The renewables boom appears headed into overdrive. A recent report from the International Energy Agency (IEA) brings rosy news for the industry, with the IEA predicting that more renewables will generate power than coal by 2025. That would make renewables the largest source of power generation in the world. A massive uptick in adoption between this year and 2027 could see nearly 2,400 GW of renewable energy added to the world within five years’ time.
Per the IEA, “that’s an 85% acceleration from the previous five years, and almost 30% higher than what was forecast in last year’s report.” As of 2021, there is 759 terawatt hours (TWH) of coal-fired energy powering the world, according to the IEA. This accounts for about a third of the power generated on the planet. The IEA found that 29% of power generated in 2020 came from renewables. It’s easy to see how renewables could overtake coal, especially as more facilities wind down operations and shutter.
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A host of factors are behind this, explains IEA Executive Director Fatih Birol. “Renewables were already expanding quickly, but the global energy crisis has kicked them into an extraordinary new phase of even faster growth as countries seek to capitalize on their energy security benefits,” Birol said in a statement:
“The world is set to add as much renewable power in the next five years as it did in the previous 20 years. This is a clear example of how the current energy crisis can be a historic turning point towards a cleaner and more secure energy system. Renewables’ continued acceleration is critical to help keep the door open to limiting global warming to 1.5 C.”
Much more could be added were countries to overhaul their regulatory and permitting policies as well as provide financial incentives for renewables. Such systemic changes could allow for an additional 25% of renewables expansion by 2027. There is, of course, geopolitical complicating factors in rapidly expanding renewable infrastructure, as the Biden administration has seen. Some experts believe that the Inflation Reduction Act’s “Buy American” incentives could put a strain on companies located elsewhere in the world and that supply chain issues will also make it harder for more renewables to come online.
Per the IEA, “that’s an 85% acceleration from the previous five years, and almost 30% higher than what was forecast in last year’s report.” As of 2021, there is 759 terawatt hours (TWH) of coal-fired energy powering the world, according to the IEA. This accounts for about a third of the power generated on the planet. The IEA found that 29% of power generated in 2020 came from renewables. It’s easy to see how renewables could overtake coal, especially as more facilities wind down operations and shutter.
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A host of factors are behind this, explains IEA Executive Director Fatih Birol. “Renewables were already expanding quickly, but the global energy crisis has kicked them into an extraordinary new phase of even faster growth as countries seek to capitalize on their energy security benefits,” Birol said in a statement:
“The world is set to add as much renewable power in the next five years as it did in the previous 20 years. This is a clear example of how the current energy crisis can be a historic turning point towards a cleaner and more secure energy system. Renewables’ continued acceleration is critical to help keep the door open to limiting global warming to 1.5 C.”
Much more could be added were countries to overhaul their regulatory and permitting policies as well as provide financial incentives for renewables. Such systemic changes could allow for an additional 25% of renewables expansion by 2027. There is, of course, geopolitical complicating factors in rapidly expanding renewable infrastructure, as the Biden administration has seen. Some experts believe that the Inflation Reduction Act’s “Buy American” incentives could put a strain on companies located elsewhere in the world and that supply chain issues will also make it harder for more renewables to come online.