is threatening to disrupt global energy flows. In 2021, the bloc imported 155 billion cubic metres of natural gas from Russia, which accounted for about 45 per cent of EU gas imports and close to 40 per cent of its total gas consumption, the IEA said in March.
It presented a 10-point plan to reduce EU’s reliance on Russian imports, including halting new gas supply contracts with Russia, finding alternative gas sources and accelerating the deployment of renewable energy as well as increasing power generation from bio-energy and nuclear plants, among others.
Annual additions in the EU jumped almost 30 per cent to 36 gigawatts in 2021, exceeding the bloc’s previous record of 35 gigawatts set a decade ago. But the actual impact of renewables on the EU’s energy needs in the immediate future will depend on the success of parallel energy efficiency measures to keep the region’s energy demand in check, the IEA said on Wednesday.
Renewables’ growth so far this year has been much faster than initially expected, driven by strong policy support in China, the EU and Latin America, which more than compensated for slower-than-anticipated growth in the US.