Renewable Energy Facilities Increase 45% Year-on-Year Amid US-China Green Competition

IEA 'Renewable Energy Market Update 2021' Report
China Leads Capacity Expansion
Significant Growth Expected This Year and Next

IEA 'Renewable Energy Market Update 2021' report. Source=IEA

[Asia Economy Reporter Cha Min-young] Last year, renewable energy capacity, led by wind and solar power, increased by 45% compared to the previous year. This is the steepest growth rate in the past 20 years since 1999. China's tripling of capacity to achieve its carbon neutrality goals was a key factor. This year, with the inauguration of the Joe Biden administration in the United States, global environmental protection efforts are expected to strengthen, further boosting the popularity of renewable energy.

According to foreign media on the 12th (local time), the International Energy Agency (IEA) stated this in its 'Renewable Energy Market Update 2021' report. In particular, last year is regarded as a year that set a new standard for the future growth of renewable energy. While demand for all energy sources such as coal and oil declined, renewable energy was the only source to see increased demand.

The report shows that last year, renewable energy capacity increased by 45% year-on-year, reaching 28 GW (gigawatts). By energy source, wind power capacity expanded by 90%, and solar power capacity grew by 23%.

The growth rate is the highest since 1999. This is due to the unprecedented increase in wind and solar energy capacity. Considering that the renewable energy market has grown dramatically compared to 1999, it means the market has expanded explosively compared to that time.

By period, renewable energy growth last year was concentrated in the fourth quarter. China added 92 gigawatts of renewable energy capacity in the fourth quarter, tripling compared to the same period last year. The United States secured 19 gigawatts of capacity in the fourth quarter of last year, a 13.7% increase.

China is not only the largest supplier of raw materials needed for wind and solar power generation but also the country that emits the most greenhouse gases due to coal power plant operations. Chinese President Xi Jinping plans to achieve carbon neutrality by 2060. It is pointed out that to achieve this, sufficient renewable energy must be supplied to close about 600 coal power plants.

The IEA predicts that renewable energy capacity will continue to increase significantly in 2021 and 2022, becoming the new normal following this year. Although the growth rate this year is expected to be lower than last year, it is projected to exceed the average from 2017 to 2019. The United States is also expected to play a leading role. President Joe Biden has pledged to reduce U.S. carbon emissions by half over the next decade.

Fatih Birol, IEA Executive Director, said, "The large-scale increase in clean energy capacity is essential to give the world a chance to achieve net-zero carbon emissions."

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