Daily Management Review

IEA Predicts Drop In Global Green Energy Growth For The First Time In Two Decades


According to the predictions of the International Energy Agency, there will be an annual decline in the growth in new renewable energy capacity globally for the current year of 2020 which will be the first for the energy segment in the last 20 years. 
According to the report, there will be a reduction in the number of turbines, solar plants and other installations that produce renewable electricity that will be set up across the world this year because of a reduction in demand for energy from the users of bulk energy such as the commercial and industrial sectors. Construction of new products will also be delayed because of logistics issues spurred by the novel coronavirus pandemic
“Countries are continuing to build new wind turbines and solar plants, but at a much slower pace,” IEA executive director Fatih Birol said. “Even before the Covid-19 pandemic struck, the world needed to significantly accelerate the deployment of renewables to have a chance of meeting its energy and climate goals.”
According to the IEA’s Renewable Market Update report, there will is expected to be a 13 per cent year on year drop in the additions to renewable capacity for the entire 2020 which will total at new capacity installation of 167 gigawatts (GW).
The report however said despite the drop in the addition of new capacity for the current year, there will be a growth of 6 per cent in the overall global addition to renewable power capacity year on year.
In addition to financial issues and shortages, other issues that have been identified to be behind the slowing of growth rate of renewable energy capacity for the current year includes delays in construction activity because of supply chain disruptions and the lockdown, social distancing and movement restriction measures imposed across the world by various governments to try and control the spread of the novel coronavirus pandemic.
The IEA expects that the rate of addition to of renewable energy capacity globally to stage a rebound to the level reached in 2019 because of coming online of delayed projects and due to the assumption that the governments will continue to implement the supportive policies for renewable energy capacity installation.
The IEA also predicted that the combined growth for 2020 and 2021 for new capacity addition for renewable energy will be 10 per cent lower than the agency had forecast prior to the outbreak of the novel coronavirus pandemic.
The report also stated that almost all the markets will be impacted by the reduction in the growth of renewable energy capacity except for the United States where investors are rushing to finish projects before tax credits expire.