IEA report sets historic record to run renewable energy power in 2021 – despite soaring commodity prices that could derail future clean energy transitions
- The International Energy Agency (IEA) has published a report on the Renewable Energy (RES) market, which will be a record year for the growth of wind and solar power generation in 2021. According to preliminary estimates, the growth of the green energy market in 2021 will exceed the forecasts made earlier by the International Energy Agency.
- In all, it is expected that by the end of 2021, even under the most modest scenario, 289 GW of “green” energy projects will be launched around the world, which is 3% more than last year’s record of 280 GW of added capacity. .
- More than half of the renewable energy introduced this year comes from solar energy systems, followed by wind and hydropower.
- According to projections by the International Energy Agency, in the next five years, renewable energy growth will accelerate and will account for nearly 95% of the increase in global energy capacity. During this period, renewable energy will grow by more than 60% and will reach the capacities that are currently accounted for by fossil fuels and nuclear energy.
- This trend is expected even as the prices of raw materials and electricity from renewable sources rise, increasing the cost of production and transmission of solar and wind energy. Since the beginning of 2020, prices for PV-grade polysilicon (needed to make solar panels) have more than quadrupled, steel by 50%, and aluminum by 80%. In addition, transportation costs increased sixfold.
- As a result, delivery of about 100 gigawatts of contractual capacity may be delayed due to sharp commodity price increases, and biofuel market growth will decline by 3%.
what do you mean
The rapid growth of the renewable energy sector shows that the global community is ready to shift to “green” energy to combat climate change and achieve carbon neutrality. However, the IEA’s rosy outlook could be influenced by external factors such as higher commodity prices and shipping.
On the other hand, this will inevitably lead to higher prices for the electricity itself. However, given the national policies of most countries that impose high taxes on the oil and gas sector, solar and wind energy may still be the most attractive option for the consumer from an economic point of view.
On the other hand, experts are concerned that the expected growth in renewable energy in the coming years may not become a reality due to rising material and shipping prices. According to the forecasts of Rustard Energy, most solar projects planned for 2022 may be postponed or canceled due to the current situation.