The global energy crisis is catalyzing an extraordinary upswing in renewable energy adoption, propelling installations to double their growth in the next five years, surging past coal as the foremost electricity source. This shift not only aids the energy crisis but also bolsters the prospects of curbing global warming to the 1.5°C target, according to the IEA's latest report.
With projected growth 30% higher than last year's forecast, governments are rapidly reinforcing policies for renewables. Over 90% of the global electricity expansion in the next five years will come from renewables, supplanting coal as the primary electricity source by early 2025.
The conflict in Ukraine is driving Europe's swift transition to renewables as an alternative to Russian gas. Europe's renewable capacity is set to double during 2022-2027, underpinned by energy security and climate objectives. Accelerated growth can be realized with streamlined policies, shorter permitting timelines, and incentive enhancements for solar energy.
Beyond Europe, China, the United States, and India are reshaping their policies to counter the energy crisis. China is anticipated to contribute nearly half of new global renewable capacity, while the US Inflation Reduction Act fosters renewables expansion.
Diversification in global photovoltaic supply chains is emerging, driven by new policies in the United States and India, catalyzing an estimated USD 25 billion solar manufacturing investment during 2022-2027.
Biofuel demand is set to rise by 22% in the same period, predominantly led by the United States, Canada, Brazil, Indonesia, and India.
The report outlines an accelerated scenario in which renewable capacity grows 25% beyond the main forecast, necessitating regulatory and infrastructural enhancements. This trajectory aligns more closely with reaching net-zero emissions by 2050, thereby heightening chances of containing global warming within the 1.5°C limit.
This news signifies an impactful stride towards a cleaner, more resilient energy future. The acceleration in renewable adoption, guided by global cooperation and effective policies, is a testament to humanity's ability to navigate challenges and safeguard our planet's well-being.
Sources: IEA (2022), Renewables 2022, IEA, Paris https://www.iea.org/reports/renewables-2022, License: CC BY 4.0. [Date accessed January 10th 2022]
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