IEA: "Renewable Energy Generation Capacity Greatly Increased Despite COVID-19, a 'New Normal'"

[Photo by AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] The International Energy Agency (IEA) revealed in a report released on the 11th (local time) that last year’s significant increase in eco-friendly energy generation marked the beginning of a 'new normal.'

According to the Wall Street Journal (WSJ) and others, the IEA stated that new renewable energy generation capacity, including wind and solar power, increased by 278 gigawatts (GW) last year. This is a 45% increase compared to the 192 GW of new capacity in 2019. The IEA noted that the growth rate of new generation capacity reached 45%, the highest since 1999. Furthermore, despite economic uncertainties caused by COVID-19 leading to reduced investments in other energy sources, investments in renewable energy surged to record levels.

The IEA added that last year could be considered the new normal and predicted that new renewable energy generation capacity could continue to increase significantly as it did last year. The IEA revised upward its forecast for new renewable energy capacity expansion for this year and next by more than 25% compared to the estimate released in November last year, expecting an increase of 270 GW this year and 280 GW next year.

The IEA explained that although China’s investment in the renewable energy sector decreased last year, increased investments from the United States and Europe offset this decline.

With the inauguration of the Joe Biden administration, the United States rejoined the Paris Climate Agreement in February and plans to expand investments in renewable energy, which had been neglected during the Donald Trump administration. Ahead of the 26th UN Climate Change Conference of the Parties (COP26) to be held in Scotland this November, the United States and European countries have been successively raising their greenhouse gas reduction targets, intensifying efforts to combat climate change.

The IEA expects that following President Biden’s infrastructure investment bill, U.S. investments in eco-friendly energy will increase significantly after 2022. The European Union (EU) plans to invest $1 trillion to achieve carbon neutrality by 2050.

Last year, the total renewable energy generation capacity was recorded at 2,968 GW. Generation capacities in 2019 and 2018 were 2,690 GW and 2,498 GW, respectively. According to IEA projections, renewable energy generation capacity will surpass 3,000 GW next year and increase to 3,518 GW by 2022.

Although renewable energy generation capacity increased significantly last year, fossil fuels still overwhelmingly accounted for the majority of total energy sources. The IEA reported that 81% of global energy consumption came from oil, natural gas, and coal. It expects the share of fossil fuel energy to decrease to 76% by 2030.

The IEA classifies hydropower and bioenergy as renewable energy sources in addition to solar and wind power.

This content was produced with the assistance of AI translation services.