IEA Expects Record Renewable Growth Despite Cost, Supply Problems

Increasing concerns over energy security and climate change will mobilize record levels of new capacity to generate renewable energy in 2022, according to the International Energy Agency’s forecasts.

The IEA estimates that 320 gigawatts will be in effect this year, up from the previous record of 295 gigawatts in 2021. This figure is equivalent to the total annual demand of Germany, Europe’s largest economy. With the growth of solar power in China and Europe, additions last year exceeded expectations the Paris-based agency outlined in a new report on renewable sources. “The developments in the energy market in recent months, especially in Europe, have proven once again the fundamental role of renewable energies in improving energy security, in addition to their well-established effectiveness in reducing emissions,” said Fatih Birol, IEA Executive Director.

The impact of the COVID-19 pandemic and Russia’s invasion of Ukraine have led to higher energy prices in some advanced economies, forcing policymakers to find cheaper and more reliable energy, while inflation has soared to its highest levels in decades. However, the IEA said the growth of renewable energy has been hampered by supply chain challenges, and the cost of installing solar photovoltaic (PV) panels will remain high this year and next year due to high commodity and freight prices.

Source: Reuters