Renewables to grow by 1 TW by 2022 - IEA

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The Paris-based International Energy Agency (IEA) has today published a new report that states solar PV was the world's fastest-growing energy source in 2016.

While China easily accounted for most of the renewables growth at 41%, the USA was second and surpassed the European Union as it added 24 GW of renewable power in 2016, up 44% Y/Y, the IEA says.

The US is the second largest market for renewables, but there is uncertainty in the future over federal tax reforms, global trade and energy policy, the report said. The IEA credits the growth chiefly to low costs (auction prices were as low as three cents per kilowatt-hour, the report says) alongside government policy nudging people away from coal and towards renewables.

China, India and the USA are expected to account for two-thirds of global renewable expansion by 2022.

Renew Power Ventures, the source said, has emerged as the lowest bidder by quoting Rs 2.64 per unit for a capacity of 250 MW, followed by Orange Sironj Wind Power at Rs 2.64 for 200 MW. Most new demand for electricity is being supplied by renewable resources, with solar providing the most.

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The IEA said renewables will continue to show strong growth over the coming years with electricity capacity set to increase by more than almost 1,000 gigawatts (GW), or 43 per cent, by 2022.

This growth will mean that renewables meet 30% of the world's power needs by 2022, up from 24% in 2016.

China's solar dominance is only going to keep growing, according to the IEA report.

China is leading the renewable electricity capacity expansion over the forecast period with over 360 gigawatts of capacity coming online, or 40 percent of the global total.

The United States represents over one-fifth of global electricity consumption in cars, but the estimated consumption of renewable electricity is expected to be smaller than in China and Europe as a result of the lower share of renewables in the electricity mix. Renewables made up almost two-thirds of new net power capacity around the world in 2016, with 165 GW of capacity coming online.

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This higher forecast is because of increase in predictions of China and India's solar PV additions. They predict that by 2022, the capacity of renewable electricity should increase by 43 percent.

"The IEA renewables report affirms the remarkable success story of renewable energy, which we are proud to be part of".

For the first time, solar PV additions rose faster than any other fuel, surpassing the net growth in coal, said the report.

Storebrand is the largest private pension in Norway with over $80 billion assets under management.

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