In wonderful news from International Energy Agency (IEA), renewable energy is on track to become the world’s top source of electricity within the next three years. The IEA’s 2023 electricity market report reveals that renewables will cover almost all of global electricity demand growth out to 2025, with a predicted 9% increase in demand over that period.
This growth will predominantly occur in Asia, where the share of fossil fuels in electricity generation is currently high. However, the IEA predicts that the share of coal in global electricity generation will fall from 40% in 2010 to 33% in 2025. Gas will generate 21% of electricity in 2025, while nuclear energy will generate 10%.
Renewables, including solar, wind, and hydropower, will dominate the growth of global electricity supply over the next three years, meeting, on average more than 90% of the additional demand. This is a significant achievement for the renewable energy sector, which has rapidly increased capacity and investment over the past decade.
The IEA’s report emphasizes the need for continued investment in renewable energy, particularly in Asia, to meet the growing demand for electricity in the region. As per the report, Asia is expected to account for two-thirds of global electricity demand growth over the next decade, with China and India being the largest contributors. The IEA notes that renewable energy investment in Asia has increased significantly in recent years, but more investment is needed to meet the growing demand.
The report also highlights the importance of policy frameworks supporting renewables integration into electricity markets. This includes policies that encourage deploying renewable energy technologies, such as feed-in tariffs and renewable portfolio standards. The report notes that such policies have successfully driven renewable energy deployment in many countries, including Germany and Japan.
The report highlights that Europe is leading the way in clean energy transitions, with renewables accounting for a significant share of the region’s electricity supply. It notes that Europe has been discussing ambitious renewables targets under the Fit for 55 Package, a set of legislative proposals introduced in 2021 to help the EU reduce net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. The energy crisis that hit the EU in 2022 has provided additional motivation to accelerate renewable energy deployment.
The report also highlights that renewables are expected to dominate the growth of global electricity supply over the next three years, meeting, on average, more than 90% of the additional demand. This growth is expected to occur primarily in Asia, but Europe will also see significant growth in renewable energy deployment.
The IEA predicts that renewables and nuclear energy will dominate the growth of the global electricity supply over the next three years. In Europe, the share of renewables in electricity generation is set to increase from 41% in 2020 to 56% in 2025. Wind and solar power are expected to account for over 80% of Europe’s renewable energy capacity growth over the next three years.
Another key aspect highlighted in the report is the importance of developing storage technologies to support intermittent energy sources such as wind and solar. As renewable energy sources depend on weather conditions, their output can be variable and unpredictable. Storage technologies can help address this challenge by storing excess energy generated during high output and releasing it during periods of low output. The IEA notes that the development of storage technologies is critical for the continued growth of renewable energy and for ensuring a reliable and stable electricity supply.
The shift towards renewables is a vital step in reducing greenhouse gas emissions and mitigating the impacts of climate change. The IEA’s report is a positive sign that the world is moving towards a more sustainable and cleaner energy future.
The IEA’s data supports the idea that renewables will become the world’s top source of electricity within the next three years. This is a significant milestone for the renewable energy sector and highlights the importance of continued investment and policy support for integrating renewables into electricity markets. The shift towards renewables is crucial for a more sustainable and cleaner energy future.