According to the International Energy Agency, a record amount of renewable electricity has been added to energy systems globally by 2021 but it is still about half the amount of electricity needed annually to reach emissions levels. net zero by 2050, according to the International Energy Agency.
New renewable electricity capacity will reach 290 gigawatts this year, surpassing last year’s record of 280GW, the IEA said in its annual review of renewables, the IEA said. This compares with the current nuclear and fossil fuel capacity of 4,800GW.
However, higher commodity prices, which are driving up the production and shipping costs of solar panels and wind turbines, risk undermining investments in the short term, the report said.
Fatih Birol, head of the IEA, told the FT that the global energy supply shortfall is “certainly a setback, but at the same time shows us the way out”.
While commodity prices and energy bills have skyrocketed, oil and gas suppliers like Russia’s Gazprom have reported record profit and is expected to continue to increase.
But renewable energy sources are still “much more cost-competitive” than fossil fuels, and “nuclear is set to make a comeback in many countries,” Birol said. “A new global energy system is taking shape.”
Efforts to replace fossil fuels with clean energy sources, he said, should not be blamed on rising costs.
Recently Climate Conference COP26 sent “an unmistakable signal” to investors that the fossil fuel era is beginning to end, despite a last-minute change in wording to the pledge.down phase“Coal rather than “removes” polluting energy sources.
The latest IEA report forecasts renewable electricity growth will accelerate faster than ever. Within five years, its total capacity is likely to exceed 4,800GW – or more than 60% of 2020 levels, and is equivalent to all current global nuclear and fossil fuel capacity combined.
Stronger national climate policies and clean energy goals mean renewables will account for nearly 95 percent of global electricity capacity growth in the years to 2026, the report says.
The IEA also forecasts that China, the world’s largest emitter, will achieve its 1,200GW clean energy target four years ahead of the 2030 target, and could also achieve peak carbon emissions before the target date. 2030.
Meanwhile, India is set to double its new renewable electricity installations in the years to 2026, compared with 2015-2020, the report said.
The agency concluded that, despite these leaps and bounds, renewable capacity would still be “falling short” of what is needed to get the world on track towards net-zero greenhouse gas emissions by mid-century. this century.
Globally, the annual addition of renewable electricity capacity in the years to 2026 will need to be nearly double what is expected to be installed, the IEA said.
Furthermore, if commodity prices continue to remain high in 2022, the cost of new wind energy could rise to levels seen in 2015 while the decline in solar installation costs over the past three years could be offset. reversed, the report said.
To accelerate the transition to clean energy, governments have had to increase support for renewable energy and provide investment incentives, Birol said. Policymakers should also consider how they might shut down fossil fuel plants early, he said.
“It is important that financial institutions and developed countries help [developing nations] Birol said.
At COP26 in Glasgow, the developed world agreed $8.5 billion partnership with South Africa to help it shut down coal plants faster than expected.